The Bayan Tree Harvard Case Solution & Analysis


Banyan Tree is a maker of premium luxury resorts, hotels, and spas throughout the Asia Pacific. The main concern of the company is the development, management and ownership of resorts and hotels with the objective of frequently improving and expanding the market. The Banyan Tree Company was founded by a travel enthusiast and former journalist whose name is Ho Kwon Ping and his wife Claire Chang. They spent 15 years in managing the family business of commodities, Food products, Commodities, Consumer electronic and property development. But lost due to lower cost, then he decides to build a strong brand in order to get competitive advantage and enter into the business of luxury resorts.

The idea to enter into the luxury resort business was encouraged by the gap in the hotel industry that was not being filled by the giant chains likes Hilton and Shangri-La. Banyan Tree has been acknowledged around the world for its prominence on social responsibility and commitment to preserving the environment. The Banyan Tree Hotels and Resorts (BTHR) opened its first resort in Phuket, Thailand in the year 1994 since the company started growing its business.

Furthermore the company has received some around 400 awards for their facilities management. Banyan Tree Hotels and Resorts business starts with the idea of providing their customers individual villas with private pool and spa treatments in order to increase the uniqueness and privacy and spa treatments to increase privacy and uniqueness. The Banyan Tree Hotels and Resorts actively care for the natural and human environment and revitalizing local communities has created the pride and respect among the staff.

Market Analysis

Main Trend

The Banyan Tree Hotels and Resorts (BTHR) have strong branding and it always has been rich in culture and heritage along with the superior spa and wellness services. They are focused on maximizing. Its human resource through the training of its staff members. In addition to this the process of service delivery varies according to the local culture and practices. The company has hired the international advertising agency of the marketing communications of the company.

The company has designed all its hotels and resorts with the aim of continuously providing its customer “a sense of place” to enhance the culture and heritage of the target. The company always built its resorts by using the local materials in order to minimize the effect on the environment. Now a days the focus of the company is about rebalancing its assets in order to finance their global development of the project. The company emphasis on the care for the environment and participation of the guests on environmental conversation programs.

The main focus of the company is to preserve its local culture with the continued expansion into the global market. The company green imperative fund (GIF) to support its worthy environmental and corporate social responsibility.

Target Market

The target market of the Banyan Tree is the luxury based premium market, which means that it includes the customers who are looking for the intimacy and romance.  The target market of the company includes luxury, premium, couples and rich market segments. In addition to this the target customers are those who want the finest thing in their life as well as a high level of services without an astronomical price tag. The target market of the company includes the individual leisure travelers, married couples and the tours from different locations, such as Asia, Europe and United States.

Furthermore the target market of the company also includes the customers who demand the private and intimate accommodation without the anticipations of the glitzy hotels. The company also provides the product and services to the customers who want to go on a holidays to explore their inner self. The other categories of the customers include families and corporate clients.

Competitive Analysis

The competition in the market of luxurious is getting intense day by day and there are many companies competing against the Banyan Tree are offering the same concept of the nature with the wellness and spa. The company has the capability to construct a distinctive style of designing and branding of its products and services. The hotels and resorts of the company located in different locations in different countries are the combination of the elements of local culture that place  with the  organization's cultural spirit along with the sentiment of romance, calmness, luxurious like a natural habitat. In comparison with its industry rivals, the company believes that strong brand name is important in order to survive in the industry than an incentive for being popular. Therefore, the reason of the success in the resorts and hotel industry based upon the strong brand name and this leads the Banyan Tree Company to success...................

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