A video posted by an actor appalled on being charged INR 442.50 for couple of bananas at a five star hotel got viral recently. With the post a controversial debate raged on various point of views just not the amount charged but was it ethical, logical, legal and more.
While it got the internet buzzing with memes and other hotels also taking a satire nip of the topic, it triggers a lot of questions for hoteliers, hotel operators and the blog highlights some of them. Training and auditing of the standard procedures in hotels is of critical importance with contingencies accounted for. In this case due to an irregular demand of 2 bananas either the team had a choice to not charge for them at all or raise a check for the closest possible alternative. The further course of event is a case study now for the management students 🙂
The hotel teams work diligently on their product and service offering to ensure their reviews and guest feedback peaks. Meeting every guest during the stay and quality check at most of the touch points ensure the service recovery is done in case of any lapse of guests’ expectations not met before the guest leave the premises. Managing a negative review that’s blowing a concern out of proportion to reprimand and malice the reputation of an organisation in service industry isn’t a child play.
In a situation like a management company running the hotel who is responsible to take the liability of such legal issues with the show cause notice and fine slapped in this case. In a contractual arrangement between owners and management company such issues can be handled by indemnity or insurance. However at time management companies do not give in easily on the issue of indemnities and often limit their obligation.
It is a thought provoking and eye opening issue to revisit the modus operandi of hotels or for that matter any service industry operations due to increasing consumer expectation and demands!