A.

Background Banyan Tree Hotels and Resort had become leading player in the luxury resort and spa market in Asia. Banyan Tree Hotels and Resort (BTHR) received first guest in 1994 in Phuket, Thailand. BTHR is a brand synonymous with private villas, tropical garden spa and retail galleries promoting traditional craft. It had grown into a leading manager and developer of niche and premium resorts, hotel and spa in Asia Pacific. In early 2009, BTHR managed and/or had ownership interest in 25 resorts and hotels, 68 spas, 65 retail galleries and two golf courses in 55 location in 23 countries. Since its establishment in 1994, the companys flagship brand, Banyan Tree, had won some four hundred international tourism, hospitality, design and marketing award. BTHR was founded by Ho Kwon Ping, a travel enthusiast and former journalist and his wife Claire Chang. Ho spent some 15 years managing the family business, which was into everything imaginable, such as commodities, food products, consumer electronics, and property development, competing mainly on cost and was not dominant in any particular country or industry. Ho decided that building a strong band was the only way for him to maintain a sustainable competitive advantage. The idea of entering the luxury resort market was inspired by the gap in the hotel industry that giant chains could not fill. There existed a market segment that wanted private and intimate accommodation without the expectation of glitzy chain hotels. This is was fueled by the sharp price gap between the luxurious Aman resort and other resort in the luxury resort market, Ho saw potential for offering an innovative niche product that could also bridge the price gap in this market. Based on their experience, a resort should provide more than just accommodation. Ho and Chang hit upon idea of building a resort comprising individual villa, local-inspired architectural design, and positioned as romantic and intimate escape for guests. Banyan Tree had moved up its positioning into the higher end of the luxury market. The successful Banyan Tree Phuket make the company worked quickly to build two other resorts, one at Bintan island in Indonesia and the other Vabbinfaru Island in the Maldives. The company never look back. Even though Asias travel industry experienced periodic meltdowns such as the Asian Economic Crisis in 1997 1998, the September 11 attack on WTC in 2001, the dot.com crisis in 2001-2002, SARS in 2003 and the Tsunami on December 26, 2004, no employee was retrenched and room rates at Banyan Tree rose steadily. B. Product Information Banyan Tree Resort comprised individual villas that came with a private pool or spa treatment room, each designed to offer guest exclusivity and utmost privacy. All Banyan 1

Tree Hotels and resort were designed around the concept of providing a sense of place to reflect and enhance the culture and heritage of the destination, reflected by architecture, furnishing, landscape, vegetation and service offers. To create sense of exotic sensuality and ensure the privacy of its guest, the resort are designed to blend into natural landscape of the surrounding environment and use natural foliage and boulders ad the privacy screen. The resort local flavor was also reflected in services offered, some of which are unique. Employee were allowed to vary service delivery process according to local culture and practice. Banyan Tree also offering wedding package in which couple were blessed by monk. Product and service were conceived with the desire customer experience in mind. Intimate Moment package specially created for couples, presented as surprise when guest returned to find their villas. Another draw of the resort was the Banyan Tree Property. The pioneer of the tropical garden spa concept, that offered variety of aromatic oil massage and face and body beauty treatments using traditional Asia therapies with choice indoor and outdoor treatment. The spa product used were natural, indigenous product made from local herbs and species. The spa experience was promoted as a sensorial, intimate experience that would rejuvenate the body, mind and soul. Chan promotion the Banyan Tree Gallery, a retail outlet showcasing indigenous craft. Banyan Tree Gallery worked closely with village cooperatives and nonprofit craft marketing agent to provide gainful employment to the artisans. C. Business Situation 1. Political a. There is different regulation in each country to regulate of dressing. This would be a concern for Banyan Tree Hotels and Resorts to investing in that country. 2. Economy a. Cost of living in Asia is cheaper than other continents, so the owner of Banyan Tree Hotels and Resorts would prefer to invest in Asia.

