Last month’s security report contained three items dealing with noise and heavy traffic one night in the Kit Carson suite. The following day, housekeeping reported a huge hole in the wall between two of the bedrooms. It had not been there four days earlier, the last time the suite was used. Other damage included a broken chair, a smashed vase, and a cracked mirror.

Engineering estimated $1,300 for repairs; that amount had been posted to the folio of the 18-year-old guest. She signed the folio as she checked out. It was posted to her father’s cityledger account and billed at month’s end. He is president of a large local business.

The dad stops by the GM’s office after a business luncheon in the gourmet room. “Good grief! $1,300? It’s only a hole in the wall.”

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?