Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Overbooking

No description
by

on 19 November 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Overbooking

Is it ethical to overbook reservations at a restaurant
~Is it ethical to overbook reservations in a restaurant?
Overbooking
At a business standpoint
overbooking is a very smart idea.
Overbooking
So here's an explanation
Lets say you have a restaurant that can seat 40 people at one time
And the time for each individual or group to order, consume, and leave for the next group to sit down is 1 hour
Then if the price of each meal per person is an average of $20
And if the cancellation rate is around 15%
6 cancellations per hour
$120 in lost revenue per hour

In a four hour night you lose...
$480
If the cancellation rate is at 25%
the need for overbooking would become a necessity.
10 people would cancel their plans every hour adding to 40 for the night

$800
The total loss revenue from cancellations...
What is the meaning of ethics?

A dictionary would define ethics as moral principals that humans abide by.
Overbooking reservations in a restaraunt can cause some customers to have to wait sometimes up to an hour to be seated.
This can cause customers to be upset
and probably never come back to this restaurant. The manager could always
pull out his gift card book....
But this is where ethics come
in. This customer could have had
a special evening planned, for an anniveresary or maybe even a proposal. He planned this date for quite a while. He made his reservation, called ahead to make sure they had tables. He shows up, and comes to find that the restaraunt is full and he would have to wait an hour for a table to open up.
As a customer, I would be appalled at this practice of overbooking reservations.
Lucky for me the choice is easy.
I was asked to determine the ethicality on the managers point of view.
And as a business practice, this is a smart move to make.
As long as the restaurant is full of hungry costumers, money will be rolling in.
Full transcript