DO YOU THINK THE BENEFITS WILL OFFSET THE COSTS OF THE NEW HILTON CANCELLATION POLICY? WHY? 2. DO YOU THINK THE NEW HILTON CANCELLATION POLICY
CASE STUDY #3 - HEADQUARTERED IN McLEAN, VIRGINIA. HILLTON
WORLDWIDE (AND MARRIOT) ON JANUARY 1, 2015, IMPLEMENTED A NEW
POLICY THAT REQUIRES CUSTOMERS TO NOTIFY THE HOTEL THE DAY BEFORE
THEIR ACTUAL SCHEDULED ARRIVAL TO AVOID HAVING TO PAY FOR THE
ROOM.
THE POLICY REVERSES A LONG TRADITION OF ALLOWING CUSTOMERS TO
CANCEL THEIR RESERVATION “UP TO 6PM THE DAY OF ARRIVAL WITHOUT
PENALTY.
HOTEL DEMAND IN 2014-2015 HAS EXCEEDED SUPPLY IN MANY CITIES, GIVING
HOTELIERS THE UPPER HAND. ANOTHER MOTIVATION FOR THE NEW POLICY
IS THAT HOTELIERS DESIRE TO STIFLE THE USE OF APPS SUCH AS YAPTA THAT
TRACK HOTEL PRICES AND, WHENEVER A RATE DIPS. APPARENTLY A
GROWING NUMBER OF TRAVELERS REBOOK AT A LOWER RATE AND CANCEL
THE COSTLIER RESERVATION, LITERALLY RIGHT-UP UNTIL CHECK-IN TIME.
PENNY-PINCHING TRAVELERS ARE INCREASINGLY USING SUCH TOOLS, AND
HILTON IS SEEKING TO STIFLE THIS PRACTICE.
BIG RIVALS TO HILTON (AND MARRIOTT) ARE STAYING THE COURSE,
HOWEVER, WITH TRAVELLER-FRIENDLY CANCELLATION POLICIES INCLUDING
SHERATON, STARWOOD, WESTIN, FOUR POINTS, INTERCONTINENTAL,
CROWNE PLAZA, HOTEL INDIGO, HOLIDAY INN, AND OTHERS.
SOME CUSTOMERS NOW SAY THEY WILL AVOID MAKING A RESERVATION AT
ALL IF THEY WILL BE CHARGED FOR A ROOM THEY DID NOT USE.
WHENEVER, THEIR PLANE GETS DELAYED, OTHER CUSTOMERS NOW SIMPLY
USE LAST-DAY BOOKING SERVICES SUCH AS HOTEL’ TONIGHT. OTHERS SAY,
THEY WILL BOOK WITH SHERATON OR WESTIN.
YET, HILTON SAYS THE INDUSTRY NEEDS TO PREVENT THE RAPIDLY
GROWING PRACTICE OF TRAVELERS, BOOKING A HOTEL AT THE LAST MINUTE
AFTER CHECKING ONLINE FOR LAST -MINUTE DEALS IN THE AREA.
QUESTIONS
1. DO YOU THINK THE BENEFITS WILL OFFSET THE COSTS OF THE NEW
HILTON CANCELLATION POLICY? WHY?
2. DO YOU THINK THE NEW HILTON CANCELLATION POLICY IS
ETHICAL? IS IT LEGA? IS IT PRACTICAL?
3. WHAT WOULD BE A MORE EFFECTIVE CANCELLATIONPOLICY FOR
HILTON?
4. HOW SHOULD A COMPANY SUCH AS HILTON DECIDE ON NEW
POLICIES
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