Analyzing Aman Resorts: Success Factors in Luxury Hospitality

This case study delves into the success of Aman Resorts, a luxury hotel group founded in 1988, examining its unique approach to hospitality, characterized by outstanding facilities, world-class service, and beautiful locations. The study highlights the founder's vision of creating properties he would personally enjoy, the use of local materials, and the focus on community development. It explores Aman Resorts' core philosophies of family, peace, and uniqueness, emphasizing remote locations and cultural integration. The analysis considers the resort's aversion to discounting, its limited use of traditional advertising, and guest feedback regarding pricing and amenities. Furthermore, the case study investigates the importance of employee training and development, along with the resort's commitment to local communities. It identifies key challenges and recommends strategies for overcoming them to enhance market performance, providing a comprehensive overview of Aman Resorts' operations and its position in the luxury hospitality sector. The assignment provides an aim, objectives and research questions to address the key issues and provide recommendations.

Case Study
1

TABLE OF CONTENTS
References..........................................................................................................................................
2

CASE BRIEF
The provided case scenario is of Aman resorts which a luxury group of hotels and resorts
which is operating in 14 different countries of the world. Further it was founded in the year 1988
by Adrian Zecha and the first resort was opened in Phuket, Thailand. As per the provided case,
Aman Resorts is having total twenty-four properties and all are characteristic by outstanding
facilities, world class services along with beautiful location. Going through the history of Aman
Resorts, it has been observed by the researcher that its founder, Zecha has spent very privileged
childhood. In addition to this, he has also worked as a journalist in time Magazine and United
Press International. In the year 1970s, he started looking for new line of business and established
one of the most luxurious group of hotels in Asia which was Regent International Hotels. Later
Zecha sold his stake in the hotel and seek for property where he could build holiday home.
It can be stated at the time of developing each property of Aman Resorts, Zecha has
ensured to build a property in which he would love to live. It was the combined efforts of Zecha
and Edwards Tuttle (Paris based Amercian Architect) which resulted in development of
unconventional Aman resorts. Another interesting fact about the resort is that it has used local
material which are simple and durable. This has resulted in lowering down its overall cost and
has also provided support to local community.
In the present scenario, when businesses keeps profitability on their first priority, Aman
Resorts tried something new and looked forward for developing nearby communities of resort.
On the other side of this, it can be argued that there was a time when the revenue of Aman
Resorts was considered to be highest or among the highest in the entire industry. All the
properties which has been developed by the resort are based on three main philosophies which
are family, peace and uniqueness. By looking at the location of every resort, it can be stated that
all are located in remote areas which are far from traffic and population. This helps in developing
3

a feeling of relaxation and satisfaction among all resort guests. The resort can be also termed as
unique because it has incorporated itself from things or deigns which highlights local culture. On
the other hand, its philosophy of family reflects the fact that the resort seeks for providing a rich
and home like environment to all its guests.
The development of resorts also relies heavily on the kind of experience, its owners are
looking forward for providing its guest. Zecha has been always particular or specific about the
design and development of all properties of Aman resorts. This can be justified by the fact that
the rooms in one of its property, Amankora (Bhutan) was destroyed and rebuilt for several times
until its owner was satisfied.
As per the provided case scenario, it has been observed that Aman Resorts do not provide
any kind of discounting offers to any of its guest. However, it can be argued that the resort has its
own set of reasons behind the same. It has been the culture of Aman Resorts that it has never
lowered down its prices except for Amapuri in 2004 due to Tsunami. Even if it was able to earn
higher profits in 2004 due to low prices, the resort has never reduced its prices after than time.
The rationale behind this was to develop itself as a very strong brand in market. Other than this,
it can be also stated that Aman Resorts is not using any form of traditional advertisement which
can become a serious issue in the future.
On the other side of this, some guests also feel that they are paying very high prices in
Aman Resorts as compared to the kind of services which were getting. For example one of the
guests stated that there was no television in the room during their visit at Aman Resorts
Indonesia and there were many other resorts which were offering services along with TV at
comparatively low prices. Along with this, some guests also got disappointment by finding lack
of some lively activities such as bars.
As per the provided case scenario, it can be stated that General manager is the one which
takes care of every individual property of Aman Resorts. Furthermore, the staff members are
being trained and developed in such a way that they always seek for establishing long terms and
healthy relation with guests. They also want that a friendly relationship is developed between
hotel staff and guests when they leave the resort. Therefore, it can be explained that not only
guests but Aman Resorts has also taken care of all its employees in effective manner. Other than
this, majority which is 95% of the staff members are from local region. Aman Resorts always
4

seeks for the ways through which, it can provide its employees with best work experiences with
an objective to makes them learn new things and grow in life. In addition to this, heavy emphasis
is laid on training and development of staff members. This directly results in making employees
effective towards understanding clients need and meeting the same in the best possible manner.
One of the reason behind success of Aman Resorts is that it has been always able to
understand what its guests are demanding. Further, the resort also provides more importance on
encouraging employees to interact with guests at personal level. From the provided case
scenario, it has bee also observed that Aman Resorts staff members also ensure that local
communities and people living in them are not negatively affected by operations and activities of
the resort. For instance the farm of one woman at Amankoro Paro were destroyed by its dogs. In
that situation, the supervisor of human resources at Aman Resorts Paro personally went to the
farm of that lady and helped her in the process of replant those destroyed potato plants.
Therefore, it can be stated that Aman Resorts has well taken care of each and every areas
in the best possible manner. This includes growth of community, employees development and
relationship with guest. However, there are few issues or challenges which are required to
overcome in order to find better growth opportunities in the future.
Rationale (Research problem)
The purpose behind carrying out the present research is to identify factors behind the
success and growth of Aman Resorts. It can be stated that at the time of carrying out their
operations, hotels and resorts are required to deal with lots of issues and challenges. Further they
are also required to take care of factors such as employee and customer satisfaction rate. In the
present scenario, the competition among businesses in hospitality sectors has become highly
intense and therefore, it is not easy for businesses to attract customer easily. Organizations in this
industry are required to provide innovative and creative services in order to make a
differentiation in market. Old services and products can directly results in lowering down the
profits and customer satisfaction rate. The present study is going to determine the range of
services which Aman Resorts is providing in order to gain advantage over other market players.
Along with this, the research will also highlight some effective ways through which changing
need and demand of customers can be satisfied in the best possible manner. The study will
explain how Aman Resorts has developed its service portfolio and how it has resulted in
5

achieving high degree of customer satisfaction. In addition to this, it will also help in exploring
the fact that how elements such as employees development and seeking for the growth of local
communities and culture can support business organizations in enhancing sales and profitability.
In addition to this, it will also make researcher aware about the overall development of Aman
Resorts.
Aim
The aim of this research is provided below as:
“To assess range of factors behind success of hospitality organizations”- A study on
Aman Resorts
Objectives:
 To identify key challenges/issues faced by Aman Resorts
 To understand main factors which has supported in growth and development of Aman
Resorts.
 To determine the range of unique and creative service portfolio of Aman Resorts.
 To recommended ways through which Aman Resorts can overcome its key issues and
enhance its market performance
Research questions
 What are the key challenges/issues faced by Aman Resorts?
 Explain the main factors which has supported in growth and development of Aman
Resorts?
 What are the unique and creative services provided by Aman Resorts?
 What are the ways through which Aman Resorts can overcome its key issues and enhance
its market performance?
6

7