Executive Summary
Banyan Tree Phuket was started with a 232-room Dusit Laguna Resort in 1987 by Ho Kwon Ping (KP), who is the chairman of Banyan Tree Hotels and resorts, and his younger brother. It is a luxury accommodation that emphasized romance, intimacy, privacy and rejuvenation. It is a resort based on the concept of individual villas designed as love-nests for couples.
This case describes the development of Banyan Tree Resorts &Hotels and its future expansion. BTRH has been very successful for the last over 20 years since 1987. From a small hotel, it has developed an international company in the global hospitality industry. In this case, BTRH is currently facing several challenges for its future expansion, including its organizational structure and future trends of its operations. This report attempts to discuss its operating strategies issue and people management issue that BTRH has faced in regards to its operation and future growth and then comes up with some solutions and recommendations for the company.
In terms of its operating strategies issue, the success of BTHR achieved from a small hotel owes to its operating strategies such as targeting the right market segment, selecting the right sites, effectively manage design and construction, managing relations with local governments and communities and building and managing the Banyan Tree Brand. And its service delivery system on the internet offer a diversification service and service package which let customers convenient to arrange their whole trips, and also spread the brand in a broad marketing.
As for its people management issue, staff is one of biggest constraints for its future growth. For BTHR, it encourages staff to be innovative. It gives not only managers but also local staff enough freedom to offer service in their own ways. This particular means to mobilize employees plus some financial incentive keep the high employee satisfaction and no staff turnover which reinforces its...