Category Archives: Employee Practices

What the Erin Andrews Lawsuit Means for Hoteliers

erin andrews

A jury’s decision this week to award sportscaster Erin Andrews $55 million in a civil suit against her stalker and the owner and management company of the Nashville hotel in which the man secretly videotaped her will have repercussions for the hotel industry for years to come, sources said.

In 2008, Michael David Barrett recorded Andrews while she was nude through the peephole of her hotel guestroom at the Nashville Marriott at Vanderbilt University. Barrett, who later pleaded guilty to felony stalking in 2009, discovered which room was Andrews’ and reversed the peephole in the door to see inside. The jury in Andrews’ civil suit found Barrett, as well as the owner of the hotel, West End Hotel Partners, and the management company, Windsor Capital Group, to be responsible.

Andrews had originally included Marriott International in her original suit; however, the court in Tennessee found that Marriott had no liability in the case, and dismissed it.

Stephen Barth, a professor of hospitality law at the Conrad N. Hilton College of Hotel and Restaurant Management at the University of Houston and founder of hospitalitylawyer.com, testified on behalf of the defense during the civil trial. The defendants in this case did what they were supposed to do, Barth said in an interview with HNN, and he believes that because the companies were focused and diligent on their policies, procedures and employee training, it gave the jury members pause during their deliberations.

With the outcome of the case, Barth stressed that just as before, it’s important for hoteliers to have the right policies and procedures in place as well as the proper training for staff to deal with guest privacy issues.

“You need to be able to demonstrate the training that went on, the frequency and outcomes,” Barth said. “How do you evaluate whether the training was effective? Ultimately, you have to be able to demonstrate this in a courtroom.”

Policies, procedures and training

David Samuels, partner at Michelman & Robinson, said one of the issues that jumped out at him in following the trial was whether the management company had the proper policies and procedures in place regarding guest privacy. He said he believes several jury members were bothered by the testimony of some hotel staff who couldn’t recall having those policies. Samuels followed the trial but was not directly involved in it.
At this point, all owners and operators should review how they’re running their properties and whether they have specific written policies and procedures in place.

“They need to have those and effectively train the staff on it,” Samuels said.

Along with having those policies in place, hoteliers should regularly update those policies based on legal developments, such as the Andrews case, according to Sylvia St. Clair, an associate with Faegre Baker Daniels. If there’s any question about whether a policy is in compliance with the law or industry standards, she said, contact legal counsel or the human resources department.

“Then ensure (that) new hires receive that training as well as existing employees,” she said.

If a front-desk associate receives a request for a guest’s private information, such as his or her guestroom number, St. Clair said the associate should know not to give that information out unless he or she is authorized to do so. The associate should know to contact his or her manager or supervisor with questions.

“You want a statement to give to (anyone) requesting information,” St. Clair said. “Make sure employees know if they are receiving these types of requests, and the person requesting is continually asking, they shouldn’t hesitate to get their manager or GM involved.”

After completing the training, St. Clair said, document the training in employees’ files to show they received the latest version of the policy and understand it.

House phone access

During the civil trial, there was a dispute over how Andrews stalker learned which guest room was hers, Samuels said.
Andrews attorneys argued her stalker learned from the front-desk staff, an allegation the associates denied during the trial. Her stalker, Barrett, said in a taped deposition that he figured out Andrews room number by using an internal house phone at the hostess stand in the hotel restaurant.

“Those are only supposed to be used by employees,” Samuels said.

Barrett called the front desk and asked to speak with Andrews, Samuels said, and when the line was connected, Andrews room number appeared on the phone’s LCD screen. Barrett then went to her floor, saw the room next to hers was being turned over and then requested at the front desk to be in that room.

“From a privacy standpoint, from a safety standpoint, hotel guests should never be allowed to use an internal house phone that displays the room number on an LCD screen,” Samuels said.

If guests need a house phone, he said, they should be directed to one without an LCD screen and it should connect to an operator.

Similarly, hotel employees should be aware of who may be looking over their shoulders when using phones that display room numbers, he said.

Red flags

In the plaintiff’s closing argument, Andrews attorneys asked why the front-desk staff was not more critical about someone asking for a specific room, especially one next door to Andrews, according to Christian Stegmaier, a shareholder at Collins & Lacy. Stegmaier followed the case but was not directly involved in it.
That argument might presume too much about Andrews’ fame at the time, he said, as the front-desk associate may not have put two and two together.

