Tag Archives: Hotel Security

by | December 18, 2015 · 6:55 pm

Impacting the Bottom Line in 2016

2016

2016 promises to be the most profitable year our industry has ever seen due to strong rate growth, minimal supply impact, low interest rates and oil prices, and a somewhat minimal impact from disruptors like Airbnb, living wage bills, and health care costs. As we do every year, following are the trends that will help you maximize your business opportunities in the year ahead.

Analytics rule:

Everything is trackable now. Not only can we see how much attention a certain ad campaign is getting, but we can see the geographic location of the users interacting with it, their age, and a general idea on their income. Use this information to target your marketing efforts to your specific buyer persona and watch your ROI skyrocket. Also, arm yourself when looking into digital advertising campaigns. Do you know how much one visit to your website is worth in dollars? Knowledge is power and you have it all available at your fingertips.

Consolidation is only just beginning:

The Marriott acquisition of Starwood and the Expedia acquisition of Orbitz are harbingers of a consolidation coming in the hotel industry. While it is too soon to determine what other brands or companies will decide to come together, it is clear that we are entering the age of consolidation as the economy enters the mature stage. The impact on guests and hoteliers will only be determined as this wave of consolidations plays out, but for the immediate future, bigger is better.

2016 Digital marketing is dominated by mobile and video:

The average user consumes more than 65 minutes of live video a day and this number is growing fast. Periscope alone averages 2 million daily active users with over 10 million total accounts created as of August 2015—barely 5 months after it launched. Millennials look at live streaming video the same way past generations viewed television.

Invest in capex immediately:

While the money is available and cheap, take advantage now of major expenditures including renovations that may not only be required by the brand, but will also revitalize your hotel now and through the next downturn. Remember, new supply is coming and a tired hotel loses twice—in 2016 when rates can be pushed to pay for the capital expense and in the future when demand drops and those who have renovated win! Moreover, the sharing economy could have a material impact on lodging demand by 2017.

Millennial mindset trends toward group settings:

Millennials and those who have the “millennial mindset” are looking for John Naisbitt’s high-tech, high-touch experience. They like a personalized, gourmet experience for a reasonable price and this has produced all new lobby designs in the hotel sector. Lobby bars and hotel restaurants are wide open with combination work, play and eat/drink spaces designed with this youthful customer in mind. So give them what they want—personalized experiences that create value. This group is quick to criticize via social media, so “wow” customer service is your best protection here.

Optimal channel mix:

Online travel agencies (OTAs) are having a tremendous impact on distribution. They are responsible for incremental demand and the OTA’s extensive marketing campaigns and sophisticated platforms reach travelers who might not find your hotel any other way. Owners still view OTAs as an expensive channel, but it’s a channel we most definitely need going into the next downturn. Find ways to use OTAs without relying on them as your primary resource—and get more eyeballs to your own web site.

For more: http://bit.ly/1OcwrRp

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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 | 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 9, 2015 · 11:55 pm

Wifi blocking is illegal (FCC fines Hilton Hotels)

wifi

FCC takes two enforcement actions on WiFi

On November 2, 2015, the FCC issued two separate news releases on Wifi blocking. In one action, the FCC announced a $718,000 fine against M.C. Dean, one of the nation’s largest electrical contracting companies, for blocking personal mobile “hotspots” of convention visitors and exhibitors who tried to use their own data plans at the Baltimore Convention Center to connect to the Internet rather than paying M.C. Dean substantial fees to use the company’s Wifi service.

FCC fines WiFi hotspot provider M.C. Dean

According to the FCC, as the exclusive provider of Wifi access at the Baltimore Convention Center, M.C. Dean charges exhibitors and visitors as much as $1,095 per event for Wifi access. Last year, the Commission received a complaint from a company that provides equipment that enables users to establish hotspots at conventions and trade shows. The complainant alleged that M.C. Dean blocked hotspots its customers had tried to establish at the Baltimore Convention Center. After receiving the complaint, FCC Enforcement Bureau field agents visited the venue on multiple occasions and confirmed that Wifi blocking activity was taking place.

The Enforcement Bureau’s investigation found that M.C. Dean engaged in Wifi blocking at the Baltimore Convention Center on dozens of occasions in the last year. During the investigation, M.C. Dean revealed that it used the “Auto Block Mode” on its Wifi system to block consumer-created Wifi hotspots at the venue. The Wifi system’s manual describes this mode as “shoot first, and ask questions later.” M.C. Dean’s Wifi blocking activity also appears to have blocked Wifi hotspots located outside of the venue, including passing vehicles. The Commission charged M.C. Dean with violating Section 333 of the Communications Act by maliciously interfering with or causing interference to lawful Wifi hotspots.

FCC fines and warns Hilton

In a separate announcement, unrelated except as to the subject matter, the FCC proposed a $25,000 fine against Hilton Worldwide Holdings, Inc. for “apparent obstruction of an investigation into whether Hilton engaged in the blocking of consumers’ Wifi devices”. A consumer complaint alleged that Hilton was blocking visitor’s Wifi in Anaheim, California in order to force them to pay a $500 fee to access Hilton’s Wifi. Other complaints alleged similar Wifi blocking at other Hilton-brand properties.

