Hotel Managers will tend not to embrace tend not to embrace this venture for a number of reasons. Their main reason concern will be that they have very little or no control over their property or employees. This power has been taken away from managers and given to employees. This is an important decision that they believe they should be the one to make as it impacts the bottom line and it may be a reflection on them. They may feel that they can not react in the best interest of the hotel because what’s in the customer’s best interest is usually not the same as the company’s best interest. Others concerns by the managers may be:
•Fear of abuse by the customers. Customers have the right to invoke the guarantee whether or not the hotel really did anything wrong. A dishonest customer may see this as a flaw if the necessary controls are not in place and use it to their best interest •Guarantees can send the wrong message to customers. It might give the impression a firm is begging for business. The guarantee could even introduce an element of doubt into the customers' minds about the ability of the firm to deliver on the promised level of service. •There are many external uncontrollable variables. E.g. weather, location, etc.
When a customer makes a complaint about the level of service he receives, he expects a quick, suitable resolution. A customer who is not aware of this guarantee offered by Hampton will express shock and surprise that a company will be willing to give away revenue and an opportunity at profits just like that. What will make it even more astonishing is that Hampton has a competitive advantage due to this guarantee therefore this will not happen at any other hotel. However, he will be impressed that the complaint has been resolution in a quick way and that it was done with a regular employee and not a member of senior management. The chain reaction of the guarantee will be that a lasting...