“The takeaway from all of that is when you have a prospective guest making very specific requests, like about specific rooms, you need to be critical (of it),” he said.

Asking some gentle questions might allow the associate to learn a little more about the person making the request and why that specific room is so important to them, Stegmaier said.

“From a management perspective, you need to empower your associates to use that kind of critical thinking,” he said. “You want to encourage that.”

That is doubly important when the front-desk staff is aware of any celebrities or dignitaries staying in the hotel, Samuels said. Any requests for a specific room adjacent to such guests should send up a “big, red flag,” he said.

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What Should Your Hotel Brand Know About Generation Z?

Brand

Time waits for no man, and just as soon as we think we’re getting a handle on what millennials want, a new buzzword starts to crop up in conversation: “Generation Z.”

Trying to define an entire generation’s attitude and purchasing habits can seem tedious (and a hard target to hit), but it makes smart business sense to have a plan in place for the next wave of travelers. While the inclination may be to think of Generation Z as merely an extension of millennials, odds are they will be their own distinct group. And how you prepare your destination, and brand, to receive this group could have a profound impact on your company’s future.

So, who is Generation Z?

Always Connected

Exact ranges for generations have been hard to define since the baby boomers, but Generation Z is roughly considered to be defined as those born in the mid- to late-1990s through the 2010s. In other words, babies being born today (and potentially up to around 2025), up to early 20-somethings.

This group makes up about 25 percent of the population, according to Forbes, making it more populous than boomers or millennials.

For some perspective, the oldest members of Generation Z were 7 or 8 years old when the Sept. 11 attacks took place. Many have pointed out significant aspects of this generation are its widespread use of the Internet (even from a very young age), a high comfort level with technology, reliance on social media for a large portion of their socializing, and possibly feelings of unsettlement and insecurity from growing up in the Great Recession.

And in less than five years, they will make up almost 10 percent of the workforce.

Not Millennials

The dividing line is a bit murky, but members of Generation Z are (and will likely continue to be) different than their millennial predecessors. According to a survey of young people conducted by Adecco, more members of Generation Z aspire to lofty career goals, while millennials crave financial stability.

Generation Z is more entrepreneurial, and more prefer in-person communication than millennials.

Already Influential

It may be several years before enough members of Generation Z are booking hotel rooms to be noticeable, but they already influence their parents—when polled, 93 percent of parents believe their children have influence over their family spending and purchases; 55 percent say their opinion is “extremely or very influential.”

Planning Ahead

So if Generation Z’s tastes are already becoming an influence, what should your hotel do to get ready for the day when it’s their names on the credit card? Making sure your brand and marketing adjust accordingly will be of paramount importance.

In its report examining the trends of Generation Z, global firm Ernst & Young suggests three strategies to gaining the generation’s interest and loyalty in your brand: Intuitively deliver on their constantly evolving needs; make them part of the solution; and demonstrate respect and loyalty before asking for it.

Evolving Needs

For starters, members of Generation Z are in a constant search for information and new platforms of delivery—one in four try out at least seven new apps a month, and the list of social media platforms they favor could be longer than this article.

With that in mind, they have no patience for a brand that doesn’t already get it, or even worse, complicate their lives. Your messaging needs to find them wherever they may be searching—and that might be different than last week.

Part of the Solution

Generation Z also has more do-it-yourselfers than the previous generation (when you grow up with a how-to for anything on YouTube, it makes it easier). Ideally they want their brand to be a tool that empowers them—they may even want to create your offering for you, particularly where, when, and how they buy from you.

Respect and Loyalty

Once it’s earned, Generation Z’s brand loyalty is impressively strong. But getting it could be the challenge, and the best way to show that you respect them is to speak to them individually.

Whether this means personal interactions between customers and your brand on social media, or visibly accommodating what they’ve asked out of your brand, the last thing Generation Z wants is a form letter. Your brand will need to foster a reputation of responsiveness and collaboration to earn their respect.

“Gen Z is used to feasting on content regularly and this is the age group that has given rise to (multi-channel networks),” Matt Smith of the TV platform Anvanto told Digiday. “Brands like Marriott that are creating specialized content already are the ones that will resonate with them.”

