Category Archives: Management And Ownership

by | November 10, 2010 · 8:34 pm

Hospitality Industry Business Risk Management: Hotel Owners Must Have “Business Interruption Insurance” In Place To Protect Property From Disasters And Unforeseen Events

A regular commercial property insurance policy covers only the physical damage to your business. What about the profits which could have been earned during this period? How to pay rent, employees’ salaries and other important payments while your business is being rebuilt? This would definitely result in substantial financial loss.

Business interruption insurance (also known as business income coverage) helps businesses in situations like this. Many businesses without the business income coverage, shut down their business operations after their business is completely shuttered due to some unforeseen event. It covers the loss of income and helps a business return to the financial position as it was in prior to the disaster.

Hence, a business in hospitality industry should understand the importance of business interruption insurance and should go for this insurance. Critical aspects of business interruption insurance Business owners from hospitality industry should be aware of some of the critical aspects of business interruption insurance. Here, we will take a look at some critical aspects of hotel business interruption coverage and understand why it is very useful for businesses in hospitality sector.

 Business interruption period:  The business interruption period is the length of period for which the benefits are payable under an insurance policy. This period is the most critical part of quantifying the business interruption loss. It covers a business from loss of income for a specified period till the damaged business property is repaired or reopened. Some hotels being aware of the losses that may persist even after repairs are done; opt for “extended period of indemnity”. As it may take some time for the hotel to regain bookings and rebuild market share.

Loss of rooms revenues:   The business in the hospitality or the lodging industry may suffer financial performance as two of its main functions, occupancy percentage and average daily rate (ADR) may get affected. In simpler terms, a hotel damaged by a hurricane or fire or stuck in a deep local recession will not be able to generate any revenues because of closed rooms, especially in hotels and lodges. Business interruption insurance compensates you for lost income due to loss of rooms. It covers the profits you would have earned, based on your financial records.

Other lost revenues: Revenues from food and beverage, conferences, golf, spa, etc., can constitute a significant portion of a hotel’s income. When a business is interrupted, not only revenues through rooms are affected, some or all of these sources of income are typically interrupted. The business interruption insurance covers all the profits that would have been earned.

Ordinary payroll: Even if the business activities are temporarily stalled, operating expenses, and other costs such as rent, electricity bill, taxes, interest payable on bank loans, payroll costs etc., cannot be ignored. The business still needs to retain some employees such as accountants, front office executives etc. The business owner needs to pay salaries to them. In this kind of situations business interruption insurance is very helpful as ordinary payroll coverage is a common endorsement in many policies.

Extra expenses:  Business interruption policies generally allow an insured hotel to claim extra expenses incurred during the period of indemnity. It reimburses for reasonable expenses that allow the business to continue operation while the property is being rebuilt. Some policies also cover the extra costs required for moving the business to a different (temporary) location.

Business interruption insurance is one of the most important insurance policies that help in minimizing the adverse consequences of some unwanted events for the businesses in the hospitality industry. A well-thought out risk strategy by hotel owners or operators can make a significant difference at the most crucial times.

For more:   http://www.infobarrel.com/Know_About_Business_Interruption_Insurance_in_Hospitality_Industry

Comments Off on Hospitality Industry Business Risk Management: Hotel Owners Must Have “Business Interruption Insurance” In Place To Protect Property From Disasters And Unforeseen Events

Filed under Business Interruption Insurance, Insurance, Liability, Maintenance, Management And Ownership, Risk Management

Tagged as , , ,

by | November 9, 2010 · 6:49 pm

Hotel Industry Employee Injury Risk Management: Housekeepers File “Multicity Injury Complaint” That Demands Hotel Management Use “Fitted Sheets”, “Long-Handled Mops And Dusters” And Lower Room Quotas To Reduce Injuries

The complaints recommend the hotels:

  • use fitted sheets to reduce the number of times that women must lift 100-plus pound mattresses;
  • long-handled mops and dusters, so workers do not have to get down on their hands and knees to clean the floors or climb bathtubs to reach high surfaces;
  • and what the union considers to be “reasonable” room quotas.

Housekeepers at the Hyatt Regency Waikiki Beach Resort and Spa joined with their mainland counterparts to file the first multicity injury complaint against the hotel operator with the U.S. Department of Labor Occupational Safety and Health Administration.

