Revenue Management Answers Please!

Increasingly, information about hotels is distributed via Web 2.0 sites. Unfortunately, some of the information posted on such sites is not accurate or fair to hotels. Assume that you are the RM for a property that has just received an extremely negative customer review. The review was written by Ray Snipe, a previous hotel guest at your property. Mr. Snipe's review has now been posted on TripAdvisor.com. Some of the facts stated in this consumer's review are true, while others are not. The reviewer ends the long review by writing and posting the following: "The staff wasn't unfriendly, but they weren't particularly friendly either. It's in a relatively safe neighborhood, so there is that. But I would only suggest you stay here if you are absolutely desperate. Other than that, I recommend you spend your money at a nice hotel." Discussion Questions As the property RM, please provide a critical answer to these three questions: 1. How would you respond to Mr. Snipe on TripAdvisor? What are the key content elements that you would include in your response? Why are these elements important to include? 2. Would you or would you not compensate Mr. Snipe? If so, what type of compensation would you offer and how (i.e, how you will communicate it to Mr. Snipe)? 3. What would be the implications of your compensation (or no compensation) decision on (a) revenues, (b) operations, and (c) customer satisfaction? Consider Mr. Snipe AND future guests reading both the bad review and your