Category Archives: Risk Management

by | January 15, 2016 · 6:24 pm

Booking Scams: Helping Guests Helps Hoteliers

Scams

Although online booking scams are a problem that should be resolved by the hotel industry as a whole, they also can cause headaches for individual front-desk employees at properties.

 

According to research from the American Hotel & Lodging Association, 15 million deceptive bookings were made in 2015 at a cost of roughly $1.3 billion.

So what should you do when prospective guests walk through your front door believing they’ve booked and paid for a stay only to find out they’ve been scammed? Sources said the answer to that question can be a difficult one, but it requires a delicate balance of education, compassion and long-term thinking.

Maryam Khan Cope, VP of government affairs for AH&LA, said one way these rogue websites operate is by taking photos from a hotel’s website and claiming to offer bookings to that particular property.

“We’re seeing this spike (in booking scams) and hearing from hotels that they essentially had their identities replicated on these scam sites,” Cope said.

Accommodating a scammed guest

Even though hoteliers did nothing wrong to cause a would-be guest walking onto their property with a sham booking, there is a lot on the line depending on how the situation is handled.

Roger Bloss, CEO of Vantage Hospitality Group, said his directive to owner-operators of his company’s brands is to honor stays of “a night or two” and charge it to the corporate office.

“We’ve got to think about the people booking in the economy lodging segment,” Bloss said. “(Scam bookings) can be a dramatic hardship on them. As hoteliers, we don’t want to see that happen. So, we’ve instructed our hotels to be hospitable.”

Bloss said covering stays for scammed customers benefits the company in terms of reputation management. Even though the hotel isn’t the source of the scam, leaving a would-be guest out in the cold can lead to a negative association with brands and possibly negative reviews and backlash online.

“At the end of the day, it always comes back to the brand, the property and the company,” Bloss said. “I don’t want to put our members in the position that they have to make a financial decision that affects the brand as a whole. In the days of social media, it’s a lot less expensive to keep a customer than attract new ones.”

Bloss said he sees this as a common sense approach.

“You have to think about all the money spent to attract guests to hotels,” Bloss said. “Would you destroy all that over a couple hundred bucks?”

Cope said AH&LA suggests taking a similar tact to what Bloss described.

“We suggest, because they’re in the business of guest service, that they do whatever they can to accommodate,” she said. “That might mean identifying an alternative at your hotel in your area.”

Cope said GMs try to “bend over backwards” to help scammed guests, but sometimes they’re caught in situations where no solution presents itself, such as if no rooms are available. But hoteliers should keep in mind that all efforts to help a scammed guest are positive.

“They should offer any additional support they can provide the guest especially because negative experiences often reflect on the hotel,” Cope said.

Chris Harvey, GM of the Crowne Plaza Charleston Airport & Convention Center, said he has been lucky enough to not encounter scammed guests at his hotel, but if it were to occur he’d instruct staff to offer a room at a reduced rate.

“You have to make sure you’re doing something for them and help them to keep the situation from getting worse,” Harvey said.

For more: http://bit.ly/1NbJKAJ

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by | December 21, 2015 · 7:34 pm

16 Hotel Marketing Trends for 2016

Marketing

2016 is right around the corner, and this past year has seen a slew of changes to the digital marketing landscape. The growth isn’t over, though – mobile is exploding and technology is expanding. That means that digital marketing, still a relatively young and swiftly-growing field, is rapidly growing and changing along with it.

Here’s an what we’re predicting:

  1. Mobile Dominates: Mobile has contributed over 94% of year-on-year growth in e-commerce traffic. On average, 21% of hotel bookings take place on Mobile devices. Make sure you’re ready for the future. (Learn More)
  2. Content is the New SEO: With an average of 30-40% of a hotel’s revenue deriving from Organic traffic, having a content strategy that goes beyond typical ‘hotel information’ is extremely valuable. Whether it’s a blog about local events or an innovative social presence now is the time to get creative.
  3. Relationship Marketing: It’s vital to market to real people, and market to therightpeople. Insights from persona marketing, machine learning, programmatic marketing and Google’s customer match will all help you talk to your guests in 2016. (Learn More)
  4. The Rise of Ad Blocking: With Ad Blocking on the rise, other methods of driving traffic to your site need to step up. Ad blocking grew globally by 41% in the past 12 months, and is expected to cost the industry $41B globally in 2016. (Learn More)
  5. Video Everywhere: Video is taking over, with auto-play clips appearing on Facebook, Instagram and elsewhere. It’s no longer restricted to your website and YouTube – in 2016, there will be more channels than ever to promote your hotel’s videos on.
  6. Buy Buttons Taking Over: Social E-Commerce is on the rise! Buy buttons on Facebook, Pinterest & other social channels will become standard as the line thins between social media and e-commerce sites. (Learn More)
  7. In-the-Moment Marketing: Being “in the moment” matters for hotels. Showing up at the right place and the right time and having a strong presence on all channels where your personas hang out is crucial, so nail down guest personas and strengthen your strategy.
  8. New Payment Methods: New ways of completing a payment, particularly on mobile are growing. Companies like Stripe are starting to change the market. 2016 will see fingerprint payment grow, more mobile payments and simplified checkout flows. (Learn More)

For more: http://bit.ly/1IkuczB

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by | December 7, 2015 · 5:48 pm

Credit Card Switch: Is Your Hotel Compliant?

