When hotel guests reserve rooms, they can often get a guarantee that their rooms will be available, even if they arrive late. This type of hotel guarantee, also known as a "guaranteed-no-show" is an agreement between the hotel and customer that a room will be reserved and held until the customer arrives. In this agreement, the hotel holds the room and the customer's credit card will be charged regardless of they stay in the room.
One caveat in the room guarantee policy is that the hotel may actually choose to sell the room to more than one guest. If the hotel sells the room and the guest does show up, the hotel is responsible for paying for another room. The hotel will attempt to accommodate guests by locating another room at a comparable hotel within the area.
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Over the last decade, the hotel industry has expanded the hotel guarantee agreement to include more features. Many hotel chains offer a guarantee on room type and room preference. This type of guarantee ensures the customer he will receive a specific room type with particular amenities. This includes smoking preference, bed types, and the features such as jacuzzi tubs and floor preference.
Within the hotel industry there are thousands of hotel chains and brands. The hotel guarantee process is typically used by large chains to gain competitive advantage by providing better customer service. The more the hotel can guarantee the more likely a customer will try that brand.
There are multiple ways to make a reservation for a hotel. These include using travel agencies, customers service centers, and Internet websites. Many hotels over a best-available-rate guarantee. This hotel guarantee ensures a customer the quoted rate is the best available rate. Because hotel rates change throughout the day, the best rate guarantee is based on a specific date and time.
Many hotels now offer a satisfaction guarantee. This is a broad-based guarantee based on general conditions of the hotel guest experience. The 100 percent satisfaction guarantee is typically based on room quality, customer service, and the general surroundings of the hotel. If the customer is not completely satisfied, he is refunded the cost of the entire stay.
Customer service is the primary method for obtaining competitive advantage in the hotel industry. Hampton Inn® hotels was one of the first hotel chains to offer a satisfaction hotel guarantee. They have operated this policy for more then a decade. Now many other chains offer the satisfaction program as well.