Tag Archives: Lawsuits

by | November 25, 2015 · 7:42 pm

California Businesses 40% More Likely to be Sued by Employees

California

It’s time for California insurance agents to revisit their commercial clients’ liability portfolio.

According to a report released this week from Hiscox, businesses in the Golden State are 40% more likely than their peers to be sued by an employee. In fact, just four states – New Mexico, Nevada, Alabama and Washington, DC – outstrip California when it comes to employee lawsuits.

The reasons why are complicated, but report authors suggest that state laws going beyond federal guidelines are the most likely cause of discrepancies in the rate of employee lawsuits between states. When it comes to California, that means strict regulation around anti-discrimination and fair employment practices that subject businesses to higher scrutiny from workers.

Discrimination, as defined by these laws, comes in many forms including age (over age 40), disability, national origin, race, color, religion, sex (including pregnancy) and genetic information (diseases or disorders in family medical history).

More clear is the effect such lawsuits have on businesses. According to Hiscox, the average legal dispute regarding an employment matter lasts 275 days and in 19% of cases, defendants are subject to a defense and settlement payment. When that happens, businesses can expect to bill their insurers an average $125,000 in claims while taking $35,000 in deductibles on themselves.

The report comes just months after a similar survey from Littler Mendelson, in which 57% of human resource and C-suit professionals said they expect workplace discrimination claims to become one of the top business risks in the next years.

The statistics are a serious argument in favor of ample employment practices liability insurance (EPLI) for California businesses. Without proper coverage, clients could end up on the hook for an extra $90,000, going by national averages. Inadequate limits could also cause a sting, though arguably less of one.

For more: http://bit.ly/1OshHAO

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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 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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by | September 29, 2015 · 8:29 pm

Hospitality Industry Technology Update: “DIY Not the Answer with Hotel Technology”

For the first time, technology has become a real point of differentiation for hotel companies. As owners and asset managers become more involved and focus onDIY Hotel Tech technology and distribution, the pressure will grow for brand companies. It’s great the entire industry recognizes the problem, but the question becomes, how does it get solved? Or worse, what happens if it doesn’t?

After attending the summer season of hotel industry events, I was surprised to see a new found recognition from hotel brand companies that technology has become an urgent priority. It is refreshing to hear executives admitting that they have fallen behind the curve and are desperate for new solutions.

It wasn’t that long ago that technology and distribution were barely mentioned at these events, but now they are often the focus of general sessions at even the biggest investment conferences like NYU. And now we even have newer events like the Revenue Strategy Summit and the Hotel Data Conference where distribution is a main topic on the agenda.

It’s remarkable to see such a transformation, but that’s where my excitement stops. In the next breath, many of the same hotel brand leaders talk about a renewed commitment to building better technology. They want to compete with Expedia, Priceline, and Google by creating their own in-house platforms.

For more: http://bit.ly/1P4k8Lw

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by | September 25, 2015 · 5:03 pm

Hospitality Industry Technology Update: “The Present and Future of In-Room Tech”

“Hotels should focus on making room technology easy to understand, accessible and relevant. Do not focus the efforts only on creating ‘fun’technology such as mood lighting and such.Roundtable-Feature It’s important to pay attention to the devices used by guests and add tech features, which can assist in an improved hotel experience.”

From cathode-ray tubes to flat-screen televisions to smart screens. From dial-up Web access to Wi-Fi.

In-room technology in hotels has evolved over the years, and it will only continue to do so. But what are the changes hoteliers can expect next? And in an industry often accused of being behind the curve when it comes to technology, what do hoteliers need to keep top of mind to add to the guestroom experience?

Five leaders responded to these questions in this Hotel News Now virtual roundtable. This is what they had to say.

From where it stands today, where do you see in-room technology headed in the next few years?

Mehul Patel, chairman and CEO of NewcrestImage
“Technology, notably Bluetooth, will increasingly make rooms more ‘open’—both literally and virtually. For example, mobile technology will allow guests to unlock and enter their rooms. And after they are in their room, guests will open their room to the virtual world with customized entertainment content and room management. Because today’s travelers have their own mobile devices, it enables us as hoteliers to provide them with technology that makes their stay with us smarter and simpler—‘smarter’ thanks to Bluetooth and ‘simpler’ by facilitating their use of personalized content in movies, television and music.”
 