Credit Card

Following the nationwide EMV liability shift on Oct. 1, in-person credit card transactions in the United States are safer and more secure than ever before. Instead of swiping a credit card, vendors will be required to scan a high-tech chip that creates a unique code for each transaction. This means consumer information will be more difficult to duplicate, leading to increased data safety. Additionally, the widespread use of EMV (Europay, MasterCard, and Visa) microchip technology protects vendors—including hoteliers—from liability in cases of fraud. And, now that the country has finally caught up with global security standards, the long-term maintenance and success of the program is of the utmost importance.

According to Karen Cox, vice president of payment and retail solutions at Toronto-based payment processor, Moneris, U.S. vendors are in a very advantageous position as this solution spreads throughout the country. “Because the United States adopted EMV technology after other major markets, there have already been solutions developed for common issues, making the process easier,” she explains.

Most properties have already installed the POS hardware that include chip readers, but as the new EMV systems are fully integrated, hoteliers may need to add new processes during transactions. “You have to prove that the card is at the hotel for the transaction, so even if guests book with a credit card online, they may need to present the card during check-in and either sign or enter their PIN,” Cox says.

However, once the system is adopted and processes have evolved to facilitate the technology, keeping EMV technology up to date should not be an issue for most hoteliers. “The chip technology is very solid,” Cox describes. “There will likely be software updates, but if the properties keep up with the regular maintenance and renewal processes, they shouldn’t have any issues.”

While some hotels may not be using EMV technology yet, Cox recommends that these entities implement the systems as soon as possible. She adds that hoteliers who don’t know where to start should partner with a provider that can provide end-to-end solutions for the EMV shift.

For more: http://bit.ly/1N6JVAS

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by | December 1, 2015 · 7:46 pm

7 Tips to Reduce Holiday Party Liability for Employers

Holiday

With the Thanksgiving weekend behind us, attention turns to celebrating with family, friends — and coworkers at the company holiday party.

A majority of organizations are still planning to hold holiday or end-of-year parties; however, a growing number of employers are cutting back, according to a recent survey from the Society for Human Resource Management. The survey found that almost two-thirds (65%) of human resource professionals said their organizations would host a party for all employees. But 30% of respondents said that no party was planned at their organization, an increase of 13 percentage points from 2012.

How and where will those companies celebrate? A majority — 67% — of respondents said their party would be off site, and 22% said they would close early that day. More than half (59%) said alcohol would be served at the party. Of those planning to serve alcohol, 47% indicated they would regulate alcohol consumption at the event, with 71% using drink tickets or having a drinks maximum.

Employers are concerned about possible repercussions from employees drinking too much, for example:

   • Drunk driving and possible motor vehicle accidents.

   • Workers compensation for falls and other injuries.

   • Discrimination claims, including sexual harassment and religious

      discrimination.

   • Injury to third parties.

   • Premises liability.

   • Underage drinking.

In addition to employer-based liability, many organizations are concerned about their “social host” liability as well. In some states, social host liability is limited to people hosting parties at which minors are served alcohol. In other states, employers may be liable for underage drinking at work functions, and there are still other states in which the law is less clear. The safest action is to develop a policy and guidelines, with advice from your legal counsel and input from the human resources department, then distribute that policy to all employees.

For more: http://bit.ly/1ODgF55

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by | November 25, 2015 · 7:42 pm

California Businesses 40% More Likely to be Sued by Employees

California

It’s time for California insurance agents to revisit their commercial clients’ liability portfolio.

According to a report released this week from Hiscox, businesses in the Golden State are 40% more likely than their peers to be sued by an employee. In fact, just four states – New Mexico, Nevada, Alabama and Washington, DC – outstrip California when it comes to employee lawsuits.

The reasons why are complicated, but report authors suggest that state laws going beyond federal guidelines are the most likely cause of discrepancies in the rate of employee lawsuits between states. When it comes to California, that means strict regulation around anti-discrimination and fair employment practices that subject businesses to higher scrutiny from workers.

Discrimination, as defined by these laws, comes in many forms including age (over age 40), disability, national origin, race, color, religion, sex (including pregnancy) and genetic information (diseases or disorders in family medical history).

