Service Quality - Banyan Tree Group
Service Quality Group Project
1. What are the main factors that contributed to Banyan Tree’s success?
Great experience & expertise of founder
Extensive travel experiences, sharp observation and superior foresight of Ho Kwon Ping, founder of Banyan Tree, inspired him to bridge the price gap in the hotel industry.
Ho foresees that the 21st century will be followed by a greater Asian demand for the industry, therefore he created a brand that Asians will like, with a strong Asian culture, which will also attract the global consumers. (Mary Scoviak, 2007)
Ho attributes the success of the Banyan Tree Group, as opposed to other Asian brands, to his ability to understand Western consumer markets. While Ho’s upbringing has allowed him to straddle both East and West, this will not be key moving forward, he says. “The 21st century is really going to be the age of Asia – both India and China. The huge consumer markets are going to be Asian” (Insead 2003, para. 3)
Excellent choice of target segment
Banyan Tree targets the middle to high end consumers to make them settle for something that is not as highly priced and exclusive as a premium resort such as Aman but yet offers them the same benefits which will suit their purpose.
With the stressful and busy schedules that many couples face today, Banyan Tree’s resort provides an avenue for couples to relax, spend quality time together, as well as to build closer relationships.
This target segment is supported by S. Tamer Cavusgil director of Institute of International Business at the J. Mack Robinson College of Business at Georgia State University. He stated that managers should refer to the various market potential indicators and the most important to examine and monitor the middle class segment’s size and expansion. This is because the middle class segment contributes the most to the economy and they are the most active consumers. So in new markets or expanding markets, the middle class segment’s size
1. What are the main factors that contributed to Banyan Tree’s success?
Great experience & expertise of founder
Extensive travel experiences, sharp observation and superior foresight of Ho Kwon Ping, founder of Banyan Tree, inspired him to bridge the price gap in the hotel industry.
Ho foresees that the 21st century will be followed by a greater Asian demand for the industry, therefore he created a brand that Asians will like, with a strong Asian culture, which will also attract the global consumers. (Mary Scoviak, 2007)
Ho attributes the success of the Banyan Tree Group, as opposed to other Asian brands, to his ability to understand Western consumer markets. While Ho’s upbringing has allowed him to straddle both East and West, this will not be key moving forward, he says. “The 21st century is really going to be the age of Asia – both India and China. The huge consumer markets are going to be Asian” (Insead 2003, para. 3)
Excellent choice of target segment
Banyan Tree targets the middle to high end consumers to make them settle for something that is not as highly priced and exclusive as a premium resort such as Aman but yet offers them the same benefits which will suit their purpose.
With the stressful and busy schedules that many couples face today, Banyan Tree’s resort provides an avenue for couples to relax, spend quality time together, as well as to build closer relationships.
This target segment is supported by S. Tamer Cavusgil director of Institute of International Business at the J. Mack Robinson College of Business at Georgia State University. He stated that managers should refer to the various market potential indicators and the most important to examine and monitor the middle class segment’s size and expansion. This is because the middle class segment contributes the most to the economy and they are the most active consumers. So in new markets or expanding markets, the middle class segment’s size
References: Insead, 2003, viewed on 10 February 2008, http://knowledge.insead.edu/banyantree.cfm S. Tamer Cavusgil, 2008, viewed on 8 February 2008, http://globalatlanta.com/article/16935/ Hohol, 1997, viewed on 10 February 2008, http://www.fao.org/DOCREP/003/X1579E/X1579E10.htm Oppapers.com, 2008, viewed on 13 February 2008, http://www.oppapers.com/essays/Banyan-Tree/172517 Cleartrip.com, 2008, viewed on 15 February 2008, http://www.cleartrip.com/hotels/info/banyan-tree-phuket-132514/reviews BanyanTree.com, 2009, viewed on 16 February 2008, http://www.banyantree.com/ Mary Scoviak, 2007, viewed on 8 February 2008, http://www.hotelsmag.com/article/ca6518835.html BanyanTree, 2006, Sustainability Report 2006, viewed on 15 February 2008, http://www.banyantree.com/greenimperative/Banyan_Tree_CSR_2006.pdf Christopher Lovelock, Jochen Wirtz, Hean Tat Keh, Xiongwen Lu, 2005, Services Marketing In Asia, 2nd edition, Prentice Hall, pp. 580 Gary Armstrong, Philip Kotler, Geoffrey da Silva, 2006, Marketing, An Introduction, An Asian Perspective, 5th edition, Prentice Hall