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Jeremy Moss's credit card was billed $450.00 by the Langford Inn. The charge was a "no-show" charge that resulted from Mr. Moss not arriving at the hotel on a night that "he" had reserved, via the hotel's Web site, two rooms (at $225.00 each). The hotel had been sold out that night, and the rooms, in keeping with hotel policy, had been held for Mr. Moss until 4:00 A.M. the next morning. Mr. Moss contacts the hotel when he receives his credit card statement and protests that he never made the reservations. The reservation data collected on the Web site lists Mr. Moss's actual address and his home telephone number as well as the credit card number billed by the hotel. Mr. Moss, however, still maintains that he did not make the reservation, and thus demands that the "no-show" billing be removed from his card. Do you believe the hotel is justified in charging Mr. Moss for the no-shows? Be specific (Write a company policy) and how could this hotel prevent such misunderstandings in the future.
What is the economic justification for the rapid growth of premium package services?
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