Category Archives: Management And Ownership

by | November 17, 2014 · 9:30 am

Hospitality Industry Security Update: “Cybersecurity Needs Planning, Periodic Review”

Whatever the cost, hoteliers are advised to take certain precautions. “Complacency” is dangerous, Schoshinski said, adding that hoteliers should update security protection plans periodicallyhackers…Despite such resources and other preventative measures in the hotel industry, “the bad guys are getting smarter,” Cividanes said. “The bad guys are watching what you do.

Data security breaches, a hot topic at last year’s Hotel & Lodging Legal Summit, took center stage again at the 2014 conference as the No. 1 topic that keeps hospitality lawyers “awake at night,” said Robert Lannan, program co-chair and principal of Lannan Legal PLLC.

His opening remarks mentioned several headline-making cases, including breaches at Target, Home Depot and White Lodging, where it was revealed in January 2013 that attackers allegedly collected customer credit and debit card numbers, security codes, card expiration dates and other personal information from guests who had stayed at 14 hotels.

For more: http://bit.ly/1zwrVIk

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Filed under Crime, Guest Issues, Hotel Industry, Management And Ownership, Risk Management, Technology, Theft

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by | November 14, 2014 · 9:45 am

Hospitality Industry Management Update: “Managing the Millennial Hospitality Employee”

In terms of attracting and hiring millennials, employers should be mindful that this is a generation that fully embraces technology. Thus, job descriptions should always be listed online,managing millennials and posts should be creative and convey sufficient information about a company’s culture and career path opportunities. Millennials seek employment where they perceive they will be doing meaningful work, and care a great deal about the environment and sustainability. They are the most ethnically diverse workforce to date. In terms of motivation and training, millennials seek constant feedback, and prefer to be coached rather than managed.

Generation Y, commonly referred to as “millennials,” comprise the roughly 80 million people who were born between 1976 and 2001. A great deal has been written about this unique generation that has grown up immersed in a world of technology and social media: they are frequently stereotyped as self-involved with a strong sense of entitlement, coddled, and even labeled “Generation me.” Regardless of whether these frequently bandied about assertions are true, in the next few years, millennials will make up approximately 40% of the U.S. population.

In the hospitality industry, this means not only tailoring and reshaping services to accommodate millennials, but also recognizing that an increasing percentage of hotel and restaurant employees are currently, or will be, part of this generation. Notwithstanding the likelihood that millennials will flock to this robust, growing industry, it only makes sense that hotel and restaurant employers would be actively looking to hire employees who mirror their customer base.

For more: http://bit.ly/11o4GoL

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Filed under Hotel Employees, Hotel Industry, Management And Ownership, Training

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by | November 13, 2014 · 9:34 am

Hospitality Industry Management Update: “Examining Hotel Labor Costs”

Labor cost is a major expense item throughout all operated and undistributed departments within a hotel. Not surprisingly, the labor-intensive rooms and food and beverage departments have the highest labor cost ratios.labor costs In 2013, labor costs represented 61.1 percent of total expenses in the rooms department and 59.6 percent in the food and beverage department. At the other end of the spectrum, labor costs are less pervasive in the administrative and general (48.8 percent) and maintenance (51.5 percent) departments.

As revenues continue to grow for most U.S. hotels, the combined cost of salaries, wages, bonuses, and payroll-related expenditures has declined as a percent of total hotel revenue. In 2013, labor costs represented 32.3 percent of total revenue, down from a high of 34.8 percent in 2009 but still above the long-run average of 31.2 percent. Labor costs measured as a percent of total revenue run from a high of roughly 35 percent at convention and resort hotels to a low of 22 percent at limited-service and extended-stay properties.

Strong growth in revenue, however, has the potential to mask the struggles hotel managers face to control labor costs. Therefore, it is important to also measure movements in labor costs relative to changes in other hotel operating expenses. While labor cost as a percent of revenue has declined significantly in recent years, labor cost measured as a percent of total expenses has remained relatively constant.

