The main problem here was that the guest booked a Deluxe room, but on the system it was allocated as a Superior room. The staff member who checked the guest in did not double check the booking and so as a result they were given an inferior room to the one booked.
The guest complained the next day and I spoke to them and agreed to modify the booking and reduce the full payment by 400 Baht (the difference between the 2 room types). As the guest had not paid yet this was easy to do and we then proceeded to collect the remainder of the payment.
As a way of saying sorry to the guest I offered an extended late check-out, we shook hands and the guest was very happy with the way we had handled the problem.
Ms. Taylor has not complained and actually left the hotel very satisfied with her stay, despite the mistake made by our staff on the first night.