Category Archives: Risk Management

by | September 26, 2011 · 7:39 am

Hospitality Industry Fire Risks: Older California Hotel Suffers "Severe Fire Damage" Due To Lack Of "Fire Stops" In Walls

“…Damage to the 15,000 square-foot hotel and 4,000 square-foot bar was so severe that no one was allowed in the buildings due to the possibility of a collapse. An engineer was called to come out and assess the building’s structural integrity….”

Fire ripped through the Traveler’s Hotel and The Knockout Bar at the 200 Block of C Street early Saturday morning.

According to CAL FIRE spokesperson Bob Eicholtz, one reason that aided in the fire spreading was that the buildings were old and there were no fire stops in the walls.

CAL FIRE dispatched five engines, three ladder trucks and approximately 35 firefighters to battle the fire.

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by | September 25, 2011 · 8:24 pm

Hospitality Industry Marketing Risks: Hotels Are Increasingly Reacting To "Negative" Postings On Social Media Sites As Guests Go "Online" Rather Than To Management

Social media has empowered consumers, forcing companies to be more transparent and responsive. That’s a good thing. But hotels have always been responsive, if not transparent. Lodging a complaint is as simple as marching up to the front desk.

So why is it that some guests, upon encountering an issue, log on to Twitter or Facebook and bring it to the attention of their entire social graph instead of to the one person who can fix it the problem: the manager?

  • Monitor review sites and social networks closely. Even if you aren’t active on them many of your guests likely are.
  • Respond quickly to all feedback, positive or negative.
  • If comments are negative, attempt to take it offline.
  • When responding to negative reviews and commentary, always thank, apologize, explain, invite back and follow-up. No excuses, and no bribes.
  • If guests are still on property, don’t let them leave until you’ve won them over. Convert twerrorists into twadvocates, so to speak.
  • If comments are offensive, abusive or repetitive, you have the option of ignoring them. Tweets have the shelf life of tuna sushi in the desert sun; Facebook wall posts can be deleted. Sanitize, but don’t censor.
  • A social media policy and guidelines will help minimize risks and prepare you to act swiftly to minimize fallout.
  • The more helpful and engaged employees are with guests the more likely guests will be to bring issues to their attention before logging on to Facebook.

For more:  http://www.htrends.com/researcharticle58059.html

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by | September 24, 2011 · 6:18 pm

Hospitality Industry Health Risks: Hotel Pool Guests Face Outbreaks Of "Acute Gastrointestinal Illness" As "Cryptosporidium" Parasite Proves Chlorine Resistant

Outbreaks of illness related to recreational water exposure have increased substantially in recent years, largely because of the emergence of Cryptosporidium, according to a CDC report.

In the years 2007/2008, 74% of cases of acute gastrointestinal illness associated with recreational water exposure were caused by this parasite, and in all but two of the outbreaks the venue was a treated-water facility such as a chlorinated swimming pool.

The dominance of Cryptosporidium in treated recreational water facilities “is related to its chlorine tolerance, which allows it to survive in properly chlorinated recreational water for longer than ten days,” the agency stated in the Sept. 23 Morbidity and Mortality Weekly Report.

For more:  http://www.medpagetoday.com/InfectiousDisease/PublicHealth/28692

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by | September 22, 2011 · 12:16 pm

Hospitality Industry Employee Risks: Government Regulators To Enforce "Wage-And-Hour Laws" Regarding Minimum Wage And Overtime Pay; Multiple Fines To Hotel Owners Found Guilty Of "Wage Theft"

 “…Labor officials will target businesses that improperly label workers as independent contractors or as non-employees to deprive workers of minimum wage and overtime pay. Misclassifying workers also lets companies avoid paying workers compensation, unemployment insurance and federal taxes..”

Labor Secretary Hilda Solis has made increased enforcement of federal wage-and-hour laws a top priority since she took office in 2009. The department has focused on industries where so-called “wage theft” is considered a problem, including the hotel, restaurant, janitorial, health care and day care industries.

