Hotel security demands more investment in enhanced security processes

Common vulnerabilities the reason hoteliers should give security a higher priority

Problem

This basic security is not enough to address the kind of security breaches occurring in hotels around the world

Background: Hotels face many security threats

There are attractive targets for criminal acts, and if not properly protected, hotel premises are an easy targets for criminal acts with devastating consequences.

The vulnerability that Hotels faceCrime against hotels have gotten more viral, as evidenced by that most unfortunate terrorist attack in Mumbai, India where scores were killed and injured in a horrific assault at the Taj Mahal and Oberoi Hotels. While this represents an extreme it also illustrates the vulnerability that Hotels face.

More common vulnerabilities include:

• the lone physical attack on Hotel guests and employees

• theft of merchandise and services

• injuries and claims due to both real and alleged circumstances

• the devastating effect of fire and natural disaster

Hotels are the primary target of credit card fraudsters

RISK OF TYPICAL HOTEL SECURITY

For hotel operators, relying on such basic security is particularly dangerous, given that a serious security breach can significantly damage a hotel operator's brand name.

What is ultimately at stake, in the worst case scenario

• Possibility of death or injury • Damage and destruction of

property• Adverse publicity from an incident • Ruined brand reputations • Business failure • Adverse effects to tourism in

Barbados

TYPICAL HOTEL SECURITY NOT ENOUGH

In reality the security measures employed by the majority of hotels is very simplistic: security cameras in the lobby or other public areas and coded access control cards for elevators and rooms. This is an approach which is pretty typical today.

1. Based on CCTV technology that is proven to be ineffective at preventing crimestudy after study has concluded that CCTVs don't deter most crime. A study done by research in the UK who examined 44 studies done on the effectiveness of CCTV and found that the vast majority agreed that CCTV was generally ineffective at preventing crime. The only instance where CCTV was moderately effective was in parking lots, preventing some vehicle crimes. But that effectiveness was also found to be greater when accompanied by increased lighting and guards.

2. Reliant on a small dedicated security force that is often not managed properly

Lack of training means guards lack knowledge of modern security best practices, fail to present a reassuring security image to guest

No processes in place leads to inability to handle security and safety situation

Focused on guest & visitor issues while staff issues cause the largest drain on resources (workplace safety, staff theft)

No executive/senior management level oversight means no one to champion development

Creates Them vs. Us organization culture, which alienated other staff from participation in hotel protection

Even when outsourced to professional security firms

hotel security tends to function in an ad hoc

manner

Relevant processes disaster recovery emergency management physical security workplace health and safety food safety program incident management process accounting internal controls food and beverage safety processes

The main issue is the lack of appropriate security processes. In other words in a case of a guest having a medical emergency, for example, there are usually no people professionally trained to handle such situations, even if certain tasks are outsourced to security professionals.

3. Lacks appropriate security processes

Security investment inadequate because:

Faced with competition for resources, most hotel operators are unwilling to spend money on security beyond basic systems, despite numerous attacks, thefts and break-ins.

REASON FOR LACK OF INVESTMENT IN SECURITY

The focus on contribution to profit is one of the major reasons why security is often seen almost as an afterthought by hoteliers. Because security is seen as not profitable, investors and hotel operators are reluctant to invest in safety and security beyond the basics.

ENHANCED SECURITY CONTRIBUTES TO PROFITABILITY

Unlike basic security, investing in Enhanced Security provides contributions to return on investment while improving the safety and security of the hotel.

ROI

ENHANCED SECURITY: ROI CONTRIBUTOR

Enhanced Security functions as a way of managing the roles, relationships, processes and systems that are unique to directing and controlling outcomes within security in order to achieve the organization’s goals, cut costs, drive performance and increase the organization’s value.

Features of enhanced hotel security

Intelligent Security Technology Involvement of workforce at

large in protection of the property

Processes and training for all security operations:– disaster recovery – emergency management – Physical security– workplace health and safety– food safety – incident management– accounting internal controls – food and beverage safety

Security that contributes to hotel ROI

In addition to providing more protection for people, property and information the following benefits bring contributions to the financial returns of hotel operations through cost reductions and improvements in marketability of the hotel:

Reduces the rate of employee theft

Theft and inventory shrinkage is a primary concern for most hotel operators and employee crime is the chief source of such loss. More theft occurs from employees than with guests of the hotel. More value is walking out the back door than the front.

$ Employee theft accounted for 35.3% of shrinkage

Reduced Insurance Rates

Insurance rates in the hospitality sector are impacted directly with security measures undertaken by each establishment. North American industry statistics suggests that establishments with fully functional physical security solutions can lower their liability rates by 5-10% annually.

Reduced workers’ compensation cost for workplace accidents

Workplace accidents place a significant burden on employment costs; in terms of insurance cost, lost productivity and low morale. Slips, trips and falls is among the most common causes of workplace injury in the hospitality industry. The average workers’ compensation cost for these types of injuries exceeds the average cost of other injuries by 14%.

Adds Hotel Security as an AmenitySecurity as another amenity, a

value-adding service - just like the bar, restaurant, health centre, turn-down or valet-parking - that can be showcased to promote the hotel as a safe haven and secure environment. A Cornell University study on hotel security found that hotel guests have a high acceptance of enhanced security measures, along with a willingness to pay extra for some of them.

Increased Market Share

Hotel safety and security is a growing concern among international travelers throughout the world. Effective security shows customers that your hotel cares about protecting their safety and security and people are willing to pay more for the assurance of safety.

Results in a well run, efficient hotel with an excellent reputation

Protection of the property, its guest, staff and information as a shared responsibility by all, with everyone aware of their individual roles and responsibilities. When all staff takes security seriously as a service, the result is a well run, efficient hotel with an excellent reputation that is attractive to travelers

Builds Organization culture of vigilance

Organization wide security awareness training when conducted regularly does more than merely safeguard hotel premises. It also helps to build up and sustain a culture of vigilance

Other Benefits of enhanced security

• Guests feel safe and secure• Criminals and are deterred• Improvement in staff morale, trust and

teamwork• Can dramatically reduce the financial

repercussions of a claim following a serious incident.

• Better service to guests• Better publicity and improved reputation for the

brand• Increased occupancy and higher repeat business• Increased respect and collaboration with local

government and police• Everybody benefits, hotel guests, staff and

managers.• Nothing out of the ordinary happens, hotel

security is successful.

CONCLUSIONRather than following the typical emphasis on more expensive hardware Enhanced Security is all about bringing more secure business practices into all aspects of your hotel operations by engaging the workforce at large and creating the optimum connection between their job functions and the overall security needs of the hotel. In addition to providing more protection for people, property and information this sustainable strategy has a positive effect on the financial returns of the operation, as well as on employee morale and job satisfaction