An Analysis of Overbooking and Impacts on Customer Behavior Within the Hotel Industry

A doorman can please the customer with a smile and a few words of welcome, but one surly waiter can kill the effect. Or if we keep an executive waiting in his suite in his underwear for his only suit to come back from a one-hour pressing, we could lose a lifetime customer worth hundreds of thousands of dollars. No hotel, however splendid, looks good to someone whose day it has ruined. For example, lodging manager usually work long and irregular hours including weekends, evenings and most public holidays, usually works indoors, and from an

Mr. McKenzie was immediately uncomfortable with the policy of the hotel. In his line of business, he knew that a successful company would not follow this procedure, when booking a customer’s reservation.

It will also allow the tasks to be completed efficiently so that the business can focus on improving other areas of the business where the employees may require a higher level of training in customer service such as the waiters and reception staff. I think these departments should not use rationalization because they have direct contact with the customers, to make the customers feel welcomed and help the business to keep its identity of a quality hotel they must be more social and engage with the customer to provide them with the individual needs and services the hotel has on offer. Junction Hotel should also cut down on their costs much like Travelodge have done so that they offer the basics to the customers and have the extras available on extra cost so that not only can they exploit efficiency in service but have variety in terms of the product they have on offer which will help them increase their profits and market share in this difficult climate. Junction Hotel should also change their way of management so that they have more of a social business which will should help the employees to feel more willing to work and feel wanted so that they can provide a cheerful and happy experience for the customer, which will be an opposite to if they adopt rationalization in management like the experience customers feel at McDonalds, they often feel they are talking to a robot and may choose to go

As we discussed in class, every business is faced with these issues and they are important to managers making strategic decisions. One of the first things learned about business is that if there is no demand for a good or service, the firm that provides it will not continue to exist. Over time the hotel industry has continued to change with market conditions and make itself attractive to business

Barriers to get into the hotel industry are huge, which make the hotel industry not look appealing to new entrants.

What factors lead to variations in demand for rooms at a hotel such as the Accra Beach?

Hilton Hotels is one of the biggest players in the hospitality industry with over 2900 (as of September 2007) hotels worldwide consisting of numerous brands and products. The hospitality industry is service centered and highly competitive. The challenge for Hilton is to create and deliver value better than its competitors. Hilton understand that it is important to improve customer experience and build strong relationships with the customers. Hilton Hotels adopted a Customer Really Matter (CRM) strategy out of necessity to cater for

Airlines use a formula of combining their yield and inventory costs to determine ticket prices. While it is imperative to focus on the idea of being profitable, the focus is to maximize the cost of the flight revenue. One huge factor that encourages an increase in the cost of tickets relates to a customer ordering a ticket close to the departing date, define this as a risk factor because they need to make up for all unsold seats. A high percentage of the revenue is dedicated to overhead costs such as fuel and labor. When a ticket price is higher with one airline than the other, the customer interprets this as being an excessive cost. The demand is greatly affected by the external market

In order to identify the optimal booking policy we have conducted simulation with 40 different booking levels for business and economy. As these two variables are independent, we have conducted consequential analysis. Results for business class level booking are in (figure 3). The detailed information about tested values is in Appendix B.

Hospitality Management is a difficult and competitive market, and any lack in customer service can result in defecting customers or the termination of a relationship between a customer and a service provider. In this paper we will look at Hilton a company that has continually ranked amongst the top ranking hotels and continues to improve. Hilton’s customer service ranks as one of the top hospitality providers in the United States. We will look at the history of how Hilton came to be the name brand it is today and some of their process the used to narrow the customer service gaps such as Hilton Honors, the Hiltons Reservation Customer Care, and RESMAX. We will look at how they look at how Hilton manages the customer expectations through the use of employee training and their decreased the customer service gap through employee retention. We will also look as how Hilton co-partnered with Citibank in order to offer its Hilton Honors member additional benefits in order to keep in line with the customer service that the customers have come to expect.

Noone, B. M., & Lee, C. (2011). Hotel Overbooking: The Effect of Overcompensation on Customers’ Reactions t

Customer service is very important element in hospitality industry. A good restaurant or a good hotel always have an excellent service first. Hotels and restaurants put added value in their products and service make guest love it. Some hotels give guest drink when they arrived or prepare small birthday gifts to their loyalty guests. But sometimes hotels spend lots of money to added value of customers’ experience but customers still don’t like their service. So, what’s happening? Hotels gave service and improved service are not customers needed or most needed. That’s the gap between you and your customer. “You know your hotel inside out, but do you ever see it through your guests' eyes? In many cases, there is a disconnect between what hoteliers think

(a) make sure that the way he manages the hotel is appropriate to the way it competes for business;

The researcher opines that by increasing prices a rise in the ADR can be achieved since it is a sum total of room revenue multiplied by occupancy %. However, while the prices are increased the existing guest may be resistance to pay the increased price with the same facilities provided by the hotel.

Research indicates that whilst a price reducing strategy, which is commonly used in response to strong competition, may see short term gains, rarely does it attract and retain new customers (Chan & Wong 2005). In Hong Kong many hotels have reduced their room rates to remain competitive, however the above implies that hoteliers would do better to understand how their services and facilities influence customer satisfaction rather than simply reducing