Case Study 2: Two Arrivals, One Room

Damien is the afternoon duty manager of the Prince Harry, a 300-room downtown property in Vancouver, British Columbia, Canada. The Prince Harry is an upper-midscale, full-service hotel frequented by both corporate travelers and leisure travelers that is known for its impressive meeting facilities. The hotel is sold out tonight, thanks to a convention. Before finishing up his shift at 12:00 midnight, Damien consults Kyla, the front office supervisor, to find out if there are any more registered guests who have yet to arrive. He learns that there are two such guests: Mr. Baum and Ms. Kerry. Both are confirmed reservations and both indicated late arrival time due to flight schedules. Damien checks the reservation records and learns the following:

The reservation for Mr. Baum is for a double room at a rack rate of $230 for one night. Mr. Baum is a first-time guest whose mailing address is in the state of Washington. He had booked online through the hotels website and has confirmed the reservation with a credit card in his name. No special requests were made.

The reservation for Ms. Kerry is for a single room for two nights at a corporate rate of $165/day. Ms. Kerry is a regular guest who comes on a monthly basis and invariably stays for two nights. Her guest history file shows a wealth of orders of room service meals (breakfast always and dinner sometimes) and pay-per-view movies. Her reservation was made on the phone and it is guaranteed by her company. Her employer is known to book rooms on a regular basis and also function space (mostly board rooms for meetings) a handful of times a year.

Unfortunately, there are no more vacant double or single rooms left for the night. The only vacant room left is a junior suite, which cannot be split because the bedroom can be accessed only through the parlor. Damien did some calling around earlier in the evening and learned that comparable hotels in the vicinity of Prince Harry would pick up overflow at $240 per room (double or single).

Kyla has a suggestion for Damien: Lets see who comes in first and just take this easy. I am not leaving until both guests are dealt with, trust me. I will check in that first arriving guest into the junior suite. Never a problem for me to give away a minor upgrade, right? If the second guest would arrive later as well, I will walk him/her and pick up the tab for all the costs as we always do if we are walking. Dont worry boss, Ive done this before.

The Prince Harrys walking policy states that the hotel pays for a walked guests cab fare, room charge, and one long-distance call. Damien has to instruct the Kyla what course of action to follow. His goal is to maximize revenue while considering both short-term and long-term implications.

Discussion Question

Question 1

How should Damien advise Kyla?