Tag Archives: Legal Issues

Hospitality Industry Management Update: “Here Are The Top 5 Business Risks For 2015”

For businesses, the main cost of a cyber attack involves the impact to their reputation and the resulting financial damages, as well as the loss of customer business. The breaches at Sony, Target, Staples and Home Depotlocks demonstrated the damage that can be caused to corporate reputations. Seventy-one percent of customers indicated they would leave an organization following a data breach according to the Edelman Privacy Risk Index

The globalization of today’s economy means that businesses are more interconnected than ever, creating a greater risk of business interruption, supply chain disruption, and exposures that can quickly multiply.

According to UNCTAD, over the last 50 years the number of multinational companies has grown exponentially from 7,000 to almost 104,000, and could reach more than 140,000 by 2020.

The Allianz Risk Barometer 2015 surveyed more than 500 risk managers and corporate insurance experts in 47 countries to identify the primary challenges facing businesses this year. Some risks such as political upheaval, cybercrime and business interruption were viewed as a greater risk, while natural catastrophes, technological innovation and market stagnation were viewed as having less of an impact.

Here is a look at the top 5 business risks for 2015 as identified by the Allianz Risk Barometer.

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Filed under Claims, Crime, Guest Issues, Hotel Industry, Insurance, Management And Ownership, Risk Management

Hospitality Industry Management Update: “How Lower Fuel Costs Will Pay Off for Hotels This Year”

Beyond just travel, oil prices also have a role to play in the operational expenses of hotels. Lower prices can bring down utility bills and transportation costs on goods and services and, depending on how long oil prices stay low, propertiesfuel may see this impact their bottom line. “There’s certainly going to be an operational benefit,” says PKF Hospitality Research President Mark Woodworth. “The ultimate benefit is mitigated quite meaningfully by the fact that 45 to 50 percent of hotel expenses are labor related.”

The 50 percent drop in oil prices during the second half of 2014 has put plenty of cash into consumers’ wallets and that could mean good things for the lodging industry this year. Crude oil is selling for $47.64 per barrel today compared to over $90 a year ago. And while prices have started to stabilize a bit, there’s still a chance for them to decrease even further due to the glut of crude and the expectations of weak global growth pulling down the market.

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Filed under Hotel Industry, Maintenance, Management And Ownership

Hospitality Industry Risk Update: “Preventing and Reacting to Child Trafficking”

While it’s important to speak up if suspicious behaviors arise, Guelbart stresses the importance of carefully assessing and reporting the situation. Trafficking endangers not only the victim in question but everyone underTrafficking-620x330 the hotel’s roof. “Trafficking is often connected with other criminal activity, including drugs or violent assault, and this can jeopardize the safety of hotel guests and employees,” Guelbart says. “You should never, ever directly get involved in a potential sex trafficking situation.”

Human trafficking may seem like a distant problem—something that only happens abroad or in the movies—but traffickers have checked into hotels across the nation. As the world’s second largest criminal industry, human trafficking exploits 100,000 to 300,000 American children (ages 12 and up) every year. In New York City alone, 44 percent of the child victims were sexually exploited in hotels.

The American Hotel & Lodging Educational Institute (AH&LEI) and ECPAT USA, an organization dedicated to ending child sexual exploitation, have joined forces to educate hotel owners and employees on this issue. “Traffickers are now using technology. They’re selling children online—less and less on the street—and they might be living in a hotel setting, or they’ll bring the victim to a hotel for the exploitation,” says Michelle Guelbart, ECPAT USA director of private sector engagements.

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

Hospitality Industry Technology Update: “Does YOUR Website Have to be Accessible Under the Americans with Disabilities Act?”

Clearly, it has no brick-and-mortar store that we can shop in so the answer should be “no ADA coverage for its website.” That is exactly what happened in its California district court case (Cullen).Handicap-Assessible1-300x225 But, in Massachusetts, the district court case (National Association of the Deaf) went the other way. Law school professors call such cases “outliers,” but in the courtroom today’s outlier sometimes becomes tomorrow’s conventional wisdom.

Is the internet a place of public accommodation: a virtual town hall or a virtual shopping mall or a virtual movie theater? Courts still struggle with that.

Physicalist courts say that the ADA requires a physical location. Ouelette v. Viacom, No. cv 10-133-M-DWM-JCL, 2011 WL 1882780 (D. Mont. March 31, 2011) (no ADA claim re YouTube); Noah v. AOL Time Warner, 261 F. Supp. 2d 532 (E.D. Va. 2003) (same re: chat room); Earll v. eBay, Inc., No. 5:11-cv-00262-JF (HRL), 2011 WL 3955485 (N.D. Cal. Sept. 7, 2011) (same: no ADA claim re eBay); Cullen v. Netflix, Inc., 880 F. Supp. 2d 1017 (N.D. Cal. 2012) (same: no ADA claim re Netflix); Jancik v. Redbox Automated Retail, LLC, No. SACV 13-1387-DOC, 2014 WL 1920751 (C.D. Cal. May 14, 2014) (same: no ADA claim re redboxinstant.com).

Virtualist courts say there are places in the heart and in the mind too. Those courts proclaim that the core meaning of the ADA is that “the owner or operator of a store, hotel, restaurant, dentist’s office, travel agency, theater, Website, or other facility (whether in physical space or in electronic space …) that is open to the public cannot exclude disabled persons from entering the facility and, once in, from using the facility in the same way that the nondisabled do.”

