Tag Archives: Hospitality
Infographic: How to Detect Bed Bugs
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Filed under Bed Bugs, Guest Issues, Hotel Employees, Hotel Industry, Maintenance, Management And Ownership, Risk Management, Technology, Training
Reduce Workplace Injuries, Boost Productivity
High levels of customer satisfaction in the hospitality and leisure industries are critical to the success of any property. It is even more challenging to maintain customer satisfaction while reducing costs associated with employee injuries and the workers’ compensation claims. Employees are continually trained on the nuances of customer service skills and customer interactions in order to achieve the best levels of service. However, maintaining a high level of productivity is difficult when employees have been injured. Increasing injury rates result in higher workers’ compensation insurance, medical care, and claim costs.
Taking a look at the causes of work-related injuries, implementing standardized work practices, and making simple changes can yield a significant decrease in injury risk and an increase in productivity. A single property within a national hotel chain has been able to decrease its workers’ compensation costs by $500,000 in the first year while improving its customer satisfaction ratings.
Within the U.S. hospitality and leisure industry, food services and accommodations employees represent 12.9 million of the 15 million employees. In 2014, the recordable injury rate among these employees was 3.6 injuries per 100 full-time employees. These injury rates can be higher among employees in departments such as housekeeping and banquet operations. One study indicated that up to 95 percent of the housekeepers indicated they experienced severe to very severe physical pain.
Any effective ergonomics and process improvement program should include aspects such as management support, employee involvement, training, problem identification, early reporting of injury symptoms, evaluation of hazard controls, implementation of hazard controls, and evaluation of progress.
Effective administration and implementation of each aspect is important, but knowing which changes will bring the most improvement in productivity and injury reduction can make a big difference.
Let’s take a look at housekeeping: Their work ensures proper cleaning as well as maintaining the visual standards of the brand. Over the past decade, consumers’ expectations of luxury as it relates to hotel rooms have increased. Furnishings are more luxurious and often include thicker mattresses, plush duvets, decorative bed skirts, and the inclusion of a variety of pillows.
In an effort to reduce injury risk while maintaining or improving customer satisfaction within a housekeeping department, we reviewed common tasks and identified the tasks that were most likely to cause injury. A detailed study was conducted of these common housekeeping tasks, such as cleaning bathrooms, changing and making beds, and removing trash and soiled linen. The evaluations determined the extent of injury risk factors and opportunities to improve the quality of the services performed. After the analysis, recommendations were made related to the selection of appropriate tools, the modification of techniques for cleaning showers and bath tubs to decrease awkward postures and minimize forces, and the identification of methods to minimize awkward postures and forces while changing beds and handling trash and dirty linens. One key factor in the success of these changes was training the employees in the appropriate methods, injury risk factors, and the proper use of tools. The changes made within the housekeeping department decreased duvet-making time by 32 percent while maintaining a standard look; reduced the number of awkward shoulder postures by 72 percent; and reduced the number of awkward back postures by 45 percent. Guests indicated an improvement by a 5 percent increase in customer cleanliness ratings.
Another department that commonly experiences a high number of injuries is the banquet operations department. Within the banquets area, server and setup tasks were also evaluated. Following similar principles, tasks were identified that had previously caused injury or were difficult to perform. Evaluations were again conducted and recommendations were made. These recommendations involved working with vendors to identify the changes to carts that could make the most impact on decreasing push/pull forces while not decreasing the load on the carts. Additionally, standardized methods of room setup and table movement were established. These simple changes and employee training yielded a decrease in injury risk, improved employee morale, and increased efficiency.
Maintaining high levels of customer satisfaction while minimizing employee injuries and workers’ compensation costs in hospitality and leisure industry is critical to the success of any property. Evaluation of tasks by a qualified professional (such as a certified professional ergonomist) can ensure that risk factors are appropriately identified and that the recommendations will adequately reduce injury risk. Minimizing costs, reducing injuries, improving efficiency, and improving customer satisfaction ratings are benefits of a successful ergonomics and process improvement program.