In addition to Honolulu, complaints were filed by workers at a dozen Hyatt properties in San Antonio; Chicago; San Francisco; Santa Clara, Calif.; Los Angeles; Long Beach, Calif.; and Indianapolis. Those properties employ more than 3,500 workers, according to Unite Here Local 5, the hotel workers union.

Some Hyatt properties require room attendants to clean as many as 30 rooms a day, nearly double the industry standard, according to the union. Housekeeping duties include heavy lifting of beds, linens and other work that can strain the body.

For more:  http://www.staradvertiser.com/business/businessbriefs/20101110_Business_Briefs.html

Comments Off on Hotel Industry Employee Injury Risk Management: Housekeepers File “Multicity Injury Complaint” That Demands Hotel Management Use “Fitted Sheets”, “Long-Handled Mops And Dusters” And Lower Room Quotas To Reduce Injuries

Filed under Health, Injuries, Labor Issues, Liability, Maintenance, Management And Ownership, Risk Management, Training

Tagged as , , ,

by | November 8, 2010 · 5:56 am

Hotel Industry Guest Security Management: Hotel In Sweden Launches First Pilot Of Mobile Phone-Enabled “Keyless Entry And Check-In/Check-Out” Technology Using “Near Field Communication (NFC)” (Video)

[youtube=http://www.youtube.com/watch?v=YqeCNEvs4Xg&feature=player_embedded]

 NFC, Near Field Communication, is a short-range wireless communication technology standard that enables the exchange of data between devices over up to a 10 cm distance. Applications include contactless transactions such as payment and transit ticketing, keys, data transfers including electronic business cards, and access to online digital content.

A world’s first pilot is starting at the Clarion Hotel Stockholm in Sweden. ASSA ABLOY, Choice Hotels Scandinavia, TeliaSonera, VingCard Elsafe and Venyon, a fully owned subsidiary of Giesecke & Devrient, have joined forces to replace hotel room keys with NFC-enabled mobile phones. The technology makes it possible for hotel guests to check-in and out using their mobile phones. 

The goal of the pilot is to get feedback from guests and employees using the NFC phones for a variety of services. Guests will be able to check in to the hotel and receive the hotel room key directly onto their mobile phones before arriving at the hotel. Guests can also access other services via their mobile, and on departure, the check-out process using the phone promises to be easy and stress-free.

The technology also increases security. If a mobile phone is lost, the access credentials can be revoked remotely and then reissued. This makes it impossible for unauthorized people to use a lost or stolen NFC mobile phone.

For more:  http://www.hoteltechresource.com/article49844.html

4 Comments

Filed under Crime, Guest Issues, Liability, Management And Ownership, Risk Management, Theft

Tagged as , , ,

by | November 7, 2010 · 10:45 am

Hotel Industry Health And Safety Issues: Bedbug Infestations Eradication Efforts Are Complicated And Expensive (Video)

[youtube=http://www.youtube.com/watch?v=zA8z4IVEG-0]

They are not even five millimeters long and cannot fly or jump. Yet bedbugs strike fear in homeowners and business owners. Well, not all business owners. Some see money in these little bloodsuckers.

Missy Henriksen speaks for the National Pest Management Association. She says they are now seeing bedbugs in unusual places: schools and hospitals, store and movie theaters. So, as the numbers have grown, those bed bugs are spreading out and traveling along with people. New York and other cities have outbreaks. But the United States is not the only country affected. Jeff White is an insect expert who hosts Bed Bug TV on the website BedBug Central. He says the lack of public awareness has caused this rapid expansion of bedbug infestations. Mr. White says bedbugs nearly disappeared from the United States for fifty or sixty years. Now researchers are looking for faster, safer ways to control them without the kinds of poisons used in the past. The name is misleading. Bedbugs do not just live in beds. Mr. White says they can survive for a year without food — that is, blood. In September, an industry event called BedBug University’s North American Summit 2010 took place near Chicago, Illinois. More than three hundred sixty people attended the two-day meeting.The industry says bedbugs are the most difficult pest to control. Treatments can cost from several hundred dollars to thousands of dollars in a hotel or apartment building.

