1. What do you think Roy should tell Ms. Grades?
2. Would you advise Roy differently if you knew that each of the Tech-Mar reservations was for a 10-night stay at full rack rate?
3. Assume you accept the 35 room reservations. If it should occur, what would you tell a guest who needed to be walked despite arriving with a confirmed reservation?
4. What ethical issues will be involved in Roy’s decision?

Roy Buddy, GM of the Grand Plaza Hotel, must make a decision. It is noon on Wednesday, and the 400-room hotel managed by Roy has 30 rooms left to sell because 170 guests currently have rooms in the hotel and another 200 guests have reservations for arrival that night.
Approximately one hour ago, Tech-Mar Holdings, one of the Plaza’s largest customers, called Lacey Grades, the FOM, to reserve 35 rooms for that very evening. Ms. Grades replied that she would get “right back” to the Tech-Mar representative.
Ms. Grades, a talented but relatively inexperienced FOM, has asked Roy how the situation should be handled. After being filled in on the details of the guest’s request, Roy asks that the FOM supply the past eight weeks’ no-show history for the hotel.
That data is presented below:

Transcribed Image Text:

Grand Plaza No-Show History Weeks Ago Weekday No-show % of Total Reservations Wednesday 5% Wednesday 0% Wednesday 2% Wednesday 4% Wednesday 1% Wednesday 4% Wednesday 0% Wednesday 3%