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Filed under Claims, Employee Benefits, Employee Practices, Health, Hotel Employees, Hotel Industry, Injuries, Insurance, Management And Ownership, Risk Management, Training
New Robotic Exoskeleton Technology is Here From Panasonic
Mobility may be one of the most important elements in maintaining personal autonomy. And now, thanks to the incredible technology behind robotic exoskeletons, the elderly, the injured, and many others can experience mobility like never before. In a new video, Panasonic unveils its latest achievements in the robotics field, applying advanced control and sensor technologies to create a motor-equipped robot that will assist with human body mechanics.
Panasonic has developed a pair of suits — one meant primarily for industrial purposes, and another to help the disabled. The power assist suits will help users perform manual labor and potentially dangerous tasks in a range of worksites, and Hiromichi Fujimoto, president of Activelink Co. (one of Panasonic’s in-house venture companies) noted, “We are proposing robotics to help at these worksites, because there will always be a certain level of work that must be done by people, and these power assist suits can help reduce the physical strain during such work.”
To help with lifting and carrying heavy loads, Panasonic has introduced the AWN-03, an assist suit designed specifically to provide lower back support. By sensing the wearer’s motion when lifting or holding heavy objects, the suit sends a signal to its motors to jump into action. By raising the user’s upper body while simultaneously pushing on their thighs, the suit promises to reduce stress on the lower back by 15 kg.
There are also two additional suits that could be used in industrial settings — the PLN-01 (the “Ninja”) is meant to help the user’s motion while walking and running, whereas the Power Loader is heralded as a powerful suit perfect for use during disaster relief, construction, and public works.
On the other end of the spectrum, Panasonic has unveiled suits meant for the elderly. “As Japan has becomes an aging society, Panasonic is aspiring to make its contribution by supporting the elderly and their families lead a comfortable life full of smiling faces and laughter” explained Hitoshi Sasaki, assistant director of Sincere Kourien, an elderly care facility run by Panasonic Age-Free. “There are many instances that can be straining to both caregivers and care recipients. Just moving from the bed to a wheelchair can be a very energy consuming for both parties.”
For more: http://bit.ly/1UGTjAW
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Filed under Claims, Employee Practices, Health, Hotel Employees, Hotel Industry, Injuries, Management And Ownership, Risk Management, Technology, Workers' Compensation
Workplace Violence – How to Deal with a Disgruntled Ex-Employee
You are an executive working intently in your office when your assistant calls and informs you that a disgruntled ex-employee has shown up at the facility with a weapon and is threatening violence. Will you know what to do, or better yet, what not to do?
Workplace violence can be defined as any act that creates intimidating, hostile, and offensive or a threatening work environment through unwelcome words, actions or physical contact. As we have seen on multiple occasions, workplace violence and active shooter occurrences have been on a steady incline in this country. Are you and your company prepared?
There are two types of workplace violence that need to be taken into consideration. First is the external variety – criminal activity from a non-employee, client or customer. Second is the internal variety of a problem employee, employee personal relationship, hostile individual due to disciplinary actions or a facility closing. Be prepared by taking some very easy measures:
- Have a  written policy that is known throughout your organization
- Take the position of ‘no tolerance’ for this activity
- Train employees and provide ongoing training
- Make sure your plan protects first, then concentrates on compliance
- Understand and effectively communicate the legal implications
The potential deadly situations are reasonably foreseeable and this should be the standard used for compliance and determination of liability. Understand what data you need to assist in the prevention of workplace violence. You not only have a legal responsibility but the obligation to your workforce. Negligent hiring, high-risk terminations, retention, security, and poor training open you and your organization to the possibility of a workplace violence incident. Human resources plays a key role in your workplace violence plan through effective pre-employment screening, establishing discrete communications channels, an Employee Assistance Program and coordination with your security personnel regarding response plans.
Do not allow yourself to make these five critical mistakes:
- Denial and avoidance
- Not having a threat response plan
- Acting too hastily
- Lack of total workforce participation
- Insufficient assessment process
Coordinate a case assessment team and make sure they understand their purpose, make-up, objectives, and documentation measures. The need to recognize the behavioral warning signs that signal potential trouble and that evaluation of behavior is not ‘profiling’.