More clear is the effect such lawsuits have on businesses. According to Hiscox, the average legal dispute regarding an employment matter lasts 275 days and in 19% of cases, defendants are subject to a defense and settlement payment. When that happens, businesses can expect to bill their insurers an average $125,000 in claims while taking $35,000 in deductibles on themselves.

The report comes just months after a similar survey from Littler Mendelson, in which 57% of human resource and C-suit professionals said they expect workplace discrimination claims to become one of the top business risks in the next years.

The statistics are a serious argument in favor of ample employment practices liability insurance (EPLI) for California businesses. Without proper coverage, clients could end up on the hook for an extra $90,000, going by national averages. Inadequate limits could also cause a sting, though arguably less of one.

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

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by | November 20, 2015 · 7:15 pm

Preventing and Preparing for Terrorist Attacks

Terrorist

The current hostage situation at a Radisson Blu in Mali dredges up memories of the Mumbai, India terrorist attacks that took place in November 2008, which targeted a number of buildings, including the Taj Mahal Palace & Tower Hotel and the Oberoi Trident Hotel. At the time, LODGING reported on how to prevent and prepare for such attacks with advice from Kyle Olson of the security consulting firm the Olson Group. In light of recent events, here are a few tips he shared that are still relevant today.

1. BECOME A TOUGHER TARGET

Routinely change up security patterns and practices, and make the fact that you do so apparent; this will create uncertainty in potential attackers, and encourage them to look for a more “reliable” victim. Remove information from your web sites that isn’t essential, but which makes you vulnerable. Instead of detailed floor plans, use generalized, simplified drawings that don’t provide information on exits and serviceways; make intelligence collection harder. Move furniture and display fixtures in public areas around, change things up outside the hotel and inside, so that it is more difficult for an attacker to choreograph movements. Train personnel—security and staff—to recognize the difference between someone killing time and timing a kill. And teach them what to do when they think they have identified a potential bad actor.

2. DEVELOP A CRISIS PLAN

Objectively assess the hotel’s vulnerabilities, and routinely review that assessment, particularly in light of special/large events. “Red Team” how someone could attack and consider how to counter. Where do you shelter people? Is the staff trained to get people to safety/exits? Is the critical information that will be needed by public safety—guest registers, employee rosters, floor plans—readily at hand?

3. SYNCHRONIZE PLANS

The hotel’s plan must also reflect the plans, procedures and, above all, the needs of the local response agencies. Are hotel security and management personnel trained in the terminology of the National Incident Management System (NIMS)? NIMS is the language the cops, firefighters, and Feds will be speaking in a crisis. Remember, if the management team in the hotel is not able to plug into the response by public safety agencies with both information and understanding of the procedures being used, they will be marginalized. If hotel leadership is not seen as part of the solution, they will be considered part of the problem. If they are not able to engage constructively, they will have no influence in shaping the outcome of their property. If, on the other hand, they are seen as bringing value, their counsel will be sought out and they will have a hand in managing events.

4. TRAIN AND EXERCISE

Hotel personnel need to practice what their actions would be in a serious incident. This means knowing the plan, understanding their roles, and testing that understanding in exercises. These do not need to be complex, but they do need to be serious opportunities to evaluate the readiness of the hotel’s team. Ideally, the hotel should invite local public safety personnel into the exercises, to play out their roles. Not only will this provide hotel personnel with a sense of what will be expected of them, but it will provide an opportunity for the hotel personnel to demonstrate that they take the challenge seriously and that they have something to offer.

For more: http://bit.ly/1MH0jFN

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by | November 18, 2015 · 7:51 pm

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.

For more: http://bit.ly/1Nc7CLd

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by | November 2, 2015 · 7:23 pm

El Nino Property Preparedness Checklist

EL NINO PROPERTY PREPAREDNESS CHECKLIST

el nino

1. Property Ground Keeping: Make a general inspection of your entire yard area for dead trees or dead limbs, yard debris, outdoor furniture, or other objects that could be blown by El Nino storm winds. An afternoon spent tidying up the yard and either storing furniture and other loose items indoors or securing them can prevent a frantic scramble to collect items that have landed on your roof or in your neighbors’ yards.

2. Drains and Gutters: Make sure all drains and gutters are cleared of debris and functioning properly before the storm season. If buildings do not have gutters and drains, consider having them installed. Storm water runoff from impermeable sufaces (e.g., roofs, driveways, and patios) should be directed into a collection system to avoid soil saturation.

3. Roofs: Inspect your roof, or hire a roofing contractor, to check for loose tiles, holes, or other signs of wear and tear.

4. Retaining Walls: Visually inspect all retaining wall drains, surface drains, culverts, ditches, etc. for obstructions or other signs of malfunction, before the storm season, and after every storm event.

