Question

Assume that you are the group sales manager at the Claremont Hotel. John Pingston is one of your clients. Mr. Pingston, a professional meeting planner, works for a meeting planning company that was selected by the American Society of Hospitality Teachers (ASHT) to choose a hotel for that society’s annual meeting. At your hotel, like many others, the purchase of all hotel room nights is accompanied by the awarding to the buyer of major airline frequent flier credits (points). Mr. Pingston agrees to select the Claremont for the ASHT meeting but then states that, as the person responsible for “buying” the rooms, the airline award miles that accompany the room sales should be granted to him personally rather than to the ASHT, and, in fact, he strongly implies that if he is not granted the frequent traveler airline miles, he will move the contract for the group’s 700 total room nights to one of the Claremont’s competitors.

1. Would you grant the mileage award points to Mr. Pingston? Why or why not?

2. Assume that you granted the bonus miles to Mr. Pingston. a. Who do you feel would be more embarrassed by the disclosure that you did so, the planner or your hotel? b. If you decided to do so, to whom should you disclose Mr. Pingston’s “booking bonuses”?

i. The CEO of the planner’s company?

ii. The ASHT board of directors?

iii. The membership of the ASHT?

Answer 1

Answer:-

In my opinion, no orders must be granted to Mr. Pingston. This is due to the fact that he is employed in AHST who is the actual client and thus if there is ay kind of requests then these must be no personally by Mr. Pingston. Rather the organization should do it. This case shows that Mr. Pingston is an employee of the AHST and he has to follow the instructions and there is no option or requests made by the firm to grant some bonuses. As if the bonuses are provided to Mr. Pingston, it will incur some losses to the business which could result in refusing some of the regular customers, thus any request should not be entertained.

Answer:-

CEO will be the individual who will be facing a lot of embarrassment if the bonuses are provided to Mr. Pingston. This is due to the fact these initiatives can create some problems in the business relationship between the hotel and the airline. We know that the main concern of any CEO is to protect and promote the interests of the stakeholders and thus any initiative which could result in the negative outcomes for the organization should not be accepted by the CEO.

Answer:-

Mr. Pingston’s “booking bonuses” must be communicated to the CEO of the planner’s company. This is due to the fact that if this is done that CEO must ensure that these kinds of initiatives do not result in any negative effect on the organizational productivity in near future. When this information is provided to the CEO, the required information can be facilitated to the management board without missing any critical time so that the process can be further carried. It is the responsibility of the CEO to ensure the sustainability of the business and for this, all the information must be given to them.

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