OUR LADY OF FATIMA UNIVERSITY

Valenzuela City • Quezon City • Antipolo City • Cabanatuan • Pampanga

Case Study: A Breach of Guest Privacy

Legal Aspect in Tourism and Hospitality

Members:
Patricia Ann Tayawa
Verginia Largo Montecalvo
Ry Agustin Orqueza
Ley Fiqueroa
Justinne Lexie Nicdao
Lhara Angelina Santos
Mac Joshua David
Kyle Padilla
Justin Alexis Santiago
Christopher Bautista
 OUR LADY OF FATIMA UNIVERSITY

Valenzuela City • Quezon City • Antipolo City • Cabanatuan • Pampanga

CASE STUDY:
The case discusses how a hotel, Panam Classic breached a hotel guest’s privacy by
releasing pertinent and confidential information to an external individual. Even
though the hotel invests in guest satisfaction and employee training, inappropriate
communication, and inadequate training led to a breach of its guest’s privacy. This
resulted in guest dissatisfaction and could have led to legal problems for the hotel.
The hotel had to evaluate its policies and guest privacy and assess its training
programs and communication within the organization. The hotel is now tasked
with doing service recovery, in a bid to uphold its reputation.
Read and scrutinize the case. Afterward, answer the questions at the bottom part
for your analysis.
Case Study Questions
Question 1
In a one (1) page analysis, give a brief description of the case while highlighting
the key ethical, guest privacy, or customer service-related issues in the case.
In my analysis, there are a few issues with overseeing visitor security and the front
work area division. For this kind of work, the hotel industry must have the training,
and it is important for celebrities who check in as VIPs or high-profile guests to
protect their privacy. They explained that lodging establishments have a duty of
care to their guests, which means protecting their privacy and safety and ensuring
that the appropriate privacy policies and procedures are clearly explained to guests
and followed. In the case of Mr. Morocco, he wants their job to be better and wants
to spend his time attending, among other events, business meetings, conferences,
dinners, cocktail receptions, and community fundraisers.
Question 2
Do you think that this is a case of ethics gone wrong, a case of guest privacy or
was it a case of bad customer service, or a combination? Please provide reasons for
your response.
I believe that Mrs. Morocco and Mr. Morocco have a misunderstood relationship
because Mr. Morocco first reminds his wife that he devotes his time to her work
and is busy as a result. I also believe that the front desk holds the guest's privacy
information. Based on the circumstances, Mr. Morocco also informed the front
desk of important meetings related to their work and insisted that his privacy be
protected. He works well at the hotel, so the hotel was wrong when they failed to
remind Ms. Morocco that her husband wanted to concentrate and didn't want to be
interrupted by other guests. In a nutshell, miscommunication, improper hotel
services, erroneous calls, and miscommunication between guests affect everyone.
 OUR LADY OF FATIMA UNIVERSITY

Valenzuela City • Quezon City • Antipolo City • Cabanatuan • Pampanga

Question 3
What led to the challenge that Panam Classic is currently facing? Give reasons
for your answer. Provide a discussion on how Panam Classic could have avoided
this situation.
As a result of the Sudden Industry hosting one of the largest technology
conferences in the eastern region of Panam Bay in November 2010, Panam Classic
Resort is currently confronted with the issue of how to accommodate guests.
Because Mr. Morocco wants the Panam Classic Resort to be known for having
better management and staff, he wants more room supplies and amenities.
However, the front desk is having problems with guest privacy and safety because
Mr. Morocco wants to work and not be disturbed by meetings. Additionally, they
have issues with guest numbers because they have made the wrong call, which
affects their privacy data or the system they have. For Panam Classic to take the
appropriate action, which is to provide the guest with some drinks and a bouquet
that conveys their sincerity regarding their erroneous call to her wife and their
misinformation regarding Mr. Morocco's busy schedule, they remind staff
members not to disturb him. What we can learn from this is crucial for maintaining
communication between the hotel's policies and the requirements of customer
satisfaction, and the actions that resulted in an evaluation of the steps that can be
taken to rectify the situation.
Question 4
Describe strategies you would put in place to protect your guests’ privacy and
protect your business. How would you go about searching for a solution?
Since Sudden Industry hosted one of the largest technology conferences in the
eastern United States in November 2010, Panam Classic Resort has been faced
with the challenge of figuring out how to accommodate guests. One of the
strategies I would employ to safeguard both our business and the privacy of our
guests is to hire employees who are dedicated to their work. Why is it important to
be flexible and hardworking in the industry? Because, in my opinion, in the
industry, you need to be focused on what you do, and you should have to give your
best to show it at work. As a result, I believe I have solved the company's problem:
every department and organization needs to be prepared, focused on the company's
goal, and hospitable and gentle. In every hotel and restaurant, we all know that
customers and guests are important, so we need to protect their data and privacy to
avoid problems in the company.
 OUR LADY OF FATIMA UNIVERSITY