Protective measures include:
- A facility security audit
- Obtaining local crime statistics
- Recording a history of incidents
- Personnel training
- General security awareness training
- An established liaison with local law enforcement.
Remember, ignorance does not relieve an organization of responsibility. In summation, an organization has a Duty of Care responsibility to their employees and must plan, train, recognize, manage and respond to this growing problem within the business community.
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What the Erin Andrews Lawsuit Means for Hoteliers
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.â€
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.â€
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.â€
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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Filed under Crime, Employee Practices, Guest Issues, Hotel Employees, Hotel Industry, Liability, Management And Ownership, Privacy, Risk Management, Training
The Rising Cost of Money (Lodging Magazine)
Troubling events in the global economy—stock market volatility, weak growth in China, and plunging oil prices, among others—coupled with a moderate slowdown in industry growth, have hoteliers more cautious regarding new business opportunities. However, hiccups in the global economy do not mean the hospitality world stops turning. Hoteliers still find themselves in a time of healthy growth and industry dynamism, and many owners are looking to reposition their properties while the economy can support it.
That said, property improvements can still be expensive. This especially holds true for brand-mandated property improvement plans (PIPs), which some say have become increasingly aggressive in recent years. According to Boaz Ashbel, managing director of the Aztec Group, a full-service investment banking firm located in Miami, Fla., one of the main drivers of this push is the industry’s desire to capture the millennial demographic, whose footprint in the hospitality marketplace grows larger every year.†Many brands are changing the look and feel of their properties to try and appease the millennial traveler,†Ashbel says. “This is true both in new brands and in PIPs for established brands—all of the decision makers have the same goal, and it’s something that hotel owners and operators will have to tackle sooner rather than later.â€
There are several situations in which hoteliers may find themselves facing an aggressive PIP or redevelopment project. One of the most common in today’s economic climate happens when a property changes hands. “If the hotel isn’t entirely up-to-date regarding brand standards, it may present a problem for a potential buyer,†Ashbel cautions. This is because when a hotel falls under new ownership, the franchise is not assumed by the new owner—he or she must apply for the flag as though they are applying for a new franchise. And, for a hotel to meet the requirements of a new franchise, it must reflect the latest brand standards. “An astute owner who is planning to sell a particular property is wise to order a change of ownership PIP from the brand before even exposing that hotel to the market,†Ashbel says.
Due to the very active state of the lodging marketplace, with a huge number of properties being bought and sold, most lenders know that every branded property they work with will likely have a PIP component. “Moreover, they should be demanding that the money that will be acquired for the PIP is going to be put up and reserved in closing exclusively for the PIP,†adds Ashbel, who says that every single transaction he’s seen in this time of high activity has had some sort of a PIP component.
And, per Ashbel, hoteliers looking to acquire a property and keep it branded, or rebrand it under a new flag, should always plan for investments in an improvement plan. “If the buyer doesn’t take these steps, she’s in for a rude awakening when she goes to sign her franchise agreement,†he says.
But what if you’re a hotelier who isn’t in the process of buying or selling a property but still needs to pay for a large-scale PIP or renovation? Peter Berk, president of PMZ Realty Capital, a hotel finance group based in New York City, explains that refinancing could be the answer if the hotelier doesn’t have the liquid capital on hand. “There is a lot of refinancing going on right now in the lodging industry for renovations and PIPs,†he says. For example, if someone has a $6 million loan pending due, and he needs to take on a major PIP, he can refinance the property for $8 million and have the lender hold back the difference for the PIP. “We see this type of situation quite often,†Berk adds.
Luckily for hoteliers, there are a wide variety of lenders in the hospitality marketplace who still have a lot of liquidity available for loans. “There are a bunch of lenders out there offering different types of loans—furniture, fixtures and equipment (FF&E) loans, credit funds, bridge loans, Small Business Administration (SBA) loans, commercial mortgage-backed security (CMBS) loans, regular bank loans—everything just depends on the hotel’s business plan,†Berk explains.