Missy Henriksen says Americans spent almost two hundred sixty million dollars on bedbug treatments last year. That was only five percent of total spending on pest control but that number does not include other costs. She says the total economic effect is much greater. Businesses that have bedbugs often must close to solve the problem. Bedbugs have not been shown to spread disease. But they can leave itchy bite marks and cause allergic reactions in some people. Lately, however, another bug has caught America’s attention. The National Pest Management Association is now getting the most questions about stink bugs. Outbreaks have invaded homes and offices in many states. Stink bugs are harmless except to farms and gardens. And they smell bad only if you smash them.

Comments Off on Hotel Industry Health And Safety Issues: Bedbug Infestations Eradication Efforts Are Complicated And Expensive (Video)

Filed under Guest Issues, Health, Insurance, Liability, Management And Ownership, Risk Management

Tagged as , ,

by | November 6, 2010 · 8:46 am

Hospitality Industry Crime: Hotel Lobby ATM Machines Can Be “Retrofitted” By Criminals With Card Readers And Cameras To Steal Guest ATM Card Information

“…criminals retrofit ATMs with a card reader that stores the magnetic information of customer cards. They then put that data onto a blank card to make transactions — or cash withdrawals. For withdrawals, they also install a small camera to capture the customer typing in the PIN. Thus, with a small investment of time and equipment, they have everything they need to grab cash from the bank accounts of unsuspecting ATM users…”

According to the BBB alert, “ATM skimmers are close to reaping $1 billion annually from unsuspecting consumers. Javelin Strategy & Research estimates that one in five people have become victims.”

It’s hardly an urban myth. In fact, I think I am revisiting my previous paranoia and considering becoming yet more cautious. Installing a skimming device and a camera is a quick operation, so even the ATM I prefer in the well-lit parking lot of my own bank could fall prey. According to the BBB, in addition to using ATMs that are clean, well lit, and in good repair, I should give it a good visual examination each time I use it. If part of the reader apparatus seems loose, move on — or pull on it and see what happens.

In May, a Florida man did just that. His bank’s ATM looked wrong. He tugged on a part that looked loose — and it came off in his hand. It was a skimming device. His “paranoia” allowed police to shut down that particular operation a mere 10 minutes after it had been set up, thus saving any number of people from being scammed.

For more:  http://www.pcworld.com/article/209959/atm_skimming_cash_machine_paranoia_justified.html

Comments Off on Hospitality Industry Crime: Hotel Lobby ATM Machines Can Be “Retrofitted” By Criminals With Card Readers And Cameras To Steal Guest ATM Card Information

Filed under Crime, Liability, Management And Ownership, Risk Management, Theft

Tagged as , , ,

by | November 3, 2010 · 7:56 am

Hotel Industry Employee Wage Issues: Employee Unions Plan To Use Threat Of Strikes To Put Pressure On Hotel Management To Negotiate Wage Contracts Acceptable To Both Sides As Industry Recovers

The scene looks much the same among union hotel workers: bold employers, drawn-out bargaining, and unions launching intermittent short strikes to keep up pressure. Hilton is now UNITE HERE’s target because the union judges that company most likely to move—a shift in strategy after months of rolling strikes and pickets against the Hyatt chain.

The union hopes to establish a pattern at the bargaining table with Hilton that other hotels will follow.

Chicago hotel workers authorized strikes at four Hilton-owned or -operated properties. They struck the Hilton Chicago for three days in October, coordinating with Hilton workers in Honolulu and San Francisco. Those strikes ended October 19, but more may be on the way.

Workers in Toronto took advantage of the Toronto International Film Festival in September to gain visibility for their struggle. Rolling one-day strikes at three hotels, including festival headquarters, caused actors Martin Sheen and Emilio Estevez to join the boisterous picket line. The blare of vuvuzelas added to picket-line noise.

Workers rolled out a red carpet and offered passersby the opportunity to have their photo taken with a hotel worker. Inside, workers spotted the housekeeping manager doing bell work.

Six additional one-day strikes have cascaded through Toronto hotels since the film festival. And 500 workers walked out of the Delta Chelsea, a large downtown conference hotel, on October 28. Delta Chelsea workers say they’ll stay out for two weeks.

Cristal Cruz-Haicken of UNITE HERE Local 75 said the two-week strike was necessary because “they weren’t even taking us seriously” at the bargaining table.

