Reference no: EM133035176

Arnold Jackson owned a large sheep farm in New Zealand. After listening to a presentation by a Canadian trade delegation regarding business possibilities in Canada, he decided to travel there to check out business opportunities for his family's beautiful handmade woollen products and his organically raised lamb.

His first stop was in a large Canadian city, and he chose to stay in a large hotel in the downtown area because he was an inexperienced traveller and nervous about being in a foreign country. He quickly discovered that Canada was like home-the Canadians he met were friendly and enjoyed entertaining him. He made some excellent business connections and enough sales to pay for the trip. However, when he checked out of the hotel, he was shocked to find that his total bill was approximately $400 more than the $1720.55 he had anticipated. Fully expecting additional charges for tax, he was still surprised to find a "promotion tax," and surcharges for housekeeping and room service, for restocking the mini-bar (which he had not opened), and for a high-speed internet connection.

When he went to the assistant manager to question these items, he was told that every hotel in the city added these charges and nothing could be done to eliminate them. Not wanting to make a scene or miss his flight, Mr. Jackson paid the bill and left, taking with him a very poor memory of what should have been a positive trip.

1. What was the main cause of Arnold's dissatisfaction?

2. Was there any course of action the assistant manager might have taken immediately to reduce Arnold's distress?

3. What might the hotel do to ensure that other customers do not have the same experience?

4. What might be the long-term negative impact of the taxes and surcharges Canadians are adding on to tourism products, especially hotels, restaurants, and air travel? Is there any way the negative spin might be contained?