Alin Toncz
Colonnade Hotel and Resort Analysis
Week 6 Assignment
Prof. Joel Bunkowske

As per airline industry, the hotel industry is using an overbooking policy to ensure that no rooms are left open during any season. The policy states that when the customer calls, he is supposed to secure his room with a credit card and in case of a no- show, the customer will be charged the amount for the room if the room will not be rented out to a different party. While this might present an inconvenience for both parties reserving the room, the hotel should be prepared to either transfer one party to a different room or be ready to give the customer left out a free night’s stay on another day if the hotel is booked entirely.
Problem Identification: Mr. Ward stated that he booked the hotel room 8 months in advance with his entire immediate family, including his brother and his family and his parents. When Mr. Ward arrived, Kathy, the front desk manager, told him that all rooms are booked and that his and his brother’s family would have to stay at a different hotel. Kathy had explained to Mr. Ward the policy of the hotel regarding overbooking policy and how it intends to cover no-shows, which is a standard procedure in the hotel industry. This infuriated Mr. Ward since they had to spend lots of time coordinating meeting times with the entire family. Unfortunately, giving Mr. Ward a free night’s stay at the Colonnade was not good enough. When he went home, he posted his displeasure on Tripadvisor and tweeted his negative comments on Tweeter. At this time, an e-mail will be sent to Mr. Ward with a plan of action that will persuade Mr. Ward to change his negative review about the Colonnade Hotel.
What Can Be Improved: Management of the Colonnade Hotel is willing to review the overbooking policy and recommend that at the booking time, the customer will be informed that he will