The Influence of add-on Service Innovation on Purchasing Decisions At Resorts and Villas in Ubud Mediated by the Behavioral Intention of Multigenerational Family Tourists

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Bali– Add-On Service Innovations Influence Resort Booking Decisions Among Multigenerational Family Tourists in Ubud. The research was conducted by Deasy Astrid Natalia, Komang Agus Rudi Indra Laksmana, and I Gusti Ayu Diah Werdhi Srikandi from Universitas Mahendradatta and published in the Indonesian Journal of Business Analytics (IJBA) Vol. 6 No. 1 (February 2026.

The research was conducted by Deasy Astrid Natalia, Komang Agus Rudi Indra Laksmana, and I Gusti Ayu Diah Werdhi Srikandi finds that innovative add-on services offered by resorts and villas play a significant role in influencing accommodation purchasing decisions among this tourist segment.

Multigenerational Family Tourism on the Rise

Multigenerational travel has become one of the fastest-growing segments in global tourism. According to recent travel reports, approximately 47 percent of travelers participate in multigenerational trips, reflecting a significant increase compared to previous years.

In Indonesia, the trend is even stronger. Around 58 percent of Indonesian travelers plan trips involving multiple generations, making destinations such as Bali increasingly attractive for family tourism.

Within Bali, Ubud in Gianyar Regency has emerged as a popular destination due to its cultural attractions, natural landscapes, and family-friendly accommodation options. Statistics from the Bali Central Statistics Agency indicate that Gianyar recorded more than 250,000 domestic tourist visits per month, totaling 742,808 visits between March and June 2025.

However, with more than 4,500 accommodation properties listed on online booking platforms in Ubud, competition among resorts and villas has intensified. As a result, hospitality businesses must develop new strategies to differentiate their services.

Add-On Services as a Competitive Strategy

One increasingly popular strategy is the development of add-on service innovations.

Add-on services refer to optional supplementary offerings provided alongside the core accommodation experience. In the context of Ubud resorts and villas, these services may include:

  • Balinese cultural programs
  • Traditional cooking classes
  • Wellness and spa packages
  • Children's recreational activities
  • Private airport transportation

Such services enhance the overall guest experience and provide additional value, particularly for families with diverse generational needs.

Study Conducted at Four Resorts and Villas in Ubud

The research was conducted at four prominent hospitality properties in Ubud:

  • Tanah Gajah, A Resort by Hadiprana
  • The Royal Pita Maha
  • Bhuwana Ubud Hotel and Farming
  • Purana Suite Ubud

A total of 90 multigenerational family tourists who had recently stayed at one of these properties participated in the study.

Data were collected through structured questionnaires containing 18 research indicators measuring three main variables:

  1. Add-on service innovation
  2. Tourists’ behavioral intention
  3. Purchasing decision

The data analysis employed Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4.0 software.

Add-On Innovations Increase Purchase Intentions

The study results reveal that add-on service innovation significantly influences both behavioral intention and purchasing decisions.

Key findings include:

1. Add-on innovation positively affects tourists’ behavioral intention
The relationship shows a coefficient of β = 0.517 (p = 0.000).

2. Add-on innovation also directly influences purchasing decisions
The coefficient recorded β = 0.297 (p = 0.006).

3. Behavioral intention strongly predicts purchasing decisions
This relationship shows β = 0.457 (p = 0.000).

The study also confirms that behavioral intention acts as a mediating factor between add-on innovation and purchasing decisions.

This means that add-on services influence purchase decisions not only directly but also indirectly by shaping tourists’ attitudes and intentions toward the services.

Experience Value Matters for Multigenerational Families

The research highlights that multigenerational tourists value experiences that allow family members of different ages to participate together.

Activities such as cooking classes, cultural workshops, or family wellness programs create shared experiences that enhance the perceived value of the accommodation.

However, the study also notes that many add-on services offered by resorts in Ubud are becoming increasingly similar. As a result, these services may be perceived as standard industry offerings rather than unique differentiators.

The Challenge of Add-On Service Commoditization

One of the key findings of the study is the phenomenon of add-on service commoditization.

Many resorts and villas offer nearly identical supplementary services, such as cultural experiences, spa packages, children’s activities, and transportation services.

When similar add-ons are widely available across properties, their ability to differentiate hotels in the competitive market becomes limited.

Therefore, hospitality operators must develop more personalized and innovative services to maintain competitive advantage.

Strategic Recommendations for Hospitality Businesses

The researchers suggest several strategic actions for resorts and villas:

  • Develop more unique and personalized add-on experiences for multigenerational families
  • Create bundled family experience packages combining several add-ons
  • Strengthen marketing communication that highlights family experiences
  • Offer bundled service packages with attractive pricing

Examples of innovative add-on concepts include:

  • Family cooking programs with customizable recipes
  • Wellness activities designed for grandparents and grandchildren
  • Cultural storytelling sessions for families
  • Adventure programs specifically designed for grandparent-grandchild bonding

Conclusion

The study confirms that add-on service innovation plays a significant role in shaping the accommodation purchasing decisions of multigenerational family tourists in Ubud.

Behavioral intention acts as a crucial bridge between service innovation and actual purchasing behavior.

In an increasingly competitive tourism industry, resorts and villas must continuously innovate and create personalized experiences that accommodate the needs of multiple generations traveling together.

Author Profiles

  • Deasy Astrid Natalia Universitas Mahendradatta 
  • Komang Agus Rudi Indra Laksmana-  Universitas Mahendradatta 
  • I Gusti Ayu Diah Werdhi Srikandi-  Universitas Mahendradatta 

Research Source

Natalia, D. A., Laksmana, K. A. R. I., & Srikandi, I. G. A. D. W. (2026). The Influence of Add-On Service Innovation on Purchasing Decisions at Resorts and Villas in Ubud Mediated by the Behavioral Intention of Multigenerational Family Tourists. Indonesian Journal of Business Analytics (IJBA), Vol. 6 No. 1, 173–184.

DOI: https://doi.org/10.55927/ijba.v6i1.16249

URL: https://journal.formosapublisher.org/index.php/ijba


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