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Purpose

The aim of the paper is to help graduate students in the area of hospitality management to understand and deal with non‐performance charges and attrition issues.

Design/methodology/approach

The paper uses case studies to illustrate the issues that must be resolved.

Findings

There are many ways to look at issues – from the hotel's perspective, from the customer's viewpoint, and from an independent observer's position.

Originality/value

This training exercise highlights the complicated issues surrounding non‐performance charges and attrition issues, and suggests ways in which they can be fairly resolved to the mutual satisfaction of all parties to preserve goodwill all around.

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