For more: http://bit.ly/111qTYD

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Filed under Employee Benefits, Finances, Hotel Industry, Management And Ownership

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by | November 11, 2014 · 9:00 am

Hospitality Industry Management Update: “60 People Fall Ill With Norovirus at Bay Area Luxury Hotel” (VIDEO)

After the outbreak, staff members with the county’s Communicable Disease and Environmental Health Service began working with hotel managementNorovirus to implement infectious disease containment measures. The measures include frequent and comprehensive cleaning of common areas, educating employees about the virus and posting additional signage reminding employees to wash their hands.

Public health officials say 60 people who fell ill after staying at a Bay Area luxury hotel two weeks ago contracted the norovirus — a highly contagious virus that can lead to stomach pain, nausea and diarrhea.

San Mateo County health officials confirmed Friday that the guests and employees of the Hotel Sofitel in Redwood City became ill sometime after Oct. 28, and traced the illness to the highly contagious norovirus, which spreads after contact with an infected person or contaminated food and water.

For more: http://lat.ms/1uYVKCD

And for more on how to help prevent Norovirus at your property, check out the video below from Petra’s own P3 Risk Management Team.

[vimeo https://vimeo.com/98741016 w=500&h=281]

Petra Risk Solutions’ Loss Control Manager, Matt Karp, offers a P3 Hospitality Risk Report – ‘Preventing Norovirus at Your Property’. 

P3 (Petra Plus Process) is the Risk Management Division of Petra Risk Solutions – America ’s largest independent insurance brokerage devoted exclusively to the hospitality marketplace.

For more information on Petra and P3 visit petrarisksolutions.com or call 800.466.8951.

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Filed under Employee Practices, Food Illnesses, Guest Issues, Health, Hotel Employees, Hotel Industry, Hotel Restaurant, Management And Ownership, Risk Management, Training

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by | November 10, 2014 · 8:58 am

Hospitality Industry Management Update: “What You Should Know Before Monitoring Your Employees and Guests”

There are many legitimate reasons for an employer to monitor spaces at the workplace, in fact, the law might require the employer to do so in some situations.monitoring employees However, surveillance is a sensitive subject and employers have good reason to be cautious. As always, employers should consult competent legal counsel before implementing any workplace surveillance program.

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.

For more: http://bit.ly/1u1RgK0

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Filed under Hotel Employees, Hotel Industry, Management And Ownership, Privacy, Technology

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by | November 7, 2014 · 8:50 am

Hospitality Industry Insurance Update: “AH&LA, 80+ Hotel Organizations Call On House Leadership To Pass TRIA Now”

TRIA is intended to provide stability to the economy and assure investors and developers,ahla-80-hotel-organizations-call-on-house-leadership-to-pass-tria-now as they plan long-term projects, that insurance will be available to adequately protect their properties against the financial risk of a terrorist attack. However, a short-term extension creates uncertainty as to whether TRIA will still exist as these projects move forward.

Washington, D.C. — In the wake of the midterm elections, the American Hotel & Lodging Association (AH&LA), along with more than 80 other hotel industry groups including hotel brands, management companies, real estate investment trusts (REITs), owners and state hotel associations, called on the House of Representatives to get back to work and pass the Terrorism Risk Insurance Act (TRIA) in a letter sent to House leadership.

AH&LA urged lawmakers to focus on the immediate priorities, including passage of this vital piece of legislation, which is critical to protect job and economic growth within the hotel industry and across the broader economy. More than 80 groups joined AH&LA in signing the letter, which was sent to every member of the House of Representatives in addition to House leadership.

For more: http://bit.ly/10ym9JI

 

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by | November 6, 2014 · 9:33 am

Hospitality Industry Management Update: “3 Obamacare Decisions for Hoteliers”

Unless the act is repealed, over time employers will realize its effects, both positive and negative.illness(1920x1080) Rather than waiting around, however, employers are already adopting offensive moves to blunt financial impact beyond a certain level, seeking improved productivity through reduced costs and updated methods. 

