Case Study - Always Read the Small Print

The management at the Dover Inn adds 15 percent to every hotel gift shop purchase when it is charged to a guest's room. The policy is noted only on the guest's final bill at check-out time. Most guests do not notice the charge and just pay their bill. The hotel profits by several hundred dollars a week from this covert policy.

Moreover, gift shop employees are instructed to encourage shoppers to charge their purchases to their guestrooms. It is suggested that salespeople ask, "For your convenience, would you like me to charge this to your room?"

Front desk agents are mandated to remove the additional fees if a guest complains. At check-out time, Mrs. Kramer noticed the additional charge on her bill. She very politely asked Ellen, the front desk agent, what the additional charge was for. Ellen, just as politely, explained the policy, showing Mrs. Kramer the small print.

Mrs. Kramer became incensed. She demanded that the charges be removed immediately. She also said that she was going to send a report of this to her three favorite Internet travel sites. She then insisted on seeing the general manager and told him that aside from the Internet sites, she was going to write letter to all of the local newspapers in the region.

1.What ethical issues are involved with the Dover Inn's policy? What would you advise the general manager to do? What ethical issues are involved for all of the employees concerned? What would you advise the front desk employees? The shop employees? Explain your answers.