Hotel Security: Food & Beverage Fraud and Loss Prevention

By Peter Goldmann President, FraudAware Hospitality | March 31, 2010

For a hotel food and beverage operation generating, say, $1 million a year in revenue, that 5% or $50,000 represents a significant loss. For large chains, the math can easily produce some fairly staggering loss figures.

The major reasons for this high rate of fraud loss include:

Moreover, liquor bottles, lobster tails, steaks and other high-value items are easily concealed and misappropriated by dishonest employees.

According to Derk Boss, Vice President of Surveillance at the Stratosphere Casino Hotel in Las Vegas, "The key to deterring and detecting food and beverage theft is effective implementation of controls, policies and procedures... and routine monitoring by department management to make sure that employees are adhering to required practices."

Common Frauds in Hotel Bars

With this backdrop of easy employee access to food and liquor inventory, combined with the all-too-common lack of tight anti-fraud controls, it is easy to see why the following bartender frauds are draining liquor profits in most hotel lounges:

Coming up in January 2018...

Mobile Technology: Relentless Innovation

Technology has become a crucial component in attracting and retaining hotel guests, and the need to enhance a guest’s technology experience is driving a relentless pace of innovation. To meet and exceed guest expectations, 54% of hotels will spend more on technology in 2018, and mobile solutions in particular will top the list of capital investments. Many hotels are integrating mobile booking, mobile keys, mobile payments and mobile check-in into their operations. Other hotels are emphasizing the in-room experience, boosting bandwidth and upgrading flat screen TVs to more easily interface with guest mobile devices. And though not yet mainstream, there are many exciting technology developments on the near horizon. The Internet of Things (loT) is taking form in some places, and can be found in guest room control systems, voice activation systems, and in wearable sensors that can be used for access and payment options. Virtual reality headsets are available at some hotels so guests can enjoy virtual trips to exotic locations or if off-property, preview conference facilities and guest rooms. How long will it be before a hotel employs a fleet of robots for room service, or utilizes a hologram as a concierge, or installs gesture-controlled walls that feature interactive digital displays? Some hotels are already using augmented reality for translation services, or interactive wall maps, or even virtual décor. This pace of innovation is challenging property owners and brands to stay on top of the latest technology trends while still addressing current projects. The January Hotel Business Review will explore what some hotels are doing to maximize their opportunities in the mobile technology space.