Pearson New International Edition International pcl tp indd 1

GUEST CHARGES, PAYMENT, AND CHECK-OUT
Group Allowances Strategies
Just as individual guests may experience difficulties that affect check-out, members
of groups may encounter problems, and FOMs must carefully instruct staff about
how to resolve them. Consider the Early Birds, a social club whose senior citizen
members gather twice annually for bird-watching. They travel as a group (20 couples)
in a chartered bus. The group arrived at the Altoona Hotel on Saturday afternoon at
3:00 p.m. (the normal check-in time) for a one night stay. Because the group had
requested rooms to be assigned close together, the rooms were not ready. Some group
members were assigned their rooms about 4:00 p.m., but it was nearly 6:00 p.m.
before all group members were accommodated.
The next morning, most of the group checked out without incident. Mr. and
Mrs. Lundquist, however, complained about the inconvenience of their late check-
in (around 5:45 p.m.). To appease them and to continue checking out additional
guests, the front desk agent agreed to reduce their room rate from $125 per night to
$75. The front desk agent recorded the allowance, Mr. and Mrs. Lundquist
expressed their satisfaction, and their check-out was completed. Ten minutes later,
the Larsons, members of the Early Birds who had checked out before the
Lundquists, approached the front desk and stated that they just finished having cof-
fee with their friends. They politely requested that they be given the “Lundquist
rate” because they were also inconvenienced by their late check-in (at 5:15 p.m.).
Not surprisingly, the lobby was soon filled with 20 Early Bird couples, including
some who had already checked out and some of whom had not. If each couple,
regardless of check-in time, was granted the rate reduction, the lost revenue would
be $1,000 (20 couples with a $50 discount).
This example is not presented to question whether rate reductions are proper to
compensate guests who must wait for their rooms. Rather, the example illustrates
what can happen when, even with the best intentions, an allowance is made for one
group member without considering its impact on the entire group. FOMs must
ensure that staff members follow predetermined and written procedures for group
room allowances and adjustments during the group’s stay and at check-out.