Advances in Business, Operations, and Product Analytics: Cutting Edge Cases from Finance to Manufacturing to Healthcare

8. Strategies for Managing Service Delivery Gaps and Service Recovery

Ajith K. Thomas, Saintgits Institute of Management, Kerala, India

The hotel rooms in Bangalore, India, were running full due to the annual air show event at the parade grounds. SM International, a four-star luxury hotel mostly patronized by corporate middle management executives, was running at minus occupancies. Minus occupancies occur when the hotel has a certain number of rooms to sell and has confirmed bookings for a higher number of rooms than is available at the hotel.

SM International has 94 rooms, and the reservations on the books were for 103 rooms for that day. This meant that they had to arrange for nine more rooms by the end of the day, as all bookings had been ...