Question

Hospitality Law
Please answer all the questions.

Answering the questions in paragraph format instead of listing the questions and answers. Use terms and applicable philosophies from the chapter. You will be graded on the quality of your post and on grammar and spelling.

WHAT You are the manager of a franchised, 90-room limited WOULD service hotel property located YOU DO? across the highway from 7 Flags, a major amusement park that is extremely busy in the summer. One of the most popular family packages your hotel sells includes a two-night stay lin on Friday night, out on Sunday morningl. complimentary breakfast and tickets to 7 Flags. You purchase the tickets, in quantity, from the 7 Flags group sales department. Your packages are marketed directly by your hotel and sold through select travel agents to whom you pay a sales commission At 3:00 P.M. on a Saturday afternoon in July, Lightning from a severe summer thunderstorm strikes a major electrical transformer in the area, causing an area power outage that includes the amusement park and results in the park's immediate closure. Your hotel is sold out. The power company is unsure how long it will take to fully restore power, but its estimate is hours, not minutes. Your own hotel has a backup generator- thus, essential hotel services such as emergency Lighting and power to the property management system (PMS) are maintained. Your lobby, however, is filled with families seeking to check out litis 4:30 P.M.) so they can leave the area and drive back to their homes (where most of them will have power.) Approximately 60 guests want to check out. None of these guests believe they should have to pay for their Saturday night stay because, due to the power outage, they will not use their reserved rooms. Some want a refund for Friday night as well, claiming the hotel did not provide the complete two-day package that was promised 1. Would you bill these 60 guests for Saturday night's stay, even if they elect to leave? 2. Would you give the guests any other compensation? 3. Would your course of action be affected if you learned the theme park had made the decision to refund the price of admission to all those who entered the park on that day? 4. If the theme park had made the refund mentioned, do you believe the amount of the refund belongs to the disappointed park attendee or to your hotel? 5. Describe briefly how the decision you make will affect: a. Your relationship with the theme park's management b. The relationship with your franchisor c. Your relationship with travel agents marketing your packages

Answer 1

(1)

No, I will not bill these guests for Saturday night’s stay. As a hotel, it was our core responsibility to provide continuous and promised serves. thus it is necessary for us to not charge the night charges. On the contrary, I will charge for the additional services availed by the customer which can include room service, foods etc.

(2)

No I will not be in a position to provide any other compensation. This event was a case of natural calamity and as a hotel we have maintained the desired hygiene factor.

(3)

No my decision will remain unaffected because of the fact that the theme parks have decided to reimburse the charges. I have already agreed not to bill customers for the Saturday’s night. I will not be in a position to reimburse the Friday’s night stay as the hotel has provided the services as agreed.

(4) & (5)

If the park has decided to refund the mentioned amount, it should be refunded to the hotel. The hotel has purchased the tickets for the guests and has the full right to take back the compensation. The compensation amount has to be adjusted in the settlement statement of the customer. My decision will not affect the relationship with my stakeholders which are theme park’s management, franchisor and the travel agent. I have tried my best to provide an exceptional service to the customer. As a group we have not charged the customers for not providing complete services. This will increase the brand value of our hotel and will invite more customers.