Banyan Tree navigates cross-cultural challenges amidst expansion

Balancing consistency and local practices drives the brand's success.

Banyan Tree Holdings’ journey from a single plot in Phuket to a globally recognised luxury property brand has not been without its challenges. Ho Kwon Ping, Founder and Executive Chairman of Banyan Tree Holdings and Laguna Resorts and Hotels, attributed much of the brand’s success to a nuanced understanding of cultural distinctions across diverse markets, from Southeast Asia to Japan.

Reflecting on Banyan Tree’s expansion, Ho noted that the key challenge lies in adapting to the specific contexts of each new region. "The main thing is to recognise that many things about each location are the same, but many things are different," he says.

According to Ho, differentiating between universal elements and those unique to each locale is essential. "If you get it wrong, then it can be quite messed up,” he cautioned.

An aspect of these differences, Ho explained, involves communication styles across cultures, which can often lead to misunderstandings. “In a lot of Asian societies, including in Thailand, when you talk to someone and they say yes, it doesn’t mean they agree with you,” he said. This form of passive resistance is common in many Asian contexts, where people may be reluctant to openly disagree.

He highlighted that misinterpretations arise from cultural disparities, with Western managers often unaware of the subtle ways disagreement is expressed in Asian societies. "It’s a polite way of that Asian person saying, ‘I basically don’t agree with you, but I’m not going to tell you I disagree with you. I just don’t do it.’”

Beyond communication, Ho explained that successful expansion requires selecting markets with strong growth potential. The Banyan Group’s expansion strategy centres on markets with substantial or growing demand for luxury properties, especially in Southeast Asia and Japan.

He noted that Thailand, in particular, is emerging as a strong growth market due to increasing global interest. Conversely, Japan offers unique prospects due to its mature economy and strong appeal to foreign investors, especially in branded residences.