China is a key focus of growth and Kiong believes the group timed its entry well. It entered China early with Banyan Tree Lijiang and Banyan Tree Ringha. “The halo effect these two resorts created allowed us to gain a foothold in Sanya, Hangzhou, Cheng Jiang and Shanghai, all within the last five years. China is rising and we caught the tide nicely,” he said.

Banyan Tree is expected to confirm the first closing of the Banyan Tree China Hospitality Fund in January 2011 with a fund size of RMB1 billion (approximately USD150 million).

“We believe that Banyan Tree offers a sweet spot in terms of unique, intimate and personalised experiences that appeal to the Chinese market. With China demonstrating tremendous growth and sustainable tourism, Chinese consumers are looking to discover different cultures, memorable experiences and quality time with family.”

Thailand, with its political instability issues, was one market of concern. Prior to the sale of Dusit Thani Laguna Phuket, Thailand constituted more than 70% of the asset base in the group’s balance sheets, with Dusit Thani representing 5% of its portfolio, said Kiong.

“The sale of this asset has lowered our proportion of assets in Thailand and our aim is to focus on key expansion areas such as China, and other parts of the world, thereby growing our footprint as a global brand while rebalancing our asset base at the same time.”

One marketing strategy that has worked for Banyan Tree is its XTC (Xtraordinary Travel Consultant) programme, which focuses on retail travel agents.

“Our goal was to bring to focus the importance of the retail travel agent to our business model. We are in a people business and people do business with people they like, and on this front we like to think we’ve achieved our goal,” he said.

“The challenge is to continue to innovate new ways to keep our relationship with the retail agents fresh and interesting.”

Following the launch of XTC Awards in selected markets in 2009, it unveiled XTC on a global level in February 2010. The revamped version of XTC has a dedicated website banyantree.com/xtc for travel agents to track their progress, access useful tips and insider’s information on choice destinations, as well as receive updates on the latest promotions.

Available to travel consultants via either a qualifying selection process or by-invitation-only basis, the privileges of being an XTC member include the opportunity to enjoy an all-expenses-paid one-week holiday for two at a selected Banyan Tree or Angsana resort. Members can also track their progress on this dedicated XTC website.

“We are pleased that we have exceeded our initial target of membership by over 50%. Top markets with the most number of members include Great Britain, Germany, US, Australia and India,” said Kiong.

Since the launch of XTC this year, a significant number of agents have qualified for the XTC Premier category – the highest ranking level valid for those who earn a pre-determined number of XTC points. These top-performing agents can enjoy an all-expenses-paid one-week getaway for two at a Banyan Tree or Angsana property, inclusive of dining and spa treatments.

Acknowledging that focusing on retail travel agents while most in the industry are trying to go direct and online, Kiong said, “I am a firm believer that we should not just try to do things better, we must try to do things differently. 

“While some other companies may be moving away from travel agents, and choosing to focus more on online channels and FITs, we recognise that travel agents still play an instrumental part in the business, especially for our targeted clientele.”

Kiong noted that the concept of “luxury” had changed over the years and now the term “mass luxury” was no longer a contradiction in terms.

“In the 1930s in Singapore, if your family owned a car, chances are everyone has heard of your family. Today, with car prices in Singapore being the highest in the world and a public transport network second to none, there are more 34,000 families in Singapore with at least two cars !

“Two cars in a family, I can argue, is a luxury. Yet, there are 34,000 families in tiny Singapore that have them. Yes, there is such a thing as “mass luxury”.”

Kiong is also a believer in social media marketing “as a great way to reach out to and engage in dialogue with our existing and potential guests”.

“Today, consumers spend more than 20% of their online time on social networking sites, and Facebook has become the #1 website in many markets. We actively engage with and respond to users on Facebook and Twitter, and have grown our Facebook fan base by four times this year alone.”

He added, “Based on our experience so far, social media platforms are indeed important tools for us to engage our fans, as well as turn more guests into fans by letting them know that we hear their feedback and act on them. In fact, social media platforms are not just good for building customer loyalty – they also allow us to reach out to new customers who decide to stay with us after reading about our offers on Twitter or positive reviews of our resorts on TripAdvisor.

“Technology is nothing more than an enabler. It is not the strategy. All said and done, we must have clarity on who is our customer, what he/she expects, how he/she likes to be communicated with and delight him or her through superior delivery.

“I do not believe in gimmicks and theatrics. What we stand for and offer must have quality and be authentic and elegant. That’s what Banyan Tree is about.”

Featured image credit : http://www.luxurydreamhotels.com