Assignment 4: Read Case LUX*: Staging a Service Revolution in a Resort Chain: Page 605-

619 in Text and answer the following questions.

1. What were the main factors that contributed to LUX* Resorts’ successful service

revolution?

Lux, was a hospitality group operating in the Indian Ocean, previous

management of the company suffered from poor financial & quality and a weak brand,

up to the management changed with new ideas an innovation, the factors which

contributed to a successful service revolution are the following:

Factor 1: Change of leadership in the organization with a new business model

the new vision statement is now “We Make Each Moment Matter” involved the clients

and help them to “Celebrate Life”

Factor 2: Business was renamed for rebranding purposes, includes the employees

to be part of this transformation with ideas and suggestions, otherwise build a new

company service culture from scratch.

Factor 3: CEO inspired his team to innovate and empowered them to make

decisions and if they have mistaken, they will take this an opportunity to learn.

Additionally, share with the employees the new vision, purposes and, values.

Factor 4: Focus on the performance of the management team, implementing

measurement tools and incentives. (Wirtz, Lovelock 2018).

2. What key challenges did LUX* face while carrying out its transformation? How were

they addressed, and what else could have been done?

The principal challenge was an internal opposition because initially the

management and the employees resist to new policies and changes, but the new CEO

could prove them that were necessary changes to transform LUX and in 12 months they

will see how revenues rapidly increase. The first step that they took was to install the

Vision, Purpose, and Values (VPV), being The Vision, “We make Each Moment Matter”

and the purpose, “Helping People Celebrate Life” finally de Values “People Passion,

Integrity, Leadership, and Creativity”, as well they used case examples of success of

companies like Disney, The Ritz-Carlton, and Singapore Airlines to illustrate service

excellence, they established 7 levels of service at Lux being Unbelievable a wow service.

To have the correct KPI LUX paid close attention to customer feedback and

ratings from TripAdvisor’s, this is monitored and responded to by management

personally. Additionally, the incentives to the employees are contagious because those

who don’t get the incentives and see that the other employees do, next month they will

do more effort to win because these incentives mean additional money to their pockets.

Now in their expansion plan, LUX entered into a franchise agreement to open

Café LUX, and RTG LUX concept outside the hotel. In conclusion, this approach would

have boosted morale and made employees more compliant and buy into the CEO’s

vision (Cooper, M. 2011, August 22).

 References:

(PDF) LUX*: Staging a Service Revolution in a Resort Chain: People, Technology, Strategy.

(n.d.). Retrieved from

https://www.researchgate.net/publication/309753817_LUX_Staging_a_Service_Revolution_in_a

_Resort_Chain_People_Technology_Strategy

Cooper, M. (2011, August 22). How to Make an employee Confident With Job Security. Retrieved

from https://smallbusiness.chron.com/make-employee-confident-job-security-10390.html

LUX*: Staging a Service Revolution in a Resort Chain | Services Marketing. (n.d.). Retrieved from

https://www.worldscientific.com/doi/abs/10.1142/9781944659028_0032