Through a combination of tech savviness and a greater need for self-reliance, Generation Z could shape up to be one of the most productive and influential generations our country has ever seen. Whether they choose to bring their business to your hotel will depend on how hard you work to get to know them. And you’d best not wait—there’ll be another generation on the horizon before we know it.

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How to Ramp Up Employee Cybersecurity Training

employee

In 2015, the hotel industry suffered unprecedented cyberattacks. In one month alone, Hyatt Hotels Corporation, Starwood Hotels & Resorts Worldwide and Hilton Worldwide Holdings all fell prey to savvy cyber thievery.

Hyatt confirmed hackers used malware to collect cardholder names, card numbers, expiration dates and verification codes from at least 250 hotels globally. Just a few days after the company announced its planned merger with Marriott International, Starwood Hotels also stated malware had been used to steal credit and debit card data that was found on point-of-sale cash registers.

Hilton also began investigating credit card breaches at several of its properties, including its Hilton, Embassy Suites, DoubleTree, Hampton Inn and Suites, and Waldorf Astoria Hotels & Resorts brands. Hilton confirmed the breach and, much like Hyatt and Starwood, cited unauthorized malware that targeted payment card information in point-of-sale systems as the cause of the breach. Additional hotels targeted by hackers in 2015 included The Trump Hotel Collection, Mandarin Oriental and White Lodging Services Corporation.

To help prevent breaches, management should take steps to clearly define employee policies and procedures, which include:

Create protocols for access and transfer of sensitive information

Once a hotel has its IT network secure, only certain individuals should have access to the data. Further, user activity should be monitored using insider threat detection solutions that notify management of suspicious activities, both externally and internally. This includes monitoring applications for phones or computers that have access to sensitive data.

Hoteliers should tighten all network security. Simple ways to help accomplish that include:

  • ensure logins expire after short periods of inactivity;
  • require strong passwords that are never written down in public or unsecured locations; and
  • scan devices for malware every time they are plugged in.

Confirm that off-site technology is secure

Data housed off-site should be routinely backed up, and hoteliers should ensure that Web application firewalls are cloud-based solutions that are secure and encrypted. Hoteliers also should use top-notch anti-malware software and update it routinely.

Securing paper files that might include personal information

Employee files are a major target area for data breaches by way of paper files. They are typically easy to access (particularly in smaller hotels) and provide a significant source of data for a low-tech inside job.

Employee files also might include medical information protected by HIPAA. According to the Department of Health and Human Services, hacking has been involved in the HIPAA breaches of nearly 3 million patient records since 2009. Employees across all industries, including hospitality, should be aware that this highly sensitive information needs to be protected.

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3 Tips Hoteliers Can Learn From Expedia

Expedia

Bigger and faster.

That’s how Expedia executives characterized the overall travel industry in 2016 from their vantage point during the company’s annual partner conference.

The company disclosed highlights from the data it collects on travel booking and activities and shared updates on its business following a year when Expedia grew larger than ever, following its acquisition of Orbitz earlier this year and announcement of intention to acquire HomeAway.

Here are three top-level tips Expedia speakers shared during the conference that can benefit hoteliers:

1. Don’t have a mobile strategy yet? Get one. 

Expedia President and CEO Dara Khosrowshahi reminded attendees how important a hotel’s mobile presence is, not only because that’s where bookings are increasingly moving, but also because guests who spend countless hours connected to their mobile devices are more likely to connect more frequently with their travel providers.

But it’s more than just having a mobile presence, he said. More important is having cross-platform compatibility.

“You have to be able to optimize across devices and build an experience across devices,” he said. “We’ve found that 48% of our customers who make a purchase on Expedia have accessed two or more different devices before that purchase.”

Cyril Ranque, Expedia’s president of lodging partner services, shared data that while mobile use is increasing among travelers searching for hotels, mobile users search fewer properties before booking than desktop users do.

“This means that the consideration set is smaller on mobile, so you need a clear, strong mobile strategy to make sure your hotel is in the consideration set of the customer,” he said.

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Filed under Conferences, Employee Practices, Hotel Employees, Hotel Industry, Management And Ownership, Social Media, Technology

What You Should Know Before Monitoring Your Employees and Guests

Employees

Employees can make or break businesses in the service industry. While customer service oriented employees create a luxurious experience at a lesser establishment, employees that don’t prioritize customer service can ruin a guest’s experience even at the most finely-appointed hotel.