In November 2014, the FCC Enforcement Bureau sent Hilton a letter of inquiry requesting information concerning basic company information, relevant corporate policies, and specifics regarding Wifi management practices at Hilton-brand properties in the United States. After nearly one year, Hilton has failed to provide the requested information for the vast majority of its properties. The proposed fine and announcement to Hilton included a demand to immediately provide the essential information and documents about its Wifi practices, and warned that Hilton may face significantly higher fines for continued obstruction or delay.

For more: http://bit.ly/1lgp8Bz

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by | October 30, 2015 · 5:48 pm

Management Update: “How to Future-Proof Your Hotel Company”

Smart hotel executives spend time dealing not only with the challenges of today but also the challenges of tomorrow. I don’t mean tomorrow as in the day after today. I mean tomorrow as in the future, six months from now, five years from now.

Our copycat industry is historically bad at this. We often take note of obstacles only after we’ve hit them head on. In a daze, we then rush to adopt the tactics of our nearest competitor.

Why? Maybe we’re not looking far enough ahead. Or maybe we’re not looking for the right signals ahead.

Across all industries, executives’ future-proofing exercises typically revolve around the proverbial Next Big Thing—what’s coming down the pike that’s going to change the world as we know it.

During a keynote at this week’s Marketing Outlook Forum, J. Walker Smith of the Futures Company suggested a different tact: The “Vanishing Point” approach.

It’s hard to spot the “Next Big Thing,” Smith said. When they first materialize, they’re often too small to notice. And they come on quickly, which makes it difficult to react when you finally do notice them.

Vanishing Points are the opposite, Smith said. They are the points at which big, established factors of influence wane out of relevance. That creates a vacuum that must be replaced by something new.

Spot them early, and you can begin to anticipate what will fill the void.

It’s like a big tree falling the in the forest, Smith said. That allows sunlight to penetrate the canopy and foster growth for something new.

An example: Screens are getting smaller. What once was a desktop became a smaller laptop which became a smaller tablet which became a smaller smartphone. Now wearables are on the rise, and screens are getting even smaller.

“This is the big vanishing point,” Smith said. “The active digital screen is going away. It is being replaced by sensors, or passive digital.”

Shoes will connect to Google Maps and buzz the right or left foot depending on which way you need to turn. Embedded technologies will track your health and fitness.

Instead of inputting data into a screen, sensors will track your behavior and send you information before you even know you needed it, Smith said.

He called it the “pivot to passive.” In the ecommerce space, Amazon is working to patent anticipatory shopping software that sends you products without you even putting them in your online shopping cart.

Think of that in travel context, Smith imagined. The agonizing booking funnel becomes an intuitive, anticipatory process that actively monitors your behavior and schedules a hotel stay accordingly.

Will it happen tomorrow? I hope not. (I’m not ready for buzzing shoes.) But it could happen one day. Maybe it will even be the Next Big Thing. Time to get out in front of it.

For more: http://bit.ly/1LGI05j

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by | October 28, 2015 · 6:17 pm

Tech Update: “Hotel Apps – Nightmare or Blessing?”

Most hotel chains and many individual hotels have their own hotel apps – a small program for smart phones, which is supposed to facilitate the check-in process, provide additional information, replace the room key card, and eventually support and facilitate the next booking at the hotel.

But are apps really the ultimate solution? These small programs can easily turn into an expensive exercise and they have to be programmed for the various operating systems. Most importantly, an app should be embedded in a centralized guest-oriented IT structure.

The hotel business is often compared with the airlines business. This is, however, misleading, as frequent travelers – the target group hoteliers like to attract – mainly use the same airline. Surveys show, however, that this is not the case when it comes to choosing a hotel. On average, a frequent traveler has four loyalty cards from different hotel companies and eventually has to get used to several apps. Is this a client-oriented approach or just an IT trend, which managers cannot resist to follow?

At the beginning of the Internet age IBM’s slogan was “Jump in!”. But not the ones who just jumped in and followed the latest trends have become or are successful, but those who took some time to verify, analyze and then deliberately chose the right – client-focused – strategy.

On the one hand, an app has to suit the respective overall concept; on the other hand, it has to be accepted by the guests. This is the main difference between the OTAs that focus on the guest, and many hoteliers, who just love their product. The guest should always be in the focus. This rule is taught to every trainee or student in the first year of apprenticeship or studies.

The figures show that consumers increasingly consider apps as annoying. The result is that downloads are stagnating considering the increasing share of smart phones in the total market. Travel apps only come in seventh in the download ranking. There is not even a separate category for hotel apps.

For more: http://bit.ly/1OZ8AdN

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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 21, 2015 · 6:09 pm

Hospitality Industry Management Update: “Investors Bet on Boutique and Lifestyle Hotels”

bouqitue

The numbers paint a rosy picture for developers and owners who want to dip their toes in the boutique, lifestyle, and soft brand segments. Collectively, these arenas are an $11.5 billion industry and growing, according to a report by The Highland Group.

