Ethical Decision-Making Issue

It was during the peak travel period where I called for Caroline who was the next customer in line. She highlighted her interest in an attractively priced package that included return air tickets and hotel accommodation. Caroline was eager to book the package immediately and I learnt that she was a frequent customer with the travel agency. Although the agency had contracted hotel rates for the ongoing promotion, I was instructed by my manager Lily to quote a marked-up price for the team to achieve the sales target. Should the customer question the difference in price, I was told to make an excuse that it was a peak season pricing. 

The ethical principles at stake were honesty, integrity, trustworthiness, reputation and accountability. If I quoted a marked-up price, I would feel guilty as I am deceiving the customer and Caroline might feel cheated. The agency’s reputation would also be at stake if Caroline airs her complaints and finds out about the dishonest pricing. Moreover, the team would earn commissions and Lily would be eligible for bonuses for achieving the sales target. 

If I quoted the advertised price, I might be reprimanded for not following instructions and caused the team to lose out on commissions. However, Caroline would be satisfied and share her positive experience, thereby boosting the agency’s reputation. 

After considering the ethical principles at stake, the most ethical decision would be to quote the advertised price. This is because it is important to maintain long term relationships with frequent customers such as Caroline who are more likely to spread positive word-of-mouth and make repeat bookings. Loyal customers would also be inclined to spend more on their bookings, which would allow the team to earn greater commissions in the future.