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Ethics Case The Siesta Hotel is owned by several individuals who also manage its oper- ations. These management team members are individuals of high

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Ethics Case The Siesta Hotel is owned by several individuals who also manage its oper- ations. These management team members are individuals of high integrity with a strong commitment to guest service. They realize that making a profit is necessary, but they also recognize the importance of product qual- ity and customer satisfaction. In the hospitality industry, ethics is a critical issue for top manage- ment, as are operational, financial, and promotional considerations. Any (continued) (continued) hotel's business is to sell the okupancy of its rooms. Any room occupancy that is not sold for the night represents revenue that is lost forever. Over- booking occurs when a hotel sells more room occupancy than is actually available. Overbooking is very common among hotels because of no-shows and cancellations. The managers of the Siesta Hotel do allow the hotel's front office staff to overbook. Overbooking does not necessarily result in the hotel's inabil- ity to honor reservations. However, when overbooking does result in the inability to honor a reservation, the procedure for walking a guest is most gracious and generous; the hotel will arrange and pay for accommodations at another hotel, arrange and pay for travel to that hotel, and pay for din- ner for the walked party. 1. Ethics is composed of two attitudes: ideological and operational. (Ideo- logical attitudes pertain to beliefs and convictions. Operational attitudes pertain to actual actions or practices.) Discuss the difference between these attitudes as related to this case. 2. Some hospitality managers are affected by ethical ignorance and pro- fessional cynicism. (Ethical ignorance refers to the state of not knowing or of being unaware. Professional cynicism refers to the state of having a pessimistic or distrustful attitude.) Discuss these factors as related to this case. 3. Discuss why hospitality managers may find that dealing with ethical issues on the job can be stressful.

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