Joachim Högefjord, managing director, and Gül Heper, commercial manager at HTL Hotels
“We believe it’s most important to stay relevant to the guests and their needs. In-room technology is not about filling a hotel room with all possible gadgets; it is about enhancing the guest experience and especially simplifying the stay at the hotel.“We need to continue looking at existing behaviors and identify the right needs, what devices are the guests bringing with them and review how to incorporate this in the room in order to provide a better guest experience. One given area, where we already supply device independent solutions is in terms of in-room entertainment. Why equip the hotels with expensive hotel TV systems with on-demand movies when most guests today can and will be using their own devices to stream and mirror everything from movies to HBO and Netflix for free with their existing subscriptions?“Mobile access to the room is of course also an area that will continue to develop and be more and more standardized. Today there are few hotels and chains that are fully offering this to all guests independent of distribution channel. From the start we decided that this should be one of our standard features, and already in spring of 2014 we launched our own app with mobile key.“Of course there is a lot of talk about in-room control systems for lighting, heating, shades, entertainment controls, etc. They might grow in the future, but at the same time it is generally a learning curve to handle them, and with guests staying in general 1.5 days in a room, it might add more complexity to your stay than added value.”
 
Bashar Wali, president of Provenance Hotels
“In-room technology will focus on connectivity for the traveler’s personal phone, tablets and computer. Guest-provided media will stream to TVs, USB outlets will be within an arm’s length away from the bed and desk in every guestroom. Personal technology has surpassed in-room hotel technology to the point of no return. With annual upgrade cycles for consumer technology devices, hotels can no longer spend enough to catch up. Hoteliers, stop implementing technology of the day and just let travelers have power outlets, free, fast Wi-Fi and access to their own media.”
 
Anna Blount, market research manager of MMGY Global
“When asked which device they are most likely to watch television or cable movies on during a hotel stay, 86% of travelers chose the in-room television, while 13% chose their personal laptop, 6% their tablet and 4% their smartphone.“Similarly, 84% of travelers said they were most likely to watch pay-per-view movies on the in-room television during a hotel room stay, while 9% chose their personal laptop, 9% their tablet and 3% their smartphone. Although in-room television is still dominate, we expect usage of personal laptops and tablets to consume in-room entertainment to increase considerably over the next five years.”
 
Euan McGlashan, co-founder and managing partner of Valor Hospitality Partners
“Technology will soon control the entire guestroom, and that’s a good thing. A guest will be connected to every element of the in-room experience—for example, entry locks, television, music, lighting, temperature, roomservice and in-room deliveries or services—through simple switches, remote controls and hand-held devices, which are either theirs or provided by the hotel.”

For more: http://bit.ly/1YzEVea

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by | September 14, 2015 · 9:16 am

Hospitality Industry Risk Update: “5 Ways to Pummel Pests at Your Hotel”

“(Hoteliers) really should have an independent inspection of their vendors,” Rivard said. “The prime food producers throughout the country already do that. They’re checking them out,20150911_pest control whether they’re buying some ingredient or working with a pallet manufacturer.”

A hidden danger of record high demand is more guests walking through the door means a higher chance anything from bed bugs to cockroaches to rats and ants are following right behind.

One of the few things more disconcerting than the pests themselves is the effect they can have on your bottom line.

A recent survey conducted by researchers at the University of Kentucky showed a single online review mentioning a bed bug sighting caused many to immediately write off a hotel. The first reaction of 56% of potential guests will be to no longer consider staying at that property, 7% will shorten their stay and 12% will seek to avoid that hotel’s brand in the future.

The same survey, results of which have not yet been published, showed 60% of guests who spot a bed bug would immediately leave the hotel, which is almost three times as many as those who would leave after finding someone else’s blood somewhere in a guest room.

“It’s a maddeningly difficult problem to deal with,” said Michael Potter, an entomologist at the University of Kentucky and one of the authors of the study. “Everybody is dealing with bed bugs … but hospitality is especially vulnerable because people rely so much on social media when making decisions.”

The potential damage to your hotel’s reputation is only worsened when considering the fact that less than a third of those surveyed could identify successfully a bed bug, with many confusing other pests like lice, ants, termites and ticks for bed bugs.

The harsh reality is there are no 100% infallible methods to keep pests from darkening your doorways, but there are some things to make sure they’re less welcome after arrival.

Here are five ways experts seek to prevent pests.

For more: http://bit.ly/1gmpxiM

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