Regal Carnation Hotel

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Problem and Key Issues

This case introduces the Regal Carnation Hotel in Guam. The perspective is from Steve McKenzie and how he details his experience with the Regal Carnation Hotel. In his depiction of the events that ensued, the fundamental issue consisted of the fact that the hotel followed a fundamentally unsound approach which is termed, “me too”. This decision by the management of the hotel proceeded to be a strong reason why he, as a customer, received poor service, and also why he was a victim of the hotel’s false representation. The “me too” approach coupled with poor timing on a global tourism scale in the territory of Guam, resulted in a pricing plan that did not match the value of the hotel. The hotel industry in Guam has
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Secondly, the hotel received multiple poor reviews and this could also be deemed a serious red flag. At this point it definitely should’ve been an easy decision to search away from this hotel and realize why it was priced so cheaply. The final red flag can be flown high when the disclaimer showcased a required 100% non-refundable reservation fee. This is an easy notification that they shouldn’t do business with them, especially with a reservation that is geographically so remote.
When analyzing the operations side of the Regal Carnation Hotel, we thought specific questions could clarify the situation. The first question we posed was “Why would the hotel offer such a low price to customers if they are trying to compete with higher end hotels on their website?” When a hotel wants all the money up front with no possibility of a refund, they’re sending a discrete yet emblematic message to the prospective consumer that would seem to be a prototypical bait-and-switch operation. Because of the remote location, customers wouldn’t be able to verify and match the value of the hotel to the perceived market. Customers commit to the hotel as soon as they set their reservations, and almost undoubtedly they are disappointed and become a subject of a unique case study.
The second question we posed was “Did the Regal Carnation purposely falsify itself on the website?” According to the case, it includes that the tourism industry

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