Unstable work schedules and job security are a serious problem. Feliz Serrano, a server, said he has worked there 30 years and still usually only gets 30 hours of work a week, but only if he works six days in a row.

Room attendant Jian Ying Liu said the hotel has tried to get rid of her three times because of injuries she received in her 18 years of work there.

Several conferences immediately moved because of the strike.

LOCKING IN THE RECESSION

In the U.S., Hilton workers have been working without a new contract since August 2009. They charge their employer with trying to lock the recession into their wages and workloads even as the hotel industry recovers profitability.

Blackstone, the private equity group that controls Hilton, upped third-quarter profits by 23 percent, to $340 million. This April, the New York Federal Reserve wrote off $180 million of Blackstone’s debt, allegedly to create jobs.

But the hotel chain is trying to squeeze more work from the existing staff. Hilton is proposing that workers who currently clean 14 rooms a day clean 20, with the result that some workers will be laid off.

UNITE HERE members call Hilton’s push to increase their workload the “dirty rooms” program, pointing out that Hilton is reassuring workers they won’t have to meet the same high standards of cleanliness when they’re required to clean 40 percent more rooms.

The average Local 2 member in San Francisco makes $30,000 a year, and if Hilton gets its way workers will soon be paying $173 a month for family health care coverage.

According to Local 2 staffer Riddhi Mehta-Neugebauer in San Francisco, workers have foregone raises over the years, preferring to maintain affordable health coverage. The new $173 per month amounts to a huge takeaway.

Hilton is resisting the union’s proposal that the company put aside an extra 12 cents per hour for pensions, which, UNITE HERE calculates, would mean the difference between a $900 and a $1,200 monthly pension.

Meanwhile, management’s pay is up. According to a Wall Street Journal survey, Blackstone’s executive team got a 12 percent pay increase this year.

For more:  http://labornotes.org/2010/11/unions-reach-short-strikes-stop-concessions

8 Comments

Filed under Labor Issues, Management And Ownership, Training

Tagged as , , , ,

by | November 2, 2010 · 8:46 am

Hospitality Industry Employee Health Risks: Swine Flu Outbreaks Could Cripple Small To Medium-Sized Companies If “Half Of Their Workforces Were Out Sick For Two Weeks”

Only one-third reported that they could sustain their businesses without “severe operational problems” if the swine flu kept half their workforces out sick for two weeks, according to the survey.

Swine flu is a type of influenza caused by a virus which can cause serious health complications or even death in a small proportion of the population. Officially called Influenza A H1N1, the symptoms are similar to ordinary flu (e.g. fever, headache, sneezing) but can be more severe.

The federal Centers for Disease Control and Prevention in Atlanta estimates that the H1N1 virus has infected more than 22 million people in the U.S. since April, and more than 4,000 people nationwide have died of related complications. The proportion of deaths attributed to influenza already has exceeded what is normally expected at this time of year, with the young hit the hardest, the CDC says.

    At the same time, a survey published in September by the Harvard School of Public Health found that the pandemic and resulting absences could have devastating effects on U.S. businesses. Only one-third reported that they could sustain their businesses without “severe operational problems” if the swine flu kept half their workforces out sick for two weeks, according to the survey.

    Jennifer Benz, who runs Benz Communications, a San Francisco-based employee benefits communication firm, says many of her clients have begun health education campaigns but have stopped short of analyzing all the issues that could arise from a pandemic.

    “It’s very easy to post communications throughout your company, such as washing your hands when you sneeze, but to really look at changing policies is a much different thing,” she says. “It’s a tough business environment right now.”

    Many companies may do more if they see absenteeism soar, she says, but by then, it may be too late. “I think a lot of companies have a plan in their back pocket. If their work site gets hit really hard, then they’ll look at ‘How do we respond?’ ”

    The flu pandemic highlights the importance of providing robust health benefits, such as more than one or two sick days a year, she says. But ad hoc solutions, such as allowing employees to work from home, will fail if a company hasn’t thought them through by, for instance, providing enough access to laptops and ensuring that computer networks can support large numbers of workers dialing in.