Valenzuela City • Quezon City • Antipolo City • Cabanatuan • Pampanga

Question 5
Do you believe Panam Classic can recover from this situation? If yes, what are
some service recovery strategies that can be used? Why would the service recovery
be important?
Yes, and I believe that one of the service recovery strategies I recommend is to
appoint a competent manager who can facilitate all departments and the
organization of the company. I believe that the manager ought to serve as a model
for all employees or staff members of the hotel or restaurant company. The
manager ought to begin managing professionally, such as dressing appropriately
for the position, not arriving late to work, and especially beginning to check each
employee's work output daily and evaluate them for employee development. In the
tourism industry, it's important to show the traveler or passenger that they are
happy. The manager's job is to make them feel safe and relaxed when they travel,
and the manager cares about the privacy of their customers. In the industry, service
recovery is crucial because it is how our guests or customers judge us and make a
positive impression on us. We should apologize for our mistakes and provide them
with services they want, such as discounts or freebies, and I believe it will help the
company and the guest or customer get along better.
Question 6
Assume you are Mr. Morocco, what are some possible actions you would take to
deal with the situation?
If I were Mr. Morocco, I would like to maintain my composure and show
consideration for the hotel's mishaps. I also believe that I will accept the hotel's
apology, as it is natural for hotels and restaurants to make mistakes. As guests, we
should also be aware of this. In addition, like Mr. Morocco, I frequently make
errors when communicating with my wife to remind her of the packed schedule for
the meeting I attend. I think it's fair for me to apologize to the company and give
them a bonus for providing us with additional services.
Question 7
Discuss some possible legal implications if any, which could be brought against
Panam Classic (Legal liability, 2018).
The National Privacy Commission (NPC) has the authority to call whenever
necessary for the industry to ensure that all personal information remains secure
against data theft, which could have legal repercussions for Panam Classic. When
Mr. Morrocco wants to sue Panam Classic Resort for damages for violating their
privacy, I believe the legal grounds for his complaint are concerns about the
privacy of guests, as evidenced by a well-known court case in which a jury
awarded the hotel for negligent risk management.
 OUR LADY OF FATIMA UNIVERSITY

Valenzuela City • Quezon City • Antipolo City • Cabanatuan • Pampanga

Question 8
Assume you are the manager that Mr. Morocco aired his complaint to what would
be your first response? What guarantee would you give?
If I were in charge of that hotel and resort, I would probably apologize to him for
what happened to him and offer to pay for his stay and the addition of additional
services. Additionally, I inform him that our hotel system is experiencing some
difficulties. If Mr. Morrocco wishes to return to the hotel, I guarantee that he will
receive a discount so that he can enjoy his stay at the resort.
If there are any issues or misunderstandings between the hotel and the guest, I
believe that the best course of action is to have a conversation with the guest and
inform them of the issues they face as well as how to maintain peace for everyone.
Question 9
Do you believe management/leadership has a role to play in the breakdown at the
hotel? Why or why not? What action/s if any should management take regarding
the telephone operator?
Because this is the first step in getting the hotel ready for all of its guests, I believe
that management or leadership plays a significant role. We must oversee our risk
management and consider a solution. The hotel's management is in place to
organize everything, beginning with staff, budgeting, and every department. If
management is improved, I believe that the entire output to the guest will be
positive because it demonstrates professionalism and a strong commitment to their
work on the part of the staff. As a result, everyone who works hard to provide
quality service to the guest will benefit.
Question 10
Do you believe that ineffective training had a role to play in what happened at the
hotel? If so, discuss the importance of having employees who are effectively
trained. What are some procedures hotels and other organizations can devise to
ensure that employees are aware of and practice pertinent standards and policies?
When it comes to this industry, I believe that having better and better training for
all employees is crucial because we need to leave a better impression on others and
demonstrate our commitment and determination to provide high-quality services.
Ensuring that all services are provided to guests at the appropriate time and
location is essential, and providing better services to guests is the outcome.
Employees are the first to be audited for all workplace policies and procedures,
which indicates that proper communication with our staff is essential to ensuring
that all employees comprehend their workplace and adhere to hotel policies and
procedures. Second, you should be aware of your obligations as an employer,
which means that the employer is responsible for ensuring the health and safety of
their guests or customers and doing their best to evaluate them. Third, invest in
recognized workplace safety management systems and accreditations, which
entails controlling a particular system for certain high-risk industries. Fourth goes
further than simply marking the container for consistency it implies we want to
 OUR LADY OF FATIMA UNIVERSITY

Valenzuela City • Quezon City • Antipolo City • Cabanatuan • Pampanga

make a positive working climate to that they show the great connection between
workers and the supervisor. Last but not least, we should seek professional
guidance from a legal professional. This means that we should have a reliable legal
team to assist us in providing safety for our businesses. The best legal team can
help us conduct training to develop our staff and implement legally compliant
policies and procedures.