Demand has increased for boutique, lifestyle, and soft brand hotels over the past six years, clearly since the recession, says Kim Bardoul, a consultant with the Atlanta-based hotel consultancy group and co-author of the 2015 report. For example, with lifestyle properties 300 rooms and under, demand grew at an annual average pace of nearly 20 percent from 2009 through 2014—far above the rate of overall U.S. hotel demand growth of 4.2 percent, the report shows.

“The independent boutique has remained steady in growth, but the soft brand and lifestyle segments have clearly grown stronger in the past two years,” Bardoul says. “I really expect that to grow, because of the awareness the brands have brought to the industry.”

During the same six-year period, supply for lifestyle hotels and soft brands, which are newer products to the market compared to the more established boutique segment, grew at a compound annual average rate of 11.5 and 17.8 percent, respectively. Meanwhile, compound boutique hotel supply grew 3.1 percent—over three times the rate for the U.S. hotel industry overall. Compound demand change for the boutique segment was 6.7 percent, compared to a 4.2 percent increase for all U.S. hotels.

To compile the report, The Highland Group pored through STR hotel census data and qualified hotels into these three segments (see chart). Bardoul says they classified boutique hotels as unique in style, small, and either independent or affiliated with small systems (think Delano by Morgans Hotel Group or Thompson by Commune Hotels & Resorts). Of those boutique properties, 21 percent have less than 60 rooms and 17 percent have 160 to 300, and they range in design and building type. Boutiques have a strong representation in California, New York, and Miami, but appear in at least 46 states, she adds.

“Boutique is a popular but loosely used term, and most people associate it with small,” she says. “Most definitions you pull up use the word ‘small,’ but they also use the words ‘unique,’ ‘highly specialized,’ ‘niche,’ and ‘elite.’ We used that criteria similarly to distinguish between your typical independent hotel, which is very limited in service or amenities without a specific design, from all the others.”

In response to changing traveler tastes and adapting interests of their development communities, the chains have responded by introducing lifestyle and soft brands. The report describes lifestyle brands as prescribed franchise products that are adapted to current trends (e.g., AC and Moxy by Marriott, Canopy by Hilton, Hyatt Centric). Soft brands like Ascend by Choice, Autograph by Marriott, Curio by Hilton, and Tribute by Starwood give hotel owners and operators the opportunity to affiliate with a major chain distribution system while retaining the unique name and properties of an otherwise independent hotel.

“Developers and owners are seeing increased interest in what I’m calling the ‘now’ traveler, and there’s an opportunity to capitalize on that with little risk, especially if you go through a brand,” Bardoul says.

For more: http://bit.ly/1hU4VPJ

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by | October 8, 2015 · 3:39 pm

Hospitality Industry Security Update: “Developing a Cyberbreach Strategy”

RM_10.15_cyber_strategy-630x420

Throughout the business world, breaches have become a constant reminder of the critical need to assess and take action on cyberrisk. But they can also make addressing the issue seem like an ever more daunting task, leading many to either put off substantive measures or blindly buy the latest insurance or software to “take care” of the problem and move on.

“The biggest mistake companies make in the breach recovery process is just not being aware of the risk in the first place,” said John Mullen, managing partner at Lewis Brisbois Bisgaard & Smith LLP and chair of the firm’s data privacy and network security practice. “You would be amazed—I do up to 100 presentations a year, and at 80% of them, people still look at me like it’s the first time they have heard about it, and I have been doing this for over a decade. The people in the know are in the know, but there is an amazing amount of people who have no clue.”

There are countless ways a cyberbreach can unfold, and countless ways response can go wrong, but laying the strongest possible foundation ahead of time ultimately makes the difference between successful response and absolute disaster for a company that gets hacked or otherwise compromised. According to Mullen, a breach coach who reports that his firm sees a new breach case every business day of the year, “If you don’t do all of the prep stuff, you’ll never get response right.”

For more: http://bit.ly/1GycVMP

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by | October 2, 2015 · 6:48 pm

Hospitality Industry Tech Update: “Two Digital Disruptors Hurting Hotels”

Airbnb’s price positioning play—accommodations often are less expensive than similar hotel rooms—is not sustainable, he said.20150730_distributioin_RSSDisrupter Once the platform is forced onto a level playing field and starts collecting taxes, it will costs hosts more to do business.

In an industry with so many variables, one thing is certain: Hoteliers are woefully inadequate when it comes to technological innovation. And that makes the impact felt by the so-called disruptors all the more disruptive.

Thus concluded a panel of owners and operators titled “Disruption 2020: The digital marketplace” at the Revenue Strategy Summit.

“We’re still stuck in the Stone Age,” said Shai Zelering, managing director of operations and asset management for Thayer Lodging, Brookfield Hotel Properties. Instead of investing in new technologies, hoteliers are more obsessed with new guestrooms amenities that ultimately don’t matter, he said.

“It’s about priorities,” he added.

To that end, panelists identified the two major disruptors that require the industry’s immediate attention.

For more: http://bit.ly/1MOx3yS

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