    Furthermore, just telling employees to stay home doesn’t help if the company has a weak sick-leave policy or doesn’t provide paid sick time for hourly or part-time workers. “For low-wage workers, missing some days off can mean the difference in paying your rent that month,” Benz says.

    In many cases, businesses are opting against more aggressive efforts because of cost and privacy concerns, says Russell Robbins, a principal and senior clinical consultant in the Connecticut office of HR consulting firm Mercer. Unfortunately, it’s easy to dismiss warnings over H1N1 as paranoid or an overreaction, but the truth is that the flu is likely to spread, Robbins says.

    “I just keep saying that the only way we’re going to weather through this is if we’re prepared for a crisis,” he says. “In other words, make plans now.”

For more:  http://www.workforce.com/section/benefits-compensation/feature/ounce-prevention-or-pound-cure/index.html

Comments Off on Hospitality Industry Employee Health Risks: Swine Flu Outbreaks Could Cripple Small To Medium-Sized Companies If “Half Of Their Workforces Were Out Sick For Two Weeks”

Filed under Health, Insurance, Management And Ownership

Tagged as , ,

by | October 30, 2010 · 5:26 am

Hospitality Industry Fire Risk Management: “Security Alert! Check The Security Of Your Hotel’s Knox Boxes Frequently” By Todd Seiders, CLSD, Petra Risk Solutions

Risk Management

by Todd Seiders, CLSD

Check your Knox Boxes! A Knox Box, known officially as the KNOX-BOX Rapid Entry System, is a small, wall-mounted safe-like box that holds building keys for firefighters and EMTs to retrieve in emergencies. In many jurisdictions, the local Fire Department requires that a Knox Box be located outside of your hotel (check with your local Fire Department for requirements; some jurisdictions may not require hotels to have one), for their use only, in the event of an emergency. The Knox Box has a complete set of the hotel’s master keys locked inside this box.

Knox Boxes simplify key control for local fire departments. Local fire companies can hold master keys to all such boxes in their response area, so that they can quickly enter a building without having to force entry or find individual keys held in deposit at the fire station. Sometimes Knox Boxes are linked via radio to the dispatch station, where the dispatcher can release the keys with telecommunication tone signaling over analog phone lines.

Knox Boxes have advantages and disadvantages for both business owners and emergency responders. The main advantage for their use is that they cut fire losses for building owners since firefighters can more quickly enter buildings without breaking doors or windows. The disadvantage of the system is that it provides a single point of failure for security. If the key to a district’s Knox Boxes is stolen or copied, a thief can enter any building that has a Knox Box. Likewise, if the locking mechanism or structural integrity of the box is compromised, a thief can gain access to the keys and hence access to the entire building. For this reason some building owners wire Knox Boxes into their burglar alarm systems so that opening the box trips the alarm, thus negating its use in facilitating clandestine entry.

 
 
 
 

Todd Seiders, CLSD, is director of risk management for Petra Risk Solutions, which provides a full-range of risk management and insurance services for hospitality owners and operators. Their website is: www.petrarisksolutions.com. Todd can be reached at 800-466-8951 or via e-mail at: todds@petrarisksolutions.com.)

 

Knox Boxes are an actual miniature safe designed to withstand tampering and are built in a variety of sizes ranging from a box designed for two keys to one designed to hold hazardous material information and multiple keys. Prices start at approximately $250.00. Most Knox Boxes are mounted onto a wood or steel mounting with the screws or bolts covered.

Yet, this does not mean that Knox Boxes are indestructible or cannot be removed from their mounting with force. We have recently seen many of these Knox Boxes forcefully removed from their wall mountings and stolen from the property. In several cases the thieves then returned to the hotel with the master keys and stole items.

In one theft at a hotel the thieves specifically used the master keys to access the storage room for the hotel night audit packets and guest files. The thieves stole hundreds of night audit packets containing the names, addresses and credit card numbers of previous guests. Obviously, hotels can be held liable for breach of guests’ personal information or loss of their credit card data.

So, what should hoteliers do? Secure your night audit packets/files in a secure room that has a hard metal key, rather than a magnetic key card lock. There should only be one or two hotel employees that have access to the night audit storage room, and storage room keys. Secure these files separately, and control all access to them. DO NOT include a key to this storage room in your Knox Box, or on your “master key ring”, or even leave this key unattended in a key box. The night audit file storage room key should be kept separate from all other keys.

