This study models guests' reactions to a hotel based on the way they perceive management's treatment of staff. First, it is suggested that guests empathize with staff by placing themselves in the staff member's position, and that customers who perceive unfair treatment of staff show decreased loyalty and increased dysfunctional behavior. Second, treatment considered unfair is internalized by guests, thus leading guests who also perceive themselves as victims of unfair treatment to identify even more with hotel staff. Data were collected from 343 guests in seven sampled hotels in the Canary Islands (Spain). Results of hierarchical multiple regressions demonstrate that only reduced loyalty is a substantive reaction to perceived injustice toward employees, whereas engaging in disloyal and dysfunctional behavior are significant reactions to perceived mistreatment of self. These effects on dysfunctional behavior are also found to be intensified among guests who perceive management's mistreatment of them and staff members, and stay in an all-inclusive package situation. Managerial implications of these findings are discussed. ► Alleged mistreatment of staff and guests is examined. ► Guests show signs of reduced loyalty when perceiving acts of injustice to staff. ► Dysfunctional behavior is activated among guests who perceive mistreatment of themselves and staff. ► These effects are also intensified where a guest stays on an all-inclusive package.