Performance Task No.

_____________
Submitted to: Jennifer Gorospe- Sese

Name:Isabelle O. Olivar Section:HCP

FRONT OFFICE
CASE STUDY NO.2
100 Percent Occupancy

Kate Wilson lives in New Jersey but commutes to Manhattan two hours each way to
work at a prominent New York City hotel as one of four executive-level concierges.
She is black, in her thirties, and has a very positive attitude about life. She typically
works the 6 A.M. to 2 P.M. shift. Her warmth and optimism provide a pleasant start
to a guest’s day.

The U.S. Tennis Open, which occurs for three weeks at the end of August and
beginning of September, was taking place. Thousands of players, media, and
spectators from around the world had descended on New York to see the
games. This hotel, along with most other nearby hotels, was at full capacity, and the
general manager required that they have 100 percent occupancy for those three

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weeks. In this situation the reservations desk overbooked the hotel by a certain
percentage and also took walk-ins. Front office personnel had to check in the correct
balance of guaranteed reservations and walk-ins to ensure that the hotel was 100
percent full. However, if they did not have enough rooms for guests with
guaranteed reservations, they had “walk” them to another hotel and pay that
hotel’s rack rate. It was a very stressful situation for front office personnel.

Kate had switched shifts with another concierge, so she was working the late shift
on the executive level, from 3 P.M. to 11 P.M. The executive-level floor is popular
because it has a larger rooms, bigger baths, and an executive floor lounge which
serves a continental breakfast, afternoon cookies and tea, and evening cocktails. At
the hotel, guests who know they are staying on the executive level can check in
either at the front desk, which is in the lobby, or with the executive concierge.

As the evening progressed, Ben, the front office manager, made a decision to sell
rooms to walk-ins assuming that guests with guaranteed reservations were not
going to arrive. By 10 P.M. the hotel was 100 percent occupied except for two rooms
that were being held for guests who might yet arrive with guaranteed reservations.
Ben chose not to hold any rooms on the executive-level floor, because “walk-ins”
paid the rack rate of $250 for these rooms. This way not only would occupany be
100 percent but the average room rate would increase. Although he ran the risk of
not being able to provide a room on the executive level for a guest with such a
guaranteed reservation, Ben felt that the 100 percent occupancy and average room

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 Performance Task No. _____________
Submitted to: Jennifer Gorospe- Sese
rate increase were more important.

At 10:40 P.M. a guest came to the executive-level floor to check in. After checking in
the computer, Kate told the gentleman that executive level floor was completely
occupied but offered him a room on another floor. The gentleman in a very
condescending manner, pulled out his confirmation letter and restated the he had a
reservation on that floor. Having stayed on the executive floor before, he was
adamant about his reservation. Once again, she told him that he could have another
room. Very angry, he demanded to see the manager. Kate called Ben, who also
happened who also happened to be the manager on duty that night.

Ben went to the floor quickly and described in more detail the situation at the hotel.
He explained the importance of achieving 100 percent occupancy, and given that it
was so late at night they did not think he would keep his reservation. Realizing that
the guest was still dissatisfied, Ben reiterated that he would get a room on the
executive level floor as soon as one became available. In an attempt to appease this
customer, Ben granted him all executive-level privileges and promised that his first
night’s stay on the executive level would be complimentary. The man agreed to stay
in one of the other regular guest rooms, but made a vow that he would speak to the
other regular guest rooms, but made a vow that he would speak to the general

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manager in the morning. At the end of her shift, Kate went down to the front office
to drop off her paperwork and noticed that there were several people at the front
desk attempting to register in the fully occupied hotel. She was glad to be going
home.
It was not until two days later that the man was placed on the executive-level floor.
He did not seem angry at Kate, but he was also not friendly. During his remaining
three-day stay on the executive-level floor, he was brisk with her and refused to
engage in a relaxed conversation, regardless of Kate’s efforts.

1. Is it effective to attempt to achieve 100% occupancy? Why?

-In this situation the attempt to achieve 100% occupancy led to more
dissatisfied guests. The ideal occupancy rate for a hotel is 70%-95% because
this allows hotels to maximize revenues and minimize costs. The 100%
occupancy is actually much more labor intensive and would eventually lead to
an increase in costs.

2. What are some of the costs incurred in this situation?

-The manager prioritized the revenue of the hotel and did not think of how it
could affect the guests. It was also assumed that some guests with reservations
would not show up, so they just carelessly offered rooms to walk-in guests. This

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 Performance Task No. _____________
Submitted to: Jennifer Gorospe- Sese
resulted to more dissatisfied guests especially those who had a reservation
beforehand. A lot of guests were then not accommodated because the hotel was
already fully occupied and had no intention of prioritizing guests with
reservations. The situation also caused a lot of stress to the staff that were
involved.
3. What would you have done differently?
-I would have not attempted to achieve 100% occupancy knowing the risks that
would unfold, especially since it means that there would be a high possibility
that a lot of guests would not be accommodated. I would also never a assume
that guest with reservation might not show up and then proceed to offer the
room to another guest without proper confirmation. I would also accommodate
those who have reservations first and ensure that all of them are provided with
the rooms that they were assigned to before anything else.

4. What was the primary cause of the problem?

-The primary cause of the problem was that the manager did not prioritize the
guests with reservations and just assumed that they would not show up.The
manager instead decided to sell reserved rooms to walk-ins just so that the
hotel could earn more revenue without thinking of the consequences that could
follow.

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5. Would you agree?: “Ben felt that the 100 percent occupancy and average
room rate increase were more important.”
-No, I don’t agree with what the manager has stated because he failed to
prioritize the guests and their needs. He only thought of making more money
and did not care to think about how it could affect the guests. The guest should
always come first before anything especially those with reservations.

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