2. Mr. Kim Liang has been a frequent guest at the Educational Inn, staying at the Inn at least two nights each month for the past ten months and paying rack rate. When Mr. Liang called to book his most recent two-night stay, a reservations agent quoted him a frequent traveler’s discount rate (15 percent below rack rate). Mr. Liang was pleasantly surprised. On the day of his arrival, the hotel was so overbooked it was forced to reject walk-in guests due to a lack of available rooms.
Questions: Should the reservations agent have offered Mr. Liang a frequent traveler’s discount? Why or why not?
3. Mr. and Mrs. Louis are planning a trip to visit their grandchildren. Knowing that the Educational Inn is near their destination, they call the hotel to make reservations for a four-night stay (Tuesday through Friday). During the week in question, the Educational Inn is facing high demand for both Tuesday and Wednesday nights, while Thursday and Friday appear to have significantly lower occupancy forecasts. While talking with the Louises, the reservations agent, following management instruction, quotes the hotel’s high rate (the rate applicable to the first night, a high-demand night). Even though they would like to stay at the Inn, the Louises consider the rate too high and decide to stay elsewhere.
Questions: Did management’s policy of quoting the highest to lowest rates serve the best interests of both the Louises and the Inn? What other strategies could have been used?