5. Slopes: Visually inspect all sloped areas for signs of gullying, surface cracks, slumping etc. Also inspect patios, retaining walls, garden walls, etc. for signs of cracking or rotation. Such signs might be indications of slope movement and if you notice any problems, it would be prudent to have the site inspected by a geotechnical engineer, especially in California fire areas.

6. Storm Drains: Visually inspect nearby storm drains, before the storm season and after every rain; if the storm drains are obstructed, clear the material from the drain or notify the Department of Public Works or public agency responsible for drain maintenance.

7. Follow-up and Other Concerns: If, after taking prudent steps to prepare your property for winter storms, you still have some concerns about slope stability, flooding, mudflows, etc., consider stockpiling sandbags and plastic sheeting. The sandbags can be stacked to form a barrier to keep water from flooding low areas. Plastic sheeting and visqueen can be placed on slopes and secured with sand bags to prevent water from eroding the soil.

8. First Responders: Establish a relationship with a professional restoration company ahead of time. During a storm, restoration companies will be busy. If they know you already, there is a stronger chance you will be placed at the top of the list. Your corporate office may already have a list of vetted companies to call.

For more: http://bit.ly/1N9LlaP

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by | October 27, 2015 · 6:32 pm

Hospitality Industry Legal Update: “Critical Control Points in Liquor Liability”

In this article, dram shop and liquor liability expert, Jeff Jannarone discusses critical control points in bar operations, including recourse options for handling intoxicated patrons.

Every bar or restaurant that serves alcoholic beverages is at risk of having intoxicated patrons. However, the mere presence of an intoxicated patron within an establishment does not necessarily indicate a breakdown in an establishment’s training or operations, nor does it necessarily indicate a violation of the standard of care within the industry.

The presence of intoxicated people in any environment increases the likelihood of crimes and/or injuries. While bars and restaurants are responsible for limiting alcohol consumption, it is challenging to prevent every patron from becoming intoxicated; consequently, the way that an establishment responds to the presence of an intoxicated person is often the crux of a liquor liability dispute.

Questions that are commonly at issue in liquor liability disputes include:

  • How effective was staff at identifying the intoxicated patron?
  • Was the intoxicated patron continued to be served alcohol?
  • What measures did the establishment take in safeguarding their customers and the public?

These issues represent critical control points that test how effectively staff was prepared to handle potentially dangerous situations.

Many states have a requirement that businesses that are permitted to serve alcohol not serve anyone who is visibly intoxicated; permittees also are responsible for providing proper measures to ensure the safety of any intoxicated person on their licensed premises (or when they leave?). These requirements are reflected in the standards of care for the industry and reinforced by the various professional training programs that promote the responsible service of alcohol (e.g., TIPS, TAM, RAMP, etc.). The modern standard of care goes well beyond simply removing drunken people from an establishment or passively posting the phone number for a taxi service. A well prepared bar or restaurant has a variety of best practice recourse options when they identify an intoxicated person.

For more: http://bit.ly/1MRhbcq

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by | October 26, 2015 · 5:32 pm

Hospitality Industry Risk Update: “7 Workers’ Comp Issues To Watch”

Today’s Workers’ Comp market is generally favorable, but several emerging medical and demographic challenges have the potential to upset the current balance. By better understanding the possible impact of these new variables on the market, buyers and brokers will be able to continue to protect employees—and their bottom lines.

MEDICAL CHALLENGES

1. The Affordable Care Act may well increase Workers’ Comp costs by increasing demand for medical services from a fixed number of providers. If more Americans can buy medical services, the cost of those services will rise. Beyond higher prices, greater demand will also lead to longer treatment and recovery times as claimants wait to get appointments, potentially impacting indemnity costs.

2. The growing use of—and cost for—physical therapy causes challenges. Fee schedules for physical therapy have increased over the past two years in nine states that have the greatest use of PT in Workers’ Comp claims. California increased its fee schedule for all physical therapy billing codes by 5% to 6% in March, while New Jersey upped its schedule by 3.6% last fall. Managing the utilization and cost of physical therapy is becoming a key issue, so much so that clients, prospects and brokers are asking TPAs more questions about their strategies in this area.

3. The variability of WC costs and treatments among states threatens the  market. There is no reason why the cost for treating the same type of work-related injury should differ significantly from state to state—but it does. The median medical benefit per Workers’ Comp claim by state is $26,124, according to NCCI data. California and Delaware have medical benefits per claim over 50% greater than the median, while Massachusetts and Rhode Island are well below half the median.

There is good news, however. Medical treatment guidelines and drug formularies continue to be developed in states across the country. As experts with a shared interest in cost-effectively delivering quality medical outcomes for injured workers, all of us must understand this issue, and translate that understanding into action by becoming involved in efforts to improve workers’ compensation systems and develop treatment guidelines and formularies.

For more: http://bit.ly/1P19DIw

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