However, managers and supervisors cannot always be present to recognize and reward desirable service practices, nor can they always be present identify and correct poor practices. With so many points of customer and employee interaction, surveillance is one of the most effective methods to safeguard employee safety and integrity, review employee performance, identify training points, and document “HR issues.” Of course, too much of a good thing can be a problem.

Employers must understand the difference between valid surveillance and illegal intrusions on privacy rights before taking advantage of video/audio recordings. This article aims to help employers stay on the right side of that fence.

1. What is a “Reasonable Expectation of Privacy”?

The law regarding privacy in the workplace was most recently defined by the California Supreme Court case in Hernandez v. Hillsides, Inc. The rule is subjective, yet straightforward—employers must not engage in any activities that would violate an employee’s “reasonable expectation of privacy.” This helps determine the degree to which a person can reasonably expect to be left unmonitored, but the problem is that it is a nebulous standard that relies on “widely accepted community norms.”

There are some obvious places an employee or guest will reasonably expect privacy, for example, in a bathroom stall. However, courts will look at several considerations to determine the reasonableness of an individual’s expectation of privacy, such as the customs, practices, and physical settings of the workplace. Other considerations include where the surveillance equipment will be placed, when it will be active, and who will have access to recorded data.

The time and place of activities is another important factor. This includes an inquiry into the physical layout of the area being monitored, whether the area is restricted access, limited from view, or reserved for performing bodily functions and other personal acts. On the other hand, if an area is open and accessible to coworkers or the general public, or work is performed in the area, employees are unlikely to have a reasonable expectation of privacy.

Courts will also consider who has access to any recordings or videos to determine the severity of an alleged invasion of privacy. In fact, even if an employer collects monitoring information legitimately, an employer may be subject to liability if the information can be accessed by the wrong people. A non-managerial employee should not have access to a recording of his or her co-worker. If the purpose is to monitor customer service performance, only managerial employees should have access. For this reason, employers’ must carefully control who has access to any monitoring data.

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Hospitality Industry Management Update: “Hotel Owners Can Get More Green by Going Green”

When looking for the smartest ways for your hotel to implement resource and money-saving updates, reach out to a consultant who can help you determine the costs, returns,Tap with dripping waterdrop. Water leaking, saving. and impact that going green will have your business specifically. It can be overwhelming, but remember that one small change at a time will add up to a lot of savings over the long run.

Reduce, reuse, recycle. It’s a phrase we’re all well-acquainted with, and for good reason. The earth’s natural resources that we depend upon are finite, so the advice is simply to use them wisely. Even if you don’t consider yourself an eco-focused person, it just makes good practical sense to be resourceful–whether it’s in vogue or not.

The best part about wasting less resources, though, is wasting less money. Wasting less money is having more of it, and because the nature of hotels requires the use of a lot of water, energy, food, and other materials, hotel owners have an incredible opportunity to save a lot of money by being more resourceful.

Save money, help the planet–these aren’t the only benefits. Taking responsibility for the way your business uses the earth’s resources reflects well upon your brand and becomes part of your company culture. Your business can effect positive change in the world!

Below we review three areas that are full of opportunities for savings. Some of the ideas do require an upfront cost but will pay for themselves in savings. Remember to look into opportunities for rebates and tax credits when considering the cost of efficiency updates as well.

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Hospitality Industry Management Update: “6 Ways to Prepare For the Next Downturn”

“Providing an exceptional guest experience is the best investment any hotelier can make.20150714_downturn_feature This is why we as a brand have rolled out a membership-wide training program all about the importance of unlocking the personalities of the staff and the story of the hotel when guests stay,” she said.

Good times continue to roll for the global hospitality sector with growth in the travel and tourism industry expected to increase by 3.9% this year, according to Ernst & Young’s “Global hospitality insights” report for 2015.

But in the cyclical fashion of the industry, the upswing can’t last forever.

So what should hoteliers be doing now to prepare for the inevitable down cycle, and how much can investing in their products and services now set them up for not so good times in the future?

For Eric Danziger, president and CEO of Debut Hotel Group and Hampshire Hotels Management, preparation now is absolutely key to success in a future downturn.

“Hoteliers should be pragmatic, preparing for when it is a bit more difficult to get those much-needed guests through a property’s doors,” he said. “Hoteliers that are prepared with a product and with services that guests value, appreciate and are willing to pay for will be ahead of the game.”

