Mandalay Bay Case Study, The Mandalay Bay Conundrum

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Read the Mandalay Bay case study “The Mandalay Bay Conundrum” on pages 397-399 in your text.

Write a two-page paper, typed and double-spaced, using the template attached below, in which you respond to each of the following questions. Include a 200-word summary highlighting the importance of this type of competitor analysis. Support your response with at least three sources, two of which must be scholarly sources from the West Online library.

  • Should Mandalay Bay Resort and Casino and other Vegas hotel destinations be concerned with service marketing concepts such as customer loyalty and retention? Please explain your answer.
  • As a guest of Mandalay Bay who experienced this situation, what do you think would be a reasonable expectation for the hotel’s service recovery efforts?
  • Evaluate Mandalay Bay’s service recovery efforts from the perspectives of distributive justice, procedural justice, and interactional justice.
  • What recommendations would you provide the management of Mandalay Bay to handle future situations such as the one described in the case?

Include a summary and a minimum of 3 sources.

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The Mandalay Bay Conundrum Background Mandalay Bay Resort and Casino in Las Vegas, Nevada, promotes itself as a 39-story luxury hotel offering unmatched luxury, fine dining, renowned entertainment, and per- sonal service. The main hotel boasts over 3,300 rooms, a 135,000-square-foot casino, a variety of water attractions, including a wave pool and a lazy river, nongaming entertain- ment options such as the House of Blues, and 24 restaurants and cafes. Mandalay Bay is owned by MGM Mirage and is connected by a free tram service to its sister properties, Excalibur and Luxor. Professor Taylor (ironically, a services marketing professor) and his wife were looking forward to spending four nights at the resort and casino and spending some time with his sister and brother and their respective spouses who live across the country—a mini-family reunion was the purpose of the trip. Professor Taylor’s brother, Ted, had received a direct mail piece from Mandalay Bay months earlier that offered a promotional rate of $69.99 a night (a discount of $30 a night off the regular room rate). After contacting his siblings and agreeing on a date, Ted im- mediately booked three rooms for each of the three couples, and the mini-family reunion was set. Upon checking into the hotel in August, Ted and his brother-in-law, Bill, renegotiated all three couples’ accommodations. The deal resulted in a double upgraded room for each couple consisting of a 765-square-foot mini-suite, a Jacuzzi bathtub, and views of the Vegas strip. The additional cost for these upgrades was $25 a night—a price everyone agreed was a very good deal. Professor Taylor and his wife arrived at the hotel a day later than the other two cou- ples who had rooms on the 10th floor. Due to availability constraints, the professor and his wife were given a room on the penthouse level (floors 35–39) of the hotel that are uniquely numbered as floors 60–64. This room was the same size as the other two cou- ples’ rooms; however, the penthouse floors came with the added advantages of an express elevator and enhanced views of the Vegas strip due to being placed at a higher elevation. Everyone was very pleased with their rooms and all the accommodations available at the Mandalay Bay Resort and Casino. The couples attended shows, took advantage of the hotel’s swimming pools, walked the strip, enjoyed dining together, and dabbled in the various hotels’ casinos— many of which are owned by the MGM Mirage. The days passed quickly, and the couples often found themselves returning to their hotel rooms around 3:00 a.m. each night. The Situation On the second night of their stay at Mandalay Bay, the professor and his wife returned to their room, 60201, and noticed a slightly foul smell present in their room that had not been there earlier in the day. The couple went to sleep that night and never thought about it the next day because the smell was no longer present in the morning. Upon returning to their room at around 3:00 a.m. on the third night, the foul smell had returned. By 3:30 a.m. the smell had so greatly intensified, the couple was nearly over- come with nausea and called security to investigate. A young security employee noted that the smell was not present anywhere else in the hallway except for directly outside of Room 60201. Not sure what to do, the young security employee, covering her nose (the smell was really bad), called her manager to help investigate further. The security manager, with finger under nose, entered the room and immediately called for the hotel’s engineering staff (maintenance). The security manager briefly apolo- gized, then called the front desk to arrange for another room for the professor and his wife. Engineering entered the room with spray deodorizers in hand and attempted at least to mask the odor. Engineering believed that a gas bubble had built up in the hotel’s sani- tation system, and the smell was the result of a “burp” that was directly venting into Room 60201. A new room was provided for the couple, and a bellman helped pack up their belongings around 3:45 to 4:00 a.m. Other security guards were now present in the hallway, with hands covering their noses and mouths as they attempted to get “upwind” (their words) of “the smell.” The new accommodations for the professor and his wife were located one floor above their existing room (still on the penthouse floors) and were quite nice. In fact, the room was no longer a room—it was now a five-room suite. The new