Jordan Ray, managing director of financial advisory firm Mission Capital’s debt and equity finance group, says that while there are many loan options out there, it is getting increasingly difficult to finance improvement plans. “As a whole, the financing business for hotels is certainly tighter than it was a year ago,†he says. Ray attributes this tightening to the high levels of supply in the lodging marketplace, especially in primary markets like New York City.
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Lawsuit Alert – Hotels Renting to Minors
CH&LA alerted its members last year that legal claims were being asserted against numerous lodging properties for refusing to rent to unaccompanied minors. The person at the center of most of those claims (Jonathan Asselin-Normand) is continuing his long-running campaign against California lodging properties raising such claims.
As CH&LA has repeatedly advised its members, both the California Unruh Civil Rights Act and the Fair Employment and Housing Act prohibit blanket policies denying accommodations to people solely because they are unaccompanied minors. The minimum damages for violating the Unruh Act is $4,000, plus attorney’s fees.
However, where a minor unaccompanied by an adult seeks accommodations, hotel staff may require a parent or guardian of the minor, or another responsible adult, to assume, in writing, full liability for any and all proper charges and other obligations incurred by the minor for accommodations, food and beverages, and other services provided by or through the innkeeper, as well as for any and all injuries or damage caused by the minor to any person or property. California Code 1865(d)(1).
What Members Should Do ASAP:
- Review your policies, and if you have a blanket policy against accommodating unaccompanied minors, change that policy to comply with the law.
- If your policy is on your web site or otherwise in your marketing materials, delete all reference to it.
- Make sure all staff members know that your hotel does not have a blanket prohibition against accepting unaccompanied minors. Be sure to constantly remind them of this fact.
- Check with your third-party booking entities to see what, if anything, they say about your hotel’s policies involving minors and children. Be sure that they comply with the law.
- Consider utilizing a written form with a responsible party acknowledging their liability for the minor. Please click here for a sample.
If you have questions about this, feel free to contact CH&LA’s Member Legal Advisor, Jim Abrams, at jim@calodging.com.
For more information:Â http://bit.ly/1QPre4h
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Insurance Helps Protect Against Data Breach Fallout
Joshua Gold of Anderson Kill speaks about the different types of insurance coverage to protect against data breaches at the Hospitality Law Conference. (Photo: Bryan Wroten)
The past year was a big year for data breaches in the hotel industry, and industry experts say there’s no sign of it stopping any time soon. That means hoteliers not only need to work on prevention, but they also need protection in case an attack does occur.
Panelists in the session “Nailing down responsive cyber coverage that responds to hospitality industry risks†at February’s Hospitality Law Conference told attendees that everything about the current digital age that makes it great, such as connectability and massive data storage, also makes it a risk.
Attempting to list all of the data breaches in the past 12 months would overwhelm the presentation screen, said Joshua Gold, a cyber-insurance attorney at Anderson Kill, and the problem continues to grow.
“It’s getting worse, not better,†he said.
- For more from the Hospitality Law Conference, read how hoteliers can prepare for the likely changes to overtime exemptions.
Insuring for different scenarios
Darin McMullen, an attorney at Anderson Kill, said there are four overlapping causes of data breaches at a company:
- Accidental internal, a common cause of breaches, occurs when an employee loses a device with company business data on it, and it might fall into someone else’s benign or malicious possession.
- Accidental external breaches occur through third-party vendors or subcontractors who have access to a company’s system or network. While they’re not trying to compromise their client’s security, they may cause harm through their own negligence.
- Intentional internal breaches happen when a disgruntled employee creates the breach. This can be a common problem in hospitality where turnover can be high. Employees don’t necessarily have to be high-level to access sensitive data.
- Intentional external breaches are the more traditional hacking events caused by criminal organizations or hacker activists, or hacktivists.
“Some you have control over; some you have virtually no control over,†McMullen said, who added that hoteliers should review their insurance options to protect against different risk exposures.
Gold said he’s working on an insurance claim for a client who had a former employee introduce malicious code into the company’s system. The code fried every controller, he said, causing physical damage to real pieces of hardware. For a networking company, this was a huge loss.
