Operations Management: An Integrated Approach, 5th Edition

CASE: Scharadin Hotels

Scharadin Hotels is a national hotel chain started in 1957 by Milo Scharadin. What started as one upscale hotel in New York City turned into a highly reputable national hotel chain. Today, Scharadin Hotels serves over 100 1ocations and is recognized for its customer service and quality. Scharadin Hotels are typically located in large metropolitan areas close to convention centers and centers of commerce. They cater to both business and nonbusiness customers and offer a wide array of services. Maintaining high customer service has been considered a priority for the hotel chain.

A Problem with Quality

The Scharadin Hotel in San Antonio, Texas, had recently been experiencing a large number of guest complaints due to billing errors. The complaints seemed to center around guests disputing charges on their final hotel bill. Guest complaints ranged from extra charges, such as meals or services that were not purchased, to confusion for not being charged at all. Most hotel guests use express checkout on their day of departure. With express checkout, the hotel bill is left under the guest's door in the early morning hours and, if all is in order, does not require any additional action on the guest's part. Express checkout is a service welcomed by busy travelers who are free to depart the hotel at their convenience. However, the increased number of billing errors began creating unnecessary delays and frustration for the guests who unexpectedly needed to settle their ...