Living Cost
!"#$%&'(()& !" (" -" )" 6" ;" =" A" E" !0" !!" !(" !-" !)" !6" !"#$%&'((*& !" )" (" !0" -" 6" ;" =" E" !!" A" !-" !)" !=" (!" +,-./#0& #$%%&'" *'+'," ./" 1234'5" 72$89"/23:'" <9&,'" >:,?'3@" 74&8B:3C',D" 74&8B:3C',D" F8'C5" *'+'," G3',H:" 7&,I'+23:" F%3':C" J$%83'C&'"

Source: http://livingingreece.gr/ b. The price gap in the hotel industry between premium resort (Amanpuri) and the other resorts in the luxury resorts is not fill. 3. Social a. A lot of tourist from developed countries chooses hostels by the original culture and heritage of the destination b. The attitude of Asian people is more friendly, warm, and welcoming 4. Technology a. Increasing number of websites offering good accommodation at affordable prices making it easier for tourists to see the offer b. Development of environmental friendly and natural ingredients for their facility

SWOT Analysis

!"#$%&"'() !"#$%#&'%(&$)%#$*#&+,-$('$./#-*$+-('$("#$ -)(0%)/$/)-*&1)2#$ 5&#$("#$-)(0%)/$6'/+),#$)-*$.'0/*#%&$)&$ ("#$2%+7)18$&1%##-$ ;)-1(0)%8$6'%$("#$&#-&#&$ !"#$%#&'%(&<$/'1)/$=)7'%$>)&$%#=#1(#*$+-$ ("#$&#%7+1#&$'?#%#*$ @42/'8##&$>#%#$)//'>#*$('$7)%8$("#$ &#%7+1#$*#/+7#%8$2%'1#&&$)11'%*+-,$('$/'1)/$ 10/(0%#$)-*$2%)1:1#&$
!""#$%&'()*+, !"#$%&'(#)%*'+,)&-'.$#'/+&/')%*'0121#3' /$"-0'4-&,-%"4'' 8$#0*'9+*-'-2:)%4+$%'' @A"/'#)%B'$.'"$:'CD'E4+)%'<#)%*4'F-)&1-'+%' @GGG'' H-,(-#4'$.'"/-'0-)*+%&'/$"-0'$.'"/-' 9$#0*''

*$+,%$(($() 3)42#%+-,$("#$-)(0%)/$%#&'0%1#&$ 9'0/*$/'&#$("#+%$+*#-:(8$+6$'2#-$+-$.+,$ 1+:#&$

-.$*/%+, 5$6-#%,-%"')00-&)7$%4'' 8)4')';$,:-7"$#'+%'"/-':0)%%-*'0$;)7$%' $.'<)%3)%'=#--'>$"-04')%*'?-4$#"4''

D. Competition Situation 1. Banyan Tree Phuket (end year 2009)

Hotel Banyan Tree

Rooms 108

Price (Baht) 11887

Potential Room Nights 39.432

Room Nights Sold 31.117

Occupany % Market Share 24.6

Highlights Dedicated to living in harmony with nature and connected to the lands culture Reflecting the style and elegance of Thai culture, the resorts graceful pavilions and villa homes are situated in a coconut plantation on a headland overlooking the Andaman Sea -

Amanpuri

40

22308

14.88

8.707

6.9

Sheraton

323

5490

120.156

86.432

68.5

2. Banyan Tree Maldives (end year 2009)

Hotel Rooms Price (US$) 262 Potential Room Nights 17.856 Room Nights Sold Occupany % Market Share 17 Highlights Banyan Tree has created an exclusive island sanctuary renowned in the Maldives and beyond Six unique luxury beachfront Private Residences will be built at both the sunrise and sunset sides of this magical island, Soneva Fushi Resort With two superlative Four Seasons luxury Maldives resorts on land, plus private Four Seasons cruises, you have the option of creating your own oneof-a-kind adventures Experience friendly Maldivian hospitalit y combined with a wealth of leisure activities and services to suit all tastes

Banyan Tree

48

13.492

Soneva Fushi

62

301

23.064

12.666

16

Four Season

106

341

39.432

22.107

27

Hilton Maldives

130

158

48.36

32.959

41

3. Banyan Tree Bintan (end year 2009)

Hotel Rooms Price (US$) Potential Room Nights Room Nights Sold Occupany % Market Share Highlights Experience the natural sights and sounds of an island stay set in one of the oldest tropical rain forests, hillside terrain and secluded beach Mayang Sari Beach Resort captures natural beauty in its essence and fragrance Bintan Lagoon Resort highlights nature's wonders and azure waters Our unique blend of sunny Mediterranean spirit and warm Indonesian hospitality will make you feel more than welcomed here

