Note: This whole discussion question relates to the course subject of Hospitality Industry Law. Read that small paragraph first before answering those discussion questions.

 

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.
3. Who do you feel would be more embarrassed by the disclosure that you did so, the planner or your hotel?
4. If you decided to do so, to whom should you disclose Mr. Pingston's "booking bonuses"?
5. The CEO of the planner's company?
6. The ASHT board of directors?
7. The membership of the ASHT?