accommodation was approximately 1,700 to 2,000 square feet, consisting of a full dining room, wet bar, living room, entertainment options including a large plasma television and enhanced audio capabilities such as docking station for an iPod with speakers located throughout, a four poster bed, electronic curtains, and two bathrooms (including a steam room). The regular price for the room ranged from $350 to $500 per night (the professor and his wife were not charged the additional price). The professor and his wife spent their last two nights at Mandalay Bay in this suite. No one from the hotel initiated contact with the couple after they were placed in their new accommodations. Other Notable Considerations • Although nice Las Vegas hotel rooms can be obtained at reasonable rates, guests spend the majority of their “Vegas budget” on airfare, child and/or pet care, meals, entertainment (including gambling and show tickets), car rental and/or taxi fees, and retail shopping. The vast majority of meal and entertainment dollars are spent on property. It would not be unreasonable to assume that a couple could easily spend $1,500 to $2,000 for a five day/four night stay. • The professor and his wife vacation in Las Vegas approximately once or twice every five years. • The professor’s brother-in-law talked to the manager on duty the next morning who had no idea the situation had taken place. The manager advised that the guests affected should file a formal report with security. Security was contacted, and took a formal report, but were visibly confused as to why they were involved. • The professor’s wife complained of nausea and a headache that lasted for approxi- mately 12 hours after the incident. • The professor’s wife called the front desk to inquire about the cause of the foul odor and was instructed to contact the Risk Management Office. Risk Management offered to compensate the couple with two free nights at Mandalay Bay that could be used anytime in the next two years. When asked if they could provide accommodations that were similar to the couple’s original room (765 square feet), the Risk Manage- ment Office noted that they could not guarantee similar accommodations. • Mandalay Bay was to send the vouchers for the two-night stay to the home of the pro- fessor and his wife. Several weeks have passed, and the couple received no mail from Mandalay Bay. Running head: TYPE A SHORT TITLE IN ALL CAPS HERE Title of Your Paper Your Name School Your Course Name Your Course Number Your Professor’s Name Due Date 1 PUT THE SAME SHORT TITLE IN ALL CAPS HERE 2 Title of Paper Here--Not Bold or in All Caps Click your cursor here and start to type. It automatically will type in Times New Roman, 12-point font, and double-space the text. The indent of one-half inch is set here, too. To start a new paragraph, just hit the Return button once. It will keep the format going for you without adding extra spaces between paragraphs. For more information on formatting your paper, review the Writing Style Handbook, pages 6-7, by clicking this link: For help using this template, click this link: Level One Heading If you have different sections in a paper and want to use headings, replace the Level One Heading words above with the words for your heading. The heading must be centered, in bold font, with uppercase and lowercase letters. Level Two Heading If you have a heading that is a subtopic for the Level One Heading, replace the Level Two Heading words above with the words for your heading. The heading must be flush left margin, in bold font, with uppercase and lowercase letters. Level three heading. If you have a heading that is a subtopic for the Level Two Heading, replace the Level three heading words above with the words for your heading. This heading must be indented, in bold font, with only the first letter of the first word capitalized. A period follows this heading. For more information on headings, you can review the APA’s Frequently Asked Questions (FAQs) on APA Style® by clicking this link: APA Style® FAQs. PUT THE SAME SHORT TITLE IN ALL CAPS HERE Conclusion The last section of a paper is a conclusion. It sums up what has been said and does not add new information. The References page follows on a new page. To see a short, sample paper, click this link: 3 PUT THE SAME SHORT TITLE IN ALL CAPS HERE 4 References References are placed in alphabetical order on the References page. Each reference must have at least one corresponding in-text citation in the body of the paper, and each in-text citation requires a complete reference on the References page, To add a reference here, click your cursor at the beginning of this line and start to type. It automatically will type in Times New Roman, 12-point font, and will double-space the text. As you can see, the indent for the References page is different than it is for the body text. This is called a hanging indent and it is set at one-half inch. To start a new reference, just hit the Return button once. It will keep the format going for you without adding extra spaces between references. Enjoy! If you have a reference provided by Reference and Citation Generator, the Online Library, or another APA resource, you may paste it here. To try to maintain this format, copy the reference text, put your cursor at the start of the line where you want to add the reference, right click on your mouse or trackball, and choose the option under “Paste” in your software program that best matches this format. You may see differences so be sure to check. For more information on writing and formatting references, review the Writing Style Handbook, pages 5-13, by clicking this link: To see a short, sample paper, click this link:
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