Strategic Resorts & Hotel Management - Research and Present a Strategic Analysis of a Resort Banyan Tree in Samui, Thailand

Strategic Resorts & Hotel Management

Research and present a strategic analysis of a Resort Banyan Tree in Samui, Thailand.

1. Table of Contents

1.        Introduction        2

2.        Body        2

2.1.        Opportunities and Threats for the Resort Industry in Thailand        2

2.2.        Reasons for Threats and Opportunities        3

2.3.        Priorities in Resort Operational Management Plan of Thailand’s individual resort operator in the next 12 months        4

2.4.        Different Actions to be taken in counteracting perceived threats and optimizing opportunities        5

3.        Conclusion        6

4.        References        6

1. Introduction

With tourism being one of the fastest growing sectors in the national economy of most countries, hospitality has become one important and core component part of the industry that has witnessed fast growth rates in recent decades. Along with the enhancement and improvement of living standards worldwide, resorts industry has soared to become one strategically promising area within hotel management that is increasing quickly in number and quality amidst the external market environment (Andriotis, 2011). In this report, a strategic analysis into the case of Banyan Tree Resort – a resort system in one touristy location in Thailand – Koh Samui – will be conducted to demonstrate insights into this emerging industry. The analysis will be based on the identification of opportunities and threats that are facing the resort industry in Thailand to realise trends that market leaders should be aware of. Reasons underneath such external forces will then be specified, followed by suggestions on what should be paid attention to for resort management in the next one year and recommendations on actions that should be taken to leverage opportunities while minimising potential threats for individual resort operator in Thailand tourism industry.

1. Body

1. Opportunities and Threats for the Resort Industry in Thailand

2. Stakeholders’ Matrix

3. Priority Matrix

In recent years, Thailand has become one of the most popular destinations for tourism domestically and internationally thanks to attempts to promote and develop tourism throughout the country. Tourism has developed and become an important sector that is associated with various opportunities and threats from the external market environment. Among the resort industry in Thailand, Banyan Tree Resort is one market leader in the field and perceived as a chain of premium resorts in Thailand. The Banyan Tree resort chain has had a wide presence throughout the country in various destinations. Given how the resort industry has attained a significant growth in recent years, Banyan Tree is entitled to both opportunities to leverage and threats to handle in the market.

The first opportunity within Thailand’s resort industry is the trend of ‘Staycation’, where there have recorded an increasing number of local tourists who would choose to spend time in a fine resort for recreational purposes instead of spending their time in overseas destinations (Tham & Huang, 2018). This comes from an emerging trend among the domestic tourists who would want to celebrate special occasions or to have quality time with family or friends, which match with the purposes of resorts. The second opportunity is the Loyalty program that various resorts have developed, which encourages more future stays at the resort chain in different locations in the country. Another big opportunity for players in the resort industry in Thailand is from corporate customers who often move to host various events for employees in a resort setting such as vacations, retreats, dinner galas or dance nights (Sahadev & Islam, 2015). Corporate customers are strong in financial capability and big in demand, so they offer big opportunities for various resort brands.

However, there are also threats in the industry that Banyan Tree as one resort provider in the market should be aware of to develop suitable strategic actions. The first threat from the market is the possible effect from the global recession, where the effect has resulted in slow economic growth due to the fluctuations within the European economies. Another threat is within the fluctuation of foreign currencies, which affects largely the number of international tourists coming to resorts or the choice of hospitality with cheaper preferences from tourists (Gregory & Fu, 2017). Besides, the stringent government policies imposed on the resort premises development can also deter tourists from using them. And finally, the emergence of integrated resorts has created much harsher competition among the resort industry.

1. Reasons for Threats and Opportunities

Awareness of opportunities and threats within the industry that business providers operate under is important for research and analysis into the external environment, providing insights from the market that can be combined with internal traits to develop suitable tactics and strategies to develop in the future. With every point of opportunities and threats, besides recognition of the trends beneath them, understanding of the reasons for those would help businesses to better perceive the market situation before formulating any strategies.

In terms of opportunities, the first reason for how Staycation is becoming a new potential trend for resort provider is that the improved living standards have helped more local people to enjoy luxurious retreat for themselves in resorts setting. People tend to celebrate important occasions to go to rest in resorts for attaining of quality time with their friends and family, so resorts with improved experiences for such purposes would be a perfect choice. Second, the reason for loyalty program to become promising opportunities for resort industry is that normally resort brands often develop and build their resorts in various locations; therefore, they can target old customers but in new destination, therefore, loyalty program would be an appropriate incentive for attracting them (Repetti, et al., 2015). For example, Banyan Tree has its presence throughout Thailand and in other countries as well, so once the customer has stayed in the resort in Koh Samui for example, they can redeem their points to deduct costs for staying in Phuket the next time they stay, that would trigger better customer loyalty. Finally, the reason for corporate customers giving more opportunities for resorts is because corporations always have events that need to be organised in professional setting for employees, so resorts prove to be a suitable choice with combination of various hospitality purposes that can meet their needs perfectly.

In terms of threats, the reason that resorts operators in Thailand should be aware of the global recession is that Thailand is one hot destination for customers from other countries, including Europe as one big market and high spending. With the slow economic growth in the region, it will cut down on the demands for resorts or their switch towards lower choices for their stay, making it a big threat for the development and expansion of resorts businesses in the current period (Xiao, et al., 2012). Second, the fluctuations of the currency are also another threat because if the currency is strong, tourists might not want to use resort for their stay and seek for cheaper options. Moreover, stricter regulations imposed from the government for resorts such as laws related to smoking or strict custom policies would become a threat as they discourage certain types of visitors from using the resort services. Finally, the emergence of integrated resort chains is highly competitive, as they allow more good choices for tourists and create much harsher competition within the industry.

1. Priorities in Resort Operational Management Plan of Thailand’s individual resort operator in the next 12 months

From analysis into the various opportunities and threats that resort operators in Thailand can be entitled to, it is important to be perceived of the core points for consideration in the near future for a one-year period, where resorts should prioritise which ones to concentrate upon.

First, for management plan of resorts operations in the next 12 months, a general resort provider should leverage the opportunities coming from corporate customers. This should be the top point to include due to the potentials that this type of customers can generate for any resort businesses. Corporate customers will also have various events to organise for their employees, and company vacation or bonding trips have become so popular in recent years that resorts should leverage and develop their premises that can offer suitable services to corporate customers. Therefore, this opportunity should be taken action upon to develop appropriate services that meet with the needs of corporations.