Recommendations and Implementation Plan
The Banyan Tree Group is becoming a globally dominate player in the hospitality industry. Though Banyan Tree must look at expanding globally, rapid growth will pose several external, environmental, social and financial challenges. The following steps would help achieve success in this challenging global market:
Approach: A systematic approach would be required for each market as each country is unique and complex.
Knowledge: An in-depth understanding of the unique culture and traditions of the locals would be required to create authentic experiences.
Innovation: The global traveller is constantly on a quest for unique and exciting experiences. To stay ahead of the competition, continuing adaptation,
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In addition their properties blend harmoniously with the natural environment has been well received. The company has made a strong effort to promote volun-tourism offering guests the opportunity to give back to the local community which has gained them goodwill and world-wide appreciation. The future of tourism will be based on environment sustainability (Cernat and Gourdon, 2007).
Glocalisation: Chairman Ho had the foresight to identify that an Asian hotel would not achieve success in Morocco or Greece if it refused to adapt and incorporate the local culture. Adaptation of the local culture into the Banyan Tree brand architecture has set them apart in the hospitality industry. The company philosophy of service excellence has helped retain their market leadership position.
Relationship building: Going forward, Banyan Tree would need to build stronger relationships with locals, partners, customers, travel agents, banks, airlines and employees (Terrero
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Despite all the positives the rapid expansion has led to the serious risk of brand dilution. Banyan Tree has identified the challenges of global expansion and taken conscious measures to overcome them. However in order to stay ahead of competition, their growth strategy will need to constantly be reinvented.
In conclusion, I would like to add that today, Banyan Tree is not the only hospitality chain creating destinations and pioneering new experiences. A 2007 research by Ernst and Young reveals that lifestyle hotels annual rev-par has shown a rapid growth from 10% to 22% in just five years (Schneider, 2008). This shows that innovation has become crucial for survival in the cut-throat competitive scenario. The companies who do not evolve with the changing times face the threat of becoming
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Globally the tourism and hospitality industry is undergoing and evolving the radical changes. From the past experiences are now advancing at greater pace through faster development of skills and knowledge developed to create and adapt innovation in several ways. Therefore, it is important to have greater understanding of current issues and knowledge in order to cope with future challenges effectively.
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Premier Inn is the name of a British Budget Hotel chain running the largest hotel brand in the United Kingdom. Hotel chain is running 690 hotels with more than 50,000 rooms built in different countries. The hotel chain listed in London Stock Exchange in 1987 with brand name of “Whitebread” and started trading of its services under the chain of “Travel Inn” in order to compete with travellodges. Business operation of Premier Inn is not only limited to city centers but also covering suburbs and airports locations Hotel chain is following the expansion and acquisition policies since the time of its inception and acquired hotel chain named as Premier Lodge in 2004 (Whitebread, 2013). This acquisition increased the number of hotels and the profit as well. Premier Lodge was running with 141 hotels and contributed 70% of the total profit of “Whitebread”. Target market of the hotel chain is not only the leisure visitors and families but also the world business class seeking countless business and travel facilities. Award winning business services, comfortable sleep on king size beds and delicious breakfast are further adding value for the hotel chain while elevating the status of Premier Inn to be the first choice of families and business class to take their stay decisions at Premier Inn. The ambitious and high paced profitable progress of the Hotel chain is opening new ways of expansion and development. The hotel chain is therefore, planning to increase around 45% i.e. 75,000 rooms
To be the first choice of hotel guests, team members, and owners alike, building on the heritage and history by:
The Ritz-Carlton Hotel Company operates within the upscale & luxury hotel industry. While it could be argued that Ritz-Carlton operates in the more broad and inclusive lodging industry, they offer a highly differentiated product and service and therefore find themselves operating in an exclusive industry alongside very few direct competitors, such as Four Seasons Hotels, HongKong and Shanghai Hotels, and Starwood Hotels & Resorts. Therefore when analyzing this industry I will not be including cheap hotels, motels, lodges, or inns, unless to offer potential substitutes to luxury hotels. In order to assess the attractiveness of the upscale & luxury hotel industry, an analysis of the general environment surrounding the industry must be
Marriott is a multi brand company with a Global Portfolio that providing lodging that fit within many market segments. This report will discuss briefly Marriott’s Portfolio of hotels, what they do, briefly examine a number of their key marketing strategies and examine how they are implemented, measured and ask the question does this make them market leaders?
Hotel Chain as showing to us practice is the most effective way of integration to hospitality business. The main advantage of such integration it is immediately creating customer base and bigger potential market of customers, cost reduction due to general management, logistics, marketing; common quality standards; centralized training and, as a consequence of all
The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.
Tourism is a very dynamic sector in global competitions. According to the demand of time and the passion of people tourist destinations are transforming day by day (Adnur, P. 1980). For this reason one can find a lot of changes current form of a destination rather than the previous form. The study of innovation in tourism sector encourage to how we can do it something new in the tourism industry. The use of innovation theory in the tourism sector has to develop of tourism Industry and help to increase visitors. On the basic level, a consensus has been reached that an innovation defines a new idea and applied to provide some type of business value (Sears and Baba, 2011; Yu and Hang, 2010). According to Carlsen et al. (2008: 3), innovation can be described as “a catalytic development process that activates a number of processes according to a new situation.
Banyan Tree’s success has been a great case for entrepreneurs in the hospitality industry to study. With the genius ideas that had been put successfully into practices by Banyan Tree CEO Ho Kwon Ping, the company had made a dramatically transformation that had become a phenomenon at that time. This essay will briefly investigate deeply into business strategy applied by the Banyan Tree that had affected the core focus of the company, as well as discussing if the same strategies used in the hyper-dynamic hospitality industry today, would they be as successful or would new strategies need to be employed.
Banyan Tree offers a unique experience with its hotel and spa experiences in the South East Asian region. Labeling itself as an aspirational brand, the company was established by the Ho family in 1992 and has boasted a gross profit of $52.1 million in 2006. Its superior branding, excellent corporate social responsibility practices and its careful investment and expansion strategies attribute to its success. As the company goes public it faces the new possibilities, offered through increased capital, and new challenges such as demands imposed by shareholders. How will the company continue to expand its profitability while preventing brand dilution through overexpansion?
They recently acquired a small hotel chain headquartered in France. Brunt’s chief executive decided that half of the new hotels in France would be retained and rebranded as part of the Brunt Hotels Group; the other half will be sold. This will support Brunt’s strategic objective of growing the organization slowly to make sure that new ventures are well supported and opened on time and on budget. Brunt’s hotels are considered budget accommodations; they are functional, clean and reasonably priced. Additional information about UK hotel standards is available at http://www.qualityintourism.com/content/pdfs/Standards/Budget%20Hotels%20 Standard_INT.pdf . Most guests stay for one to three nights and are a combination of business and leisure travellers. The hotels are typically situated in downtown locations that are easily accessible by mass transit. Tourists are attracted to these hotels in popular visitor destinations where the many local attractions mean that they will not be spending much time in their hotel rooms. The organization has decided to use an ethnocentric approach and send some of their existing UK-based managers to France to lead the changeover of the new hotels and then manage them after they re-open. If this new overseas venture is successful, Brunt may decide to acquire other small hotel groups in other European countries. The organization would like to own 150 hotels in the next