Question

A late arrival is standing at the desk waiting to be roomed. The night manager stays silent
allowing the guest-service agent to handle the situation. There are no rooms. “You don’t seem
to understand; I have a reservation. It was guaranteed with my credit card because I knew I was
going to be late.” “Sir, you made that reservation nine weeks ago on credit-card number 4300
0000 0000 0003. The card company dishonored that card; so we cancelled the reservation.
We have no rooms and the citywide convention means the closest accommodations are in the
next town, 18 miles away. Their rate is $165; my guess is the cab will be about $60. They’re
on the telephone, what should I tell them?” “I need a room. Have them hold space.” The
reservation confirmed, the guest turned toward the manager. “I feel you should pay the cab
fare and the $75 difference between the rates. Since apparently we have both made mistakes;
make it an even $100 and we’ll each take a hit!”
Questions
1. Was there a management failure here; if so, what?
2. What is the hotel’s immediate response (or action) to the incident?
3. What further, long-run action should management take, if any?

Answer 1

Q1) There was a management failure here as the hotel management didn't inform the customer of the cancellation of the reservation due to the credit card issue rather they informed him after he arrived at the hotel.

Q2) The hotel's immediate response to the incident is to let the customer know of the lack of vacant rooms while suggesting him to move to another place nearby helping him through booking of cab for the travel.

Q3) The management should polietly apologize to the customer for their decline of roooms and share the costs with him to an extent to ensure the customer is satsified and possibly books for a room in the hotel in future. Further, the management should also create confidence in the mind of customer that any such communications related to lack of rooms or cancellation of reservations etc. would be immediatly provided to him in future.