As for the hotel’s Knox Box, local ordinances may require that your property have a Knox Box in the event of an emergency. If so, follow these suggestions:

  • Check that your Knox Box is solidly secured to its location, using numerous heavy duty screws or bolts to make it extremely hard to remove.

 

  • Relocate your Knox Box to a well lit area, and in view of security cameras, if your property has them.

 

  • Add a visual inspection of the Knox Box to your property inspection form and security tours so it will be inspected on a regular basis. This will let you know in a timely manner if someone has tried to remove it, or has in fact actually removed or damaged. Immediately re-key the entire hotel if the Knox Box is stolen or the keys inside come up missing. 

 

Pictured above: Here’s what some of the various Knox Boxes look like.

(Todd Seiders, CLSD, is director of risk management for Petra Risk Solutions, which provides a full-range of risk management and insurance services for hospitality owners and operators. Their website is: www.petrarisksolutions.com. Todd can be reached at 800-466-8951 or via e-mail at: todds@petrarisksolutions.com.)  

Comments Off on Hospitality Industry Fire Risk Management: “Security Alert! Check The Security Of Your Hotel’s Knox Boxes Frequently” By Todd Seiders, CLSD, Petra Risk Solutions

Filed under Crime, Insurance, Liability, Management And Ownership, Risk Management, Theft

Tagged as , , ,

by | October 29, 2010 · 5:45 am

Hotel Industry Security Risk Management: “Fingerprint Entry Systems” Are Starting To Become More Common As A “Reliable” Guest Security Option

If you want to get into your room at New York’s SoHo Loft, you’re going to have to lift a finger. The seven-room hotel has a fingerprint entry system. Guests touch the door pad then enter a code for extra security. Kimpton’s 190-room Nine Zero Hotel in Boston was the first hotel to install a biometric iris scanner back in 2004, but only guests of the 1,065-square-foot Cloud Nine penthouse suite have to bat their eyelashes.

Those plastic key cards that once seemed so innovative will soon go the way of the actual key. The new thing is contact less Smartcards and RFID (Radio Frequency Identification) cards that need just be waved to allow room access.

Much like the cruise world’s one card system, these cards may soon make hotel stays easier by allowing guests to pay for services, as well as to check-in and check-out, through a single device. Travelers may even be able to save preferences on the cards, from pillow type to floor choice. RFID cards are already in use at New York’s Plaza Hotel, and Starwood Hotels are considering introducing them into their hip Aloft and Element properties.

But travelers worried they will constantly have to traipse back to reception every time they lose their card need not despair. Security systems in some hotels do away with cards altogether.

 “In addition to Radio Frequency Identification, there are also systems that use a smartphone, such as an iPhone,” says Frank Wolfe, CEO of Hospitality Financial and Technology Professionals. “When a guest checks into a hotel and provides their phone number, they get an encrypted sound code via text message.” You can then play back the code to unlock your room door.

Yet more card-free security systems are on the way. They may still be minor blips on the greater hotel horizon, but biometric systems that seem right out of Mission Impossible have been introduced in the U.S. If you want to get into your room at New York’s SoHo Loft, you’re going to have to lift a finger. The seven-room hotel has a fingerprint entry system. Guests touch the door pad then enter a code for extra security. Kimpton’s 190-room Nine Zero Hotel in Boston was the first hotel to install a biometric iris scanner back in 2004, but only guests of the 1,065-square-foot Cloud Nine penthouse suite have to bat their eyelashes. The uses for biometrics don’t have to stop at the guestroom door, either. The Nine Zero also uses the technology to make the property safer all round, as it has installed the LG IrisAccess 3000 at the employee and delivery entries to the hotel, as well, meaning that non-staff members and intruders can’t access the property.

