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.
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