The hospitality industry is acutely aware that security is a top concern for today’s traveling public. Risk management, loss recovery and fraud prevention are all byproducts of increased security that global businesses are focusing on today. Hotels and hospitality companies should be no exception.

An Ounce of Prevention is Worth a Pound of Cure

by Elizabeth Ivey

 

 

While all business sectors are exposed to criminal and risks we have come to recognise that the Hospitality and Leisure, (including other travel service providers) has a unique set of risks over and above traditional industry.

 

Risk management across different industries has a lot in common with purpose, management and preventative remaining the objectives.  However, the Hospitality and Leisure sector is also exposed to guest and traveler expectations, and differences in loss and crime risks.  The risks vary from day to day and from time to time during the same day; the building, food, beverages, accommodation, facilities, and hospitality are all physical parts of the product.  Not so in manufacturing or retail, where the products are marketed and sold away from the production area.

 

Common factors identified in the Hospitality and Leisure market are:

 

· Most areas in the Hospitality and Leisure sector are labour intensive thus productivity has a direct impact on service.  Service is an absolute expectation of the traveler or guest.

· Vehicles, aircraft, hotel and resort buildings, boats, sport and leisure equipment will consistently demand maintenance and thus their economic life is directly linked to business opportunity.

· The guest or traveler demands serviceable facilities which are comfortable and safe with access to basic amenities such as food and recreational facilities.  Circumstantial factors such hotel rooms, location, access routes, pricing and value for money are up to the individual traveler’s decision.

· Risk and legal liability has a direct impact on the service capability of the Hospitality and Leisure entity in terms of protection of the traveler and their personal property.  It is this aspect which is the direct responsibility of the service provider.

· At minimum, guests and travelers will demand secure and safe experiences during their travel activities.

 

In turn investors expect and demand that Hospitality and Leisure services will be operated as efficiently and profitably as possible.  Hospitality and Leisure service providers who place risk management at a paramount level will have the competitive edge over their rivals.

 

A sample of risks identified are:

 

· Travelers during their excursions and activities, are in various states of mental and physical alertness being awake, energetic, sober or relaxed therefore, it is up to the service provider to ensure the environment is safe and secure.

· Tourist groups, resort, conferences, promotional, recreational and special events often attract the attention of undesirable and criminal individuals.

· Internal theft and fraud.

· The traveler’s or guest’s mere presence elevates the risk in terms of consequences of their actions, facilities provided e.g. safe and roadworthy vehicles and the protection of their personal property which they often have with them.

· Hotels for example are open to the general public, while restricting access to guest only facilities.

· Food poisoning and other disease prevention such as Legionnaires disease.

· High profile persons and politicians make use of hotels and conferences centres which attracts another set of risks such as protestors and conversely impacts on guest safety.

· All Hospitality and Leisure service providers are exposed to all types of crime risks.

· Employee and guest injury to a lack of indemnity or risk identification.

 

The some of the consequences of the risks could be:

 

· Public liability litigation for damages.

· Claims for personal injury or losses.

· High cost of sales due to internal theft, fraud or negligence.

· Negative publicity or loss of investor confidence.

· Government led inspections or enquiries as a result of inadequate prevention and avoidance measures, which in turn may result in fines or litigation.

· Lost revenue due to lack of controls and misappropriation.

· Product and property sabotage.

· Staff despondency and low morale.

· Refusal of operating or liquor licenses.

· Serious or fatal injuries to staff or clients.

· Loss of business resulting in loss of sales.

· Unforeseen and expensive rectification construction work.

· Financial reimbursement for losses.

· Failure of brand quality.

 

Our services by our dedicated Hospitality and Leisure team are able to provide the following:

 

· Labour dispute support services

· Hospitality and Leisure forensics and investigation

· Alternative dispute resolution

· Security risk management measures and advisory services

· Security risk audit and evaluation for profiles and our HoSpaL award programme which can be completed as a pre-audit to meet an individual request or as an ongoing assessment.

· Surveillance and observation strategies.

· Safety, Health and Environment (SHE) compliance and risk management

· Emergency preparedness and Crisis management

· Country risk evaluation and intelligence for the travel industry

· Airport and aircraft security

· Awareness programmes for fraud prevention and safety improvement

· VIP and Executive protection services ranging from chauffeur drive, to protection offices, venue security and privacy.

 

We are leaders in Hospitality and Leisure forensic and risk management services having consulted both regionally and internationally for a number of leading brand names.

ccs

Excellence ♦ Integrity

South Africa

csi

Excellence ♦ Integrity

Namibia

Hospitality

and Leisure