For more:  http://news.travel.aol.com/2010/10/29/the-future-of-hotel-security/

8 Comments

Filed under Guest Issues, Liability, Management And Ownership, Risk Management

Tagged as , , ,

by | October 28, 2010 · 3:13 pm

Hotel Industry Guest Relations: Hotels Will Increasingly Opt For “Check-In Kiosks” To Provide “Cozy, One-On-One Welcomes” To Improve Guest Satisfaction

 The key is removing the barrier between the guest and the hotel — be it for better service, streamlining, experience or profit. The sitting-behind-a-desk days are not what travelers want,” Sinclair said. “However the hotel chain chooses to roll it out — kiosks, check-in pedestals, tablets or iPads — you walk to the lobby and whoever you speak to can handle your entire needs …

“Traditional front desks, however, may be destined for a scrap heap teeming with bygone lobby fixtures like key boxes, desk bells and hat racks. Some mid-market chains already are dumping imposing check-in counters for cozy, one-on-one welcomes or for virtual check-ins through kiosks or mobile devices.

When Sherry Richert Bulel entered the Andaz West Hollywood in February, she was greeted by a “host” who offered her wine, a comfy chair and room selection via his laptop. “There was no looming desk between us to indicate that he was the hotel staff and I was the guest,” said Richert Bulel, author and founder of simplycelebrate.net, which creates tribute books for special occasions. “I immediately relaxed.”

In addition to Andaz, Courtyard by Marriott has renovated 201 of its 800 U.S. lobbies, swapping its standard front desks for smaller “welcome pedestals” that allow clerks to step out to meet patrons, then step back to check them in. Courtyard will finish the makeover by 2013.

Meanwhile, Starwood has used one of its urban-style Aloft hotels to test a tech-driven welcome service. Several thousand customers who already carried Starwood Preferred Guest cards were texted their room numbers before arriving at the Aloft Lexington in Massachusetts, allowing them to bypass the front desk and head to their floor. 

FITs, or Free Independent Travelers. In general, FITs have above-average income, prefer to roam alone, in small groups or as couples, avoid tourist tracks, research their explorations via their mobile devices, and spend freely. They are, Sinclair said, “now the dominant market traveler being sought after by most major brands.” FITs, experts believe, prefer hotels that offer texted check-in codes or lobby kiosks that spit out room keys. So how long until old-school front desks vanish from most or maybe all mid-market hotels?

“Within the next 36 months,” forecasts James Sinclair, principal of OnSite Consulting, a national restaurant and hospitality consulting company. His clients include W Hotels and the MGM Grand in Las Vegas. Related: Tech-savvy travelers embrace self-service model “ You sit on a couch and wait your turn rather than (stand) behind Bob who is arguing that he didn’t have the salt-and-honey peanuts from the minibar.” Viewed from the bottom line, chopping the front desk also “makes sense for the hotel in terms of profit maximization,” Sinclair said. “As the hotel market has become more competitive with the various online practices and the need to refocus on margins, there are only a few areas that can be looked at.” Number one: payroll. No front desks, or smaller versions, could allow hotels to operate with fewer employees. What’s next? No beds? Then again, that’s the chief reason why some mega-mile travelers — like comedian Dan Nainan — hate the downsizing of check-in counters. Spending huge chunks of their lives on the road, they befriend hotel employees and feel somewhat protective of them. “If I ever see a hotel without a front desk, I can guarantee you that that is a hotel I would never, ever, ever patronize,” said Nainan, who flew 200,000 miles last year. “I will turn right around on my heel and march out of that place so fast I will actually do a wheelie. What brilliant cost-cutting move will they think of next? How about hotel rooms with no beds? Imagine the savings!” But hotel chains say de-emphasizing, shrinking or removing the front desk simply gives their guests more options. Further, the tactic is part of a larger shift, they say, to entice patrons to spend more time — working or relaxing — in attractive, compelling lobbies. Courtyard’s fresh, first-floor face, which costs the chain about $750,000 per makeover, includes free WiFi, “media pods” where patrons can plug in laptops and watch TVs, plus a 57-inch, LCD touch screen — the “GoBoard” — that provides news, weather, and directions to local attractions. An eat-in bistro — “Starbucks meets Panera,” they say — offers breakfast, then later a casual dinner and cocktails. About three years ago, Courtyard’s lobby designers used Styrofoam cutouts to simulate changes — including the “welcome pedestals.”

Comments Off on Hotel Industry Guest Relations: Hotels Will Increasingly Opt For “Check-In Kiosks” To Provide “Cozy, One-On-One Welcomes” To Improve Guest Satisfaction

Filed under Guest Issues, Labor Issues, Management And Ownership, Training

Tagged as , , , ,