Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A hotel manager has set a rack rate for all rooms in the hotel of $149 for next year. Corporations, conventions, and conference groups were

A hotel manager has set a rack rate for all rooms in the hotel of $149 for next year. Corporations, conventions, and conference groups were advised that early next year the rack rate charged could be reduced to a lower rate of $99, and the potential reduction will depend on the volume of business they provide. Travel agencies, which book a large number of hotel reservations for independent travelers, were advised that room rate discounts are available for $139, $129, and $119, with restrictions. The travel agencies were also advised that rooms booked at the $149 rate would increase their commission to 15%, rather than the normal 10% for a discounted rate reservation. Individuals that telephone the hotel directly for a reservation are first quoted the $149 rate; however, employees booking reservations have been trained to lower this rate to $139, $129, and $119, but never lower than $119. In addition, room-booking employees are required to advise potential guests of the restrictions that apply at each rate level. Discuss the ethics of this situation.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Short Term Financial Management

Authors: Terry S. Maness, John T. Zietlow

2nd Edition

ISBN: 0030315131, 978-0030315138

More Books

Students also viewed these Finance questions

Question

7. List behaviors to improve effective leadership in meetings

Answered: 1 week ago

Question

6. Explain the six-step group decision process

Answered: 1 week ago