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Hospitality Industry Legal Update: “Are You Breaking the Law by Recording Calls?”

“Regardless of the content of the call, hoteliers should be ensuring that they are using automatic disclosures—in order to obtain consumer consenthotel-phone—if using an automatic recording system. If an operator becomes the target of one of these consumer privacy class actions, taking an aggressive approach and attacking these claims as incongruent with the legislative purpose and intent behind the respective statute is a recommended.”

In the past few years, class action plaintiffs have recovered billions of dollars in punitive damages by exploiting strict liability laws that punish businesses for failing to properly notify customers when a phone call is being recorded.

Under the Federal Telephone Consumer Protection Act and similar state statutes, businesses including hotels are prohibited from using certain tactics when telemarketing or making calls to solicit potential guests or customers. Hotels and other businesses are precluded from making calls or using any kind of prerecorded message, unless the caller has obtained a recipient’s prior express consent in writing or electronically.

Additionally, hoteliers are prohibited from making calls to residences before 8 a.m. and after 9 p.m., and a future hotel guest calling to confirm a reservation also must be notified if the call is recorded. Hence, under these laws, if a hotel receptionist in Montana receives a call from a California resident to confirm a reservation but never notifies the recipient that the call is being recorded, it could result in damages ranging from $500 to $5,000 per call under federal and state laws.

This seemingly innocuous business practice of recording customer service calls without providing some variation of the oft-heard disclosure, “This call may be monitored or recorded for quality assurance purposes” has the potential to financially cripple a business.

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Hospitality Industry Risk Update: “Is Your Hotel Properly Collecting and Preserving Incident Related Evidence ?”

Videos can make or break a case. For example, in one case, video footage clearly showed that the plaintiff initiated the fist fight that was at the heart of his lawsuit.collecting evidence The video would have absolved the hotel from all liability, but the hotel failed to properly preserve this key piece of evidence.As a result, the case had to be settled instead of vigorously defended. Further, as digital surveillance systems continue to become the industry standard, judges have been less forgiving when it comes to claims that the pertinent footage was either lost or never preserved.

By the time a case reaches an attorney’s desk, all too often pertinent evidence either has been lost — or was never collected in the first place. California’s statute of limitations for a personal lawsuit is two years; consequently, an attorney’s first involvement in an incident on your property usually happens more than two years after the incident has occurred. If your hotel or resort has not properly gathered and preserved evidence, it becomes very challenging to recreate what transpired. Hence, it is imperative that; your hotel have formal written evidence retention policies; that first responders and security teams are properly trained on how to gather the evidence; and that hotel staff take steps to ensure that this evidence is preserved. Failing to collect and preserve evidence can turn a defensible case into a major settlement.

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Hospitality Industry Management Update: “5 Ways to Improve Responses on TripAdvisor”

Leisman cited data form a Phocuswright poll of the TripAdvisor community of travelers that found 84% of U.S. users agreed that an appropriate managementonline engagement response to a bad review “improves my impression of the hotel.” Six of 10 users (62%) said seeing hotel management responses to reviews generally “makes me more likely to book it (versus a comparable hotel that didn’t respond to travelers).”

It’s funny observing the disparate number of policies hoteliers employ regarding reviews on TripAdvisor. Company A insists on responding to every comment, while Company B tells its managers to reply only to the bad. Company C takes a different tact entirely: It doesn’t respond to any.

Those are the broad buckets. Nuances and further variation exist at each stage along the spectrum. And each company that employs them insists theirs is the only and obvious approach.

Some variety might be warranted. One hotel is often not like the other, so I understand a degree of unique plans that appeal to unique bases of demand, product offerings and location types.

But clearly there are some hoteliers who, despite their best intentions, are engaging with guests on TripAdvisor in a manner that could prove potentially harmful to further review rankings and thus future bookings.

In cases such as these, I find it’s best to go straight to the source for the prescribed best practices. In this case, that would be TripAdvisor—or more specifically, Heather Leisman, business VP of industry marketing.

This topic was top of mind for her. TripAdvisor recently released a report which examined why travelers write reviews. The top reason? “To share useful information with others” and because “they find reviews helpful, so they want to give back.” (Who knew the TripAdvisor online community was so altruistic?)

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