“The insurance company is saying electronic commands can’t cause real property damage,†he said. “It is covered under the literal language, but they don’t want to set that precedent. We will have to sue them.â€
When looking for different cyber-insurance policies, Gold said, it’s important to keep in mind all the potential scenarios as some have provisions that exclude what hoteliers might need and think would be included, such as the physical damage in his client’s case. He said hoteliers should work with a savvy broker who specializes in cyber-insurance packages. There are so many different primary forms out there, he said, which can change every three to four months based on what clients face.
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Filed under Guest Issues, Hotel Industry, Insurance, Management And Ownership, Risk Management, Technology, Theft
What Should Your Hotel Brand Know About Generation Z?
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.â€
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.â€
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.â€
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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Congress Cracks Down on Hotel Scams
Imagine you’ve been planning all year for your family vacation at the beach. You find the perfect hotel—a spacious room with a view of the ocean and a big pool for the kids—and book the room using an online travel site. The whole family is excited for a week of surf, sand, and relaxation.
Everything is going great until you arrive at the hotel. After a few minutes of clicking around on the computer, the front desk woman asks you to spell your name again. Her brow furrows, and you start to worry. You are exhausted and just want to crawl into a clean bed and get some sleep. What is going on with this hotel room?
Now the manager arrives to help. “When did you make this reservation?†she asks. You tell her and you hear her typing some more. “Could it be under another name?â€Â You feel a sense of panic as you shake your head no. What could be happening?
Finally, the bad news: There is no reservation. The website where you made your booking was a fraud, and now your dream vacation has become a nightmare. Many vacationers, and hoteliers, find themselves in this exact situation. According to the American Hotel & Lodging Association, millions of fraudulent bookings are made every year as these deceptive websites and call centers mislead vacationers by giving the appearance of being connected to a hotel, but actually have no legal relation to the brand or lodging property.
For consumers, the fraud takes several different forms. Unassuming guests could be charged additional hidden fees when they arrive, fail to get the accommodations they requested, lose expected loyalty points, or worse, they could learn that their reservation was never actually made. In the last year alone, close to 15 million reservations were made on such deceptive sites, resulting in hotel guests finding themselves out hundreds of dollars for either a worthless reservation or one that delivered much less than promised. It is estimated that these scams have cost upward of $1.3 billion per year in lost reservations, extra fees or charges, lost rooms, and costly inconveniences.
As you know, hotels are often mistakenly blamed for these fake reservations. Though they do all they can to assist swindled travelers, their reputation suffers as these stories are shared online or by word of mouth.
For these reasons, I have introduced bipartisan legislation with U.S. Reps. Ileana Ros-Lehtinen (R-Fla.) and Bill Shuster (R-Pa.) in Congress to help crack down on call center and online hotel scams. First, our legislation would require all third-party hotel booking websites to disclose, clearly and conspicuously, that they are not affiliated with the hotel for which the traveler is ultimately making the reservation. This new requirement would help consumers tell the difference between name-brand hotel websites and fraudulent ones masquerading as name-brand sites.
Second, our legislation would give state Attorneys General the ability to go after perpetrators in federal court with the same remedies available to the Federal Trade Commission (FTC). Today, only federal authorities can fully penalize individuals who commit online hotel booking fraud. If the offense is small, federal authorities may forgo prosecution to go after more expansive crimes. Giving state Attorneys General the ability to pursue damages and restitution for victims will leverage the power of all 50 states to hold fraudsters of all levels accountable and deter criminals.
Our bill would also require two provisions to help illuminate the true extent of these crimes. It requires the FTC to produce a report on the impact of these fraudulent sites on consumers and it encourages the FTC to simplify its online complaint procedure for reporting hotel booking scams, a request we have recently made in a letter to FTC Chairwoman Edith Ramirez.
My colleagues and I understand that online fraud is a serious problem for not only consumers, but also the entire lodging industry. It is also an especially significant issue for Florida, which is the top travel destination in the United States. With that said, I look forward to continuing to work with the AH&LA to move this important legislation forward to Congress, and tackle these scams. This way, travelers can get back to their vacations and hotels can focus on providing the world-class services that the American hotel industry is known for.
For more:Â http://bit.ly/1Qgrg7k
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