Despite attempts by health care experts to demystify the Affordable Care Act, some employers remain unsure of how to comply. Their questions are basic and familiar: Who is a covered employer? What type of coverage must be offered? May we keep our 90-day waiting period for enrollment?

While these questions are important, a more urgent imperative looms: The deadline for many employers to comply with the mandated coverage provision of the Affordable Care Act is approaching rapidly. Some smaller companies will not face mandatory coverage decisions until 2016, but for many employers a compliant health coverage program must be in place as early as New Year’s Day 2015.

Critical decisions must therefore be made without delay.

For more: http://bit.ly/1wzWL39

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by | November 5, 2014 · 9:48 am

Hospitality Industry Marketing Update: “Becoming Guest-Centric: Why Hotel Marketing Needs to Change”

At a time when guest-centric thinking has become critical for differentiating hotel brands,reinvent marketing hoteliers need solid information about guest preferences and behavior in order to deliver customer-centric marketing. By transforming not only their marketing efforts but their entire businesses in this way, hoteliers can deliver the value that today’s empowered guests crave.

Hoteliers: It’s not about you.

Is your marketing all about you? About how beautiful are your rooms, how delicious is the restaurant’s menu, how soothing are the spa services? All this may be true, but let’s be realistic: Your potential guests are hearing the same thing from every hotel.

There definitely is room for differentiation among hotel properties, and travel searchers yearn for it. Leisure and business travelers alike are usually undecided when they begin the online research process. Sixty five percent of vacationers and sixty percent of road warriors are considering multiple hotel brands when they begin planning. While most business travelers have a handle on the differences between hotel brands, sixty five percent of leisure travelers are unclear on hotel differentiation.

For more: http://bit.ly/1vJxmQh

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by | November 4, 2014 · 8:47 am

Hospitality Industry Health Update: “Maintaining a Healthy Workforce, Workplace Keys to Hotels’ Ebola Response”

So far, it appears that the Ebola outbreak is not holding back companies’ road warriors. According to a poll of corporate travel managers released by the Global Business Travel Association Foundation,Ebola-620x330 nearly 80 percent of the managers said international business travel has either not been impacted at all or has not been impacted much during the past month. Likewise, more than 90 percent of managers said that domestic business travel has either not been impacted at all or has not been impacted much during the past month.

Travelers aren’t immune to the fear of Ebola generated by top headlines, so even though the dangers of a serious outbreak in the United States remain extraordinarily low, hotels must be prepared to respond to guests’ and employees’ concerns. And with flu season upon us, they should be ready to take responsible action no matter what the serious health care scenario.

“The health, safety, and security of our guests and team members is paramount,” stated Katherine Lugar, president and CEO of the American Hotel and Lodging Association (AH&LA) in a press release. “In these kinds of rapidly evolving situations, it is imperative that we stay informed, dispel fact from fiction, and follow official guidelines.”

For more: http://bit.ly/1x3lCeB

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by | November 3, 2014 · 9:09 am

Hospitality Industry Legal Update: “California Ranks Highest For Workers’ Compensation Costs”

California employers are required by law to have workers’ comp insurance, even if they have only one employee.Workers Comp (NO LOGO) The California Department of Industrial Relations (DIR) imposes assessments on employers to cover the cost of potential workers comp claims. The amount a business pays into the system depends on how many employees a business has and what its total payroll is.

California has been ranked as the most expensive state for workers’ compensation costs, according to a newly released report.

The Workers’ Compensation Premium Rate Ranking Summary from Oregon’s Department of Consumer and Business Services shows that California businesses spend $3.48 for every $100 of payroll issued.

That’s 188 percent of the median cost of $1.85 for all 50 states. California was the third most expensive state in 2012 and the fifth most expensive in 2010.

“California’s workers’ compensation system is incredibly inefficient,” said Jerry Azevedo, a spokesman for the California-based Workers’ Compensation Action Network, which seeks to reduce costs for employers and improve services to injured workers. “It does not do a good job of achieving its goal. For as much as employers pay, they don’t get a lot out of it.”

For more: http://bit.ly/1pgVFZb

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