Assignment

AN INCIDENT IN HOTEL MANAGEMENT

So What Does FSG (Frequent-stay Guest) Stand For?

occupancy has been so high this year that the hotel has "regretted" a large number of reservation requests.

A registered couple was scheduled to leave at 6:00 AM on the morning of March 31. A family emergency with their young child called them home late on March 30. The airline accommodated the couple on a red-eye flight without charging for the ticket change. They ask the desk for a late check-out, 9:00 PM, and a half-day rate of $110.

The hotel was full that Sunday; most of the business crowd had already filled the house. The manager on duty denied the request because of the late hour and the unlikelihood of servicing and reselling the room. A full night's charge was made, $220.

In his letter of complaint, the husband asks to be reimbursed and questions the meaning of being a FSG. He notes that "I am not a big customer of yours." Adding, "You'll probably me even less frequently now" The FSG profile shows three stays from the family since their membership was launched almost three years earlier. 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?