1. If you were Amanda, what are the sales-related factors that would influence your final decision?
2. If you were Amanda, what nonsales-related factors would influence your decision?
3. Would it be important to know how other hotels in your market area were thinking about this issue? If so, how would you find out?

“What’s wrong with being first? We should be proactive, not reactive,” said Jenny Richard, the controller at the Brookshire Hotel.
“I’m telling you, it’s simply a bad idea … at this time … in this market,” replied Margie Jackson, the hotel’s DOSM. “No one else is doing it.”
It was the idea of changing hotel policy from that of allowing day-of-arrival room reservation cancellations to one that required a 24-hour notification of cancellation. It was being proposed by the controller and the hotel’s assistant GM.
“We shouldn’t allow guests to cancel their rooms right up until 5:00 P.M. on their day of arrival,” said Jenny. “Airlines don’t let their customers cancel at the last minute … at least not without a big penalty to the party who cancels. We should do the same thing.”
“Like I said, no one else in town is doing that right now,” replied Margie. “If we change our policy, we will lose guest to other hotels. I think it’s a really bad idea.” Amanda Larson, the hotel’s GM, listened to the discussion carefully. Ultimately, it would be the GM’s decision to change, or not to change, the hotel’s cancellation policy.