Case Study

LUX Resorts & Hotels

Problem Statement

This case study illustrates how the marketing team and innovative ideas could increase net revenue by simply
giving discounted rates to local guests in conjunction with this year's annual board meeting. In addition, team
members were presented with heartfelt guest feedback and preliminary financial results. By introducing the
Celebrate Life concept, our marketing analytics team has attracted more guests from across the globe and a
passionate team dedicated to continuously improving our products and services. The board believes this year
they will continue their success.  The purpose of the case study is to forecast future business growth by:
Identifying the financial standing of the company; Displaying an accurate and fair picture of the financial
results; and maintaining a profitable business model

To reach the target of €38 million in EBITA from foreign guests, the first thing on management's agenda has
to do with deciding which mix of rooms need to be marketed during each season at each of our ten hotels
and another requirement is that the board be informed of the revenue that can be raised from local guests.
Having this number allows the board to make decisions about which corporate social responsibility programs
it will support for example education, trade and life skills empowerment programs for socially vulnerable
groups, assistance for health conditions like thalassemia, flora and fauna conservation, civic embellishment
projects. A big part of the hotel's mission was to give back to society. 

Relevance Background and facts

LUX Resorts & Hotels was established as Naiade Hotels in 1998 with a seafront luxury hotel on Mauritius' east
coast called Beau Rivage. In the wake of Beau Rivage's success, Naiade Hotels began acquiring and building
more hotels along Mauritius' coastline. The rapid growth rate of the hotel and a host of management
problems led to service problems, dissatisfied guests, and ultimately cash flow problems, resulting in the
hotel almost going out of business. As a result of Jones' leadership, a member of the Mauritius tourism
industry since the 1970s, a new management team was brought in to lead the project. As the new
management team instilled new energy, rigor, and innovation into the company, the label was rebranded as
LUX Resorts & Hotels.
Inadequate resource optimization and other restrictions that exceeded management's control led to the
failure of Hotel Naiade. The hotel closed due to inattention and lack of customer attraction as a result. 
Throughout their stay, guests enjoyed simple, fresh, and sensory experiences that delivered the "Celebrate
Life" experience. There were events such as customized health and spa sessions, a magical tree of wishes,
junk art galleries, impromptu film screenings on the beach, pop-up surprises such as free ice cream carts, call
anywhere but the office phone booths, treasure hunting, and reasonably priced mini-bar products to prevent
unpleasant surprises when the bill came. According to Jones and his team, the excellent reviews and top
rankings the group's hotels achieved on travel websites such as Booking.com and TripAdvisor were due to the
memories guests treasured from their "Celebrate Life" experiences.
One of the reasons for the closeout could be their quick expansion policies. With the new management
Naiade was re-formed with a different name as Lux resorts and hotels. The basic needs of employees were
met, and incentives were offered to employees who brought customers, provided suggestions for
improvement, and engaged team members. . To overcome the past failure of Naiade hotels, several
brainstorming and facilitation workshops were conducted to determine the root cause.

Summary of key issues/decisions.

After a new management team identified all possible root causes, their recommendations were reviewed by
several subject matter experts. Management also encouraged employees to participate in brainstorming
sessions to help them understand and address the problem. 
Motivating employees through rewards, incentives, and professional development opportunities can keep
them engaged. The positive attitude at work should be respected even if it means letting go of a few
employees. Every stay at the hotel was designed to be a memorable one based on the assumption that a stay
at the hotel was not only luxurious, but also more hospitable, lighter, and brighter than other hotels. Several
team building activities were held to form the team and to discuss the toolbox, as well as facilitation
workshops to understand the requirements and to ensure compliance with the organization's goal and
objective. discounts were given to locals during off-season to fill the hotels.  To keep customers engaged and
happy, we engaged them in multiple recreational, sporting, and extracurricular activities. 

Proposed solution methodology

In this case study, the objective was to improve the operations and benefits achieved by Lux resorts and
hotels. The most significant obstacle faced by LUX was internal opposition from those unwilling to change. In
the beginning, management and staff were resistant to the new policies, especially around wage cuts due to
underperformance. In order to transform the company, the CEO ensured that the changes envisioned would
be implemented. LUX revenues grew rapidly. If employees cooperated with the CEO's vision, company
revenues would only strengthen their employment within the company, as opposed to continuing in the
same way, which would lead to cutbacks in staff. Boosting employee morale and promoting compliance
would have helped the CEO achieve his vision  

Questions

 In what ways did LUX face challenges during the transformation process? Did these challenges get
addressed, and did anything else need to be done? 
 Which factors contributed most to the success of LUX Resorts' service revolution? 
 In order to maintain its strong service culture, what should be the next steps for LUX RESORTS?