Essay on Service Quality - Banyan Tree Group

2898 Words Jan 19th, 2011 12 Pages
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
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These motivated them to be more dedicated to their work and helped to enhance the overall customer service delivery. By experiencing the real stay at Banyan Tree resort, employees will be able to better understand and anticipate guests’ needs.

Pioneer status: gaining first mover advantage

Banyan Tree is the first to come up with the idea of tropical spa pavilions, when clinical spas were still popular. As a pioneer, Banyan Tree gained the first mover advantage to penetrate the market. This is indeed a great opportunity for them as the lack of competition helped to speed up and consolidate Banyan Tree’s position in the spa and resort industry.

Environmental-friendly business practices

Despite incurring higher costs for being environmentally conscious, Banyan Tree continued to protect and preserve the natural environment where the resorts were located. This is simply because Banyan Tree aims to become an attractive tourist destination in the long run.

According to the case study, examples of preserving the environment include the use of local materials to build resorts, build villas around existing trees and on stilts and platforms to avoid cutting trees and possible soil erosion, therefore helping to minimize impact on the natural environment. Banyan Tree Resorts also made use of nontoxic and biodegradable toiletries which were filled in reusable containers. (Christopher L. et. al., 2005)

Banyan Tree participated in programs such as

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