Patricia Smith, the Labor Department’s top lawyer, said sharing information between state and federal agencies could subject businesses to multiple fines.

“There’s more of an incentive to be in compliance because the cost of what we consider to be illegal activity has increased,” Smith said in an interview.

In the past, Smith said, a company might pay a single fine to a state agency for not making proper unemployment insurance payments. Under the new agreements, a state can share the information with the Labor Department, which also can seek fines and penalties for federal wage violations.

The violation also would be reported to the IRS, which can go after the company for unpaid taxes, Smith said.

States that have agreed to work with the Labor Department so far include Connecticut, Hawaii, Maryland, Massachusetts, Minnesota, Missouri, Montana, Utah and Washington. Labor officials from New York and Illinois plan to sign up in the near future.

For more:  http://online.wsj.com/article/AP1a153b15fbd44922854b2aff6f272223.html

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by | September 20, 2011 · 5:49 am

Hospitality Industry Theft Risks: Washington Hotel Housekeeper Arrested For "Stealing iPad" From Guest Room; Global Positioning System (GPS) On Device Tracks Down Suspect

“…The guest noticed his iPad missing from his room Sept. 9, and there was no forced entry… the man used a GPS that had been installed on the device as an anti-theft measure to trace the iPad to Zavala’s apartment complex…”

Olympia detectives arrested a housekeeper at the Red Lion Hotel Olympia on Friday after a hotel guest tracked a global positioning system on his missing iPad to the housekeeper’s apartment, police said

The man contacted police, and detectives went to Zavila’s apartment. She admitted to taking the iPad.

Detectives executed a search warrant at the apartment and found the iPad. They also found a laptop, jewelry and other items that might have been stolen.

Hotel General Manager Jay Johnson said Zavala has been suspended pending the outcome of her case. He added that hotel officials believe the theft is an isolated incident.

Read more: http://www.theolympian.com/2011/09/19/1806512/hotel-housekeeper-accused-of-stealing.html#ixzz1YV3toCsb

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by | September 18, 2011 · 6:40 pm

Hospitality Industry Security Risks: Florida Hotel Evacuated By Police Bomb Squad After "Suspicious" Suitcases Are Found In Lobby

“…The scare shut down nearby roads and displaced about 300 guests. They were shifted to the nearby Renaissance Hotel. Deputies roped the area off and surrounded the hotel…”

An International Drive hotel was evacuated Sunday night after two suspicious packages were found in the lobby, Orange County deputies said.

Authorities said the bomb squad was called to the Hilton Garden Inn on Westwood Boulevard. The suspicious packages were two suitcases that were left behind by guests in the lobby at about 6:00 p.m.

After nearly four hours, investigators deemed the two suitcases safe. But officials haven’t said what they found inside.

For more:  http://www.wftv.com/news/29225407/detail.html

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by | September 16, 2011 · 6:32 pm

Hospitality Industry Lawsuit Risks: "Hotel Negligence" Lawsuits Are Proliferating To Include Hotel Physicians Who Provide Guests' Medical Care

“…Hotel negligence is so prevalent in a vacation destination like Florida, with so many people harmed, that an increasing amount of our practice focuses on so-called resort litigation…and the types of negligence are expanding…to cases involving hotel physicians — doctors with whom the hotels have arrangements, that are called in to care for hotel guests…”

 The problem, says Reboso, is that the hotels typically do not check the credentials of the doctors and house call services they provide to guests. “You don’t know if you’re getting the best doctor in Florida or the worst,” says the injury lawyer. “And neither does the hotel. It’s a recipe for disaster. The clients we’re representing in these kind of resort litigation lawsuits have been harmed by negligent medical care.”

Nor do the hotels give guests the real picture on prices, adds Reboso: “In one case we are handling, the hotel said the service would cost $600, while the credit card charge — which comes well after you’ve left the hotel — was $6,300. We have found plenty of other cases in Florida when a $500 charge suddenly turns into a $4,000 or $5,000 bill. Obviously, the hotel industry and the medical profession need to educate themselves about what is going on and do something about it.”