Banyan Tree

72

339

26.52

19.606

12

Mayang Sari

56

85

20.44

8.488

Bintan Lagoon

441

99

151.84

96.735

57

Nirwana Resort

245

69

89.425

38.309

23

E. Marketing Mix 1. Product Banyan Tree Hotels and Resorts is a firm that serves resorts, spas residences, destination club memberships, retail outlets, and even museum shops. BTHR introduced another brand, Angsana Hotel, which is a hotel with more contemporary and affordable brand than Banyan Tree. Also, BTHR also expand their brand, The Museum Shop by Banyan Tree and Banyan Tree Spa Galleries. Banyan Tree Spa Galleries are the retail 5

outlets that selling more spa-focused merchandise, such as aromatherapy amenities, essential oils, candles, and body care products. The Museum Shop by Banyan Tree is joint partnership with Singapores National Heritage Board that sell merchandise inspired by artifact in the museum. 2. Price Banyan Tree Hotels and Resorts offer an innovative niche product. They target market is the wealthy customer that want an exclusivity and privacy. The price of Banyan Tree Hotels and Resorts is varied depend on the place. In Phuket, BTHRs cost is between $1200 and $7000 and in Seychelles, the cost is between 1500 and 4200. 3. Place In the beginning, BTHR only built hotel and resort in tourism object. But, in 2002, Banyan Tree started to build hotel and resort in the heart of major city, such as Bangkok, Sydney, Singapore, India, and Shanghai. In 2009, BTHR have 25 resorts and hotels, 68 spas, 65 retails galleries, and 2 golf courses in 55 locations in 23 countries. 4. Promotion In the first 2 years, BTHR cooperate with international advertising agency. They designed logo and tagline Sanctuary for the Senses. Banyan Tree Resorts were promoted as providing romantic and intimate smallish hotel experiences. BTHR promote their service through high-end travel magazine and their website, www.banyantree.com. Because they targeting high-end customer, BTHR choose to work only with agents specializing in exclusive luxury holidays targeted wealthy customer. Beside that, Banyan Tree also cooperated with local agent and launch their own GDS (Global Distribution System) code. 5. Physical Evidence All Banyan Tree Hotels and resorts were designed around the concept of providing a sense of place to reflect and enhance the culture and heritage of the destination. The resorts are designed to blend into the natural landscape of the surrounding environment. It also designed to create romance and intimacy environment. 6. Process The process of All Banyan Tree Hotels and resorts is almost similar with the other hotels. The customer can booked directly, via travel agent, via phone or their websites, www.banyantree.com. The difference is services of All Banyan Tree Hotels and resorts were conceived with the desired customer experience in mind. For example, on Intimate Moments package, when the guest back to the villa, their villa will be decorated with a romantic situation and decoration. Beside that the guest also can do 6

other exciting activities, such as planting coral and take part in the Green Sea Turtle Headstarting Projects. 7. People All of the employees were trained in basic standards of five-star service establishments. In addition, some employees got a taste of the Banyan Tree Experience training. Although the management imposed strict rules in the administration of the resorts, employees were empowered to exercise creativity and sensitivity. Banyan Tree invested liberally in staff welfare and the companys generous staff welfare policies apparently paid off. This creates a culture in which everybody is friendly and helpful. F. Problem Definition We can conclude potential problems in Banyan Tree Hotels and resorts, which are: 1. How can the company expand their business into Americas, Europe, and Middle East? 2. How can Banyan Tree retained its competitive advantage? Our decision is that the main problem of Banyan Tree was: How can the company expand their business into Americas, Europe, and Middle East. G. Formulate Alternatives The alternative solution for the main problems are: 1. Built places in developing countries with new sub-brands 2. Use brand endorser for promote universe H. Analyze Alternatives 1. More accessible to their target market in the developed countries and locate resorts in attractive and exotic places. So, cost structures were low and labor was relatively inexpensive compared to the developed countries. 2. To reach their all visitors, Banyan Trees can use Miss Tourism International for promote their brand all over the world. I. Recommendation

1. Banyan Tree can create a sub-brand which still carrying its original concept, which is exotic Asian theme and romantic atmosphere. They should keep their strong position as sanctuary for romance and intimacy rather than luxurious accommodation. Bring the east exotic culture to the world. East cultures, which is varies, are what tourists and travellers looking for when visiting Asian country,
7

uniqueness, diversity, exoticism, which Banyan Tree could provide all that criteria. According to The US Spa Industry analysis, spa visits in US in 2009 is 143 million visits, and in 2010 is increased about 4.7% became 150 million visits. This would such an opportunity to penetrate US market, especially with the strong position of Banyan Tree Hotel & Resorts, which has specific target and segment. 2. Banyan Tree can maintain its unique positioning in increasingly overcrowded resort market competitors. In condition Banyan Tree has to continue developing competitive strategies in order to increase unique positioning.
J. Contingency Plan Banyan Tree Hotels and Resorts make a resort in developed countries with original brand.