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Filed under Hotel Industry, Management And Ownership, Risk Management, Technology

Hospitality Industry Management Update: “New Year, New Challenges: What Hospitality Employers Need to Know”

As state and federal budget cuts tend to wane, the Department of Labor (DOL) is expected to step up enforcement against hospitality employers in the coming year. restaurant workerBecause the DOL considers the hospitality industry as a “fissured” industry, owners, franchisors, franchisees and management companies should be prepared to deal with inquiries, particularly in the areas of tipped employees and the misclassification of employees.

According the U.S. Bureau of Labor Statistics, the hospitality sector added 321,000 additional jobs in 2014. With all those new employees, as well as the continued addition of jobs we expect to see in coming year, here are our top predictions for labor law issues that will play a vital role in the hospitality industry in 2015.

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Filed under Employee Benefits, Hotel Employees, Hotel Industry, Hotel Restaurant, Labor Issues, Management And Ownership, Training

Hospitality Industry Risk Management Update: “Front Desk Best Practices”

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Petra Risk Solutions’ Loss Control Manager, Marco Johnson, offers a P3 Hospitality Risk Report – ‘Front Desk Best Practices’. 

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, Hotel Employees, Hotel Industry, Management And Ownership, Risk Management, Training

Hospitality Industry Legal Update: “House Passes Terrorism Insurance Bill”

“Already, companies are having trouble getting terrorism insurance, and many companies that had terrorism insurance have now lost it because thereJ_Mq7AKo were clauses written into their policies that said if TRIA is not there, they do not have the insurance coverage,” said Rep. Carolyn Maloney (D-N.Y.).

The House voted to reauthorize the Terrorism Risk Insurance Act (TRIA) on Wednesday, sending the legislation to the Senate.

The measure passed overwhelmingly by a vote of 416-5, with one lawmaker voting present.

Lawmakers failed to reauthorize the program during the last Congress, and it expired on Dec. 31, leading to uncertainty in the business community.

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Filed under Crime, Hotel Industry, Insurance, Management And Ownership, Risk Management

Hospitality Industry Technology Update: “Going mobile: The tipping point is close”

Ed Higgins, vice president of Thousand Islands Insurance Agency in Clayton, N.Y., and vice chair at the Applied Client Network, says he believes that independent agents are missing out on the opportunity that mobile apps provide…businessman-w-laptop-apps-169-crop-600x338Thousand Islands Agency was an early adopter of the MobileProducer, the mobile-app version of Applied System’s agency management platform. For Higgins, the key benefit of the app is the ability to deliver what he calls the “Starbucks experience” for customers.

Four years ago, Apple trademarked the phrase, “There’s an app for that.” With more than 1.2 million offerings in the iTunes App Store—and about 1.4 million in Google Play—it would seem that the phrase is more true than not. However, only a few general-market agent productivity apps exist, and none have more than a few reviews from users.

“It’s a relatively small number of agents who are using insurance-specific apps today,” says Chad Hersh, senior vice president at The Nolan Co., an insurance management consulting firm. “Granted, a lot of agents use general apps on their mobile devices to the extent that many people do in their daily lives and jobs, but the penetration just isn’t there for insurance apps for agents.”

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Filed under Hotel Industry, Management And Ownership, Risk Management, Technology

Hospitality Industry Management Update: “How Hotels Can Prepare for a Spike in Business”

While emergencies may force some on-the-fly thinking, citywide festivals, high-profile conventions, and major sporting events offer the luxury of time to fully prepare. Hotels make good use of those months—years, in some cases—addressing the situation from multiple angles,surge in business says Javier Rosenberg, COO, Americas, Carlson Rezidor Hotel Group. If the event involves public figures, security is enhanced to keep celebrities separate from fans. If traffic will be heavy, alternate travel routes are identified and schedules adapted to reach destinations on time.

Talk to anyone who has worked in the hotel industry for any length of time, and chances are you can uncover a story or two involving a surprise guest surge. For Robert Holmes, one of his most poignant experiences occurred less than two hours into his first morning manning the front desk at the Park Hyatt Washington D.C. in Georgetown on Sept. 11, 2001.

“I was standing at my desk, and I saw all of these people coming in,” Holmes remembers. “I turned to my staff and said, ‘We’re going to get through this.’” Prompted by a bomb threat, the hotel across the street evacuated its guests to the lobby of the Park Hyatt. With flights suspended and the local community on high alert because of the attack on the Pentagon two miles away, visitors were seeking both rooms and solace. Guests who had anticipated checking out suddenly had nowhere to go, while newcomers needed a place to stay.

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Filed under Conferences, Guest Issues, Hotel Industry, Management And Ownership, Risk Management

Hospitality Industry Management Update: “Looking Back to 2014, Ahead to 2015 at Natural Disaster Activity”

The report says that it is possible that the U.S. may still have two to three years of near-average flood-related damage before the next catastrophic loss occurs, based on projections from historic data.insurance-journal-logo-340 The 2015 flood losses could total between $5-6 billion, with flash flooding events continuing to account for a large percentage of overall annual damage

Fewer tornadoes, a mild hurricane season, lower acreage lost to wildfires, overall less flood  and other damage— all in all, 2014 was not as bad as it could have been for natural disasters in the U.S.

That’s according to global property information and analytics firm CoreLogic, which released its annual Natural Hazard Risk Summary and Analysis detailing the most significant natural disasters of 2014 and providing several projections for 2015.

The report provides a look at the year’s hurricanes, floods, hailstorms, tornadoes, wildfires, sinkholes, earthquakes, tropical cyclones and typhoon events in the U.S. as well as an international snapshot of the hazard events that caused significant damage across the globe.

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Filed under Flood Insurance, Hotel Industry, Insurance, Magazines, Management And Ownership, Risk Management