 

For more:  http://www.prweb.com/releases/2011/9/prweb8793265.htm

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by | September 15, 2011 · 10:17 am

Hospitality Industry Cybercrime Risks: Hotel Management Should Have Policies "Disclosing Risks Of Hotel Computer And Wireless Internet Usage"

“…According to a report from antivirus software manufacturer Norton, global cybercrime has claimed 431 million adult victims in the past year, costing countries $114 billion in direct financial losses. That figure jumps to $388 billion when you factor in the value that victims place on the time they spent recouping the losses…”

Last year, in the U.S. specifically, more than 74 million people were victims of some form of cybercrime, leading to $32 billion in direct financial losses.

  • Recognize that your smartphone is really a pocket-size computer and is prone to the same types of attacks directed at your laptop and desktop. Take steps to protect it, such as keeping your operating system current and creating a strong password.
  • Keep your personal information to yourself. For instance, don’t put your entire birth date, including the year, on Facebook. Think about the security questions normally posed by your bank and other secure locations: “first school you attended,” “name of favorite pet” and the like. Are your answers on display online?
  • Know the pitfalls of public Wi-Fi. CreditCards.com says, “Avoid public wireless Internet connections unless you have beefed-up security protection.”
  • Beware of public computers, too. For instance, Kiplinger says, “Don’t access your accounts or personal information on public hotel computers, which could have software that logs keystrokes and records your passwords and account numbers.”
  • Use credit cards, rather than debit cards, when making purchases online. In case of fraud, you’ll get much better protection from liability with a credit card.

For more:  http://money.msn.com/identity-theft/article.aspx?post=6730f6ce-5203-4b59-bd46-f65a7a3545c2

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by | September 14, 2011 · 10:47 am

Hospitality Industry Guest Room Risks: "Hotel Minibars" Are "Loss-Leaders" At Many Properties Where Theft And Spoilage Cause Inventory Issues

“… actually [minibars] are loss-leaders…(some hotels have) been phasing out stocked minibars…Theft and billing problems can eat into minibar income. Hilton loses 5% to 20% of minibar revenue to “quote-unquote breakage…”

To cut costs and keep better track of sales, more hoteliers are installing automated minibars equipped with sensors that know when an item has been removed, immediately charging a guest’s bill.

Hotels and minibar manufacturers say these can cut labor costs since employees only have to check the roughly 25%-30% of rooms that use the minibar on a given day. Software can track how long items have been sitting in the minibar, cutting down on the problem of expired snacks.

But automated minibars cause problems of their own. If you take out an item and put it back, you might be charged, though most hotels give a grace period of about 40 seconds. And forget replacing a minibar’s high-priced sodas with your own snacks.

Sensors can also be overly sensitive, causing problems even for travel professionals.

For more:  http://online.wsj.com/article/SB10001424053111904537404576554441363020606.html

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by | September 13, 2011 · 10:49 am

Hospitality Industry Information Security Risks: Senate Introduces "Personal Data Protection And Breach Accountability Act Of 2011" Forcing Companies To Secure Personal Data

“…Introduced by Sen. Richard Blumenthal (D-Conn.), the Personal Data Protection and Breach Accountability Act of 2011 would force companies that hold online information for more than 10,000 people to follow strict guidelines to ensure the data is stored correctly…”

The U.S. Senate will consider a bill aimed at protecting citizens’ personal information from online data theft, and penalizing companies that don’t adequately store and safeguard their customers’ personal information.

The bill would impose fines on companies who don’t follow the guidelines and leave customer data open to compromise, and open the door for customers to sue companies that don’t adequately protect their data.

Blumenthal’s bill would put the U.S. government in line with states such as Massachusetts, which has legislation that fines companies that improperly protect residents’ digital data.

For more:  http://www.msnbc.msn.com/id/44491737/

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