How Hotels May Mitigate Bad Publicity

By Steven D. Weber Managing Partner, Stark Weber PLLC | September 02, 2018

In an age where so many players are competing to be noticed, it is easy to understand why some people say that there is no such thing as bad press.  But, is there an area where good press ends and bad press begins? Hospitality players would be well served to plan in advance for any instance of bad press.  In this article we consider a basic potential primer for responding to bad press.

Developing a plan for responding to bad press before bad press arises is one of the most important steps. The plan should include such elements as knowing who is in the response team, developing relationships with designated points of information that might counter bad press, and understanding legal ramifications of certain bad press.  Developing dedicated communication lines before bad press strikes may expedite a response to any bad press.

When a hospitality player develops their response plan, the hospitality player should consider reviewing existing policies and determining what, if any, policies it additionally requires.  As part of this process, the hospitality player should determine what policies apply to which of its contractors or employees.  For example, given the prevalence of electronic document systems, it may be crucial to have the person with knowledge of those systems take a lead role in developing a policy to preserve documents in accordance with the applicable law.  It is important that all contactors or employees with information that may need to be preserved pursuant to law be aware of those policies.

Hospitality players should consider putting together the appropriate response team.  The exact composition of a response team will depend upon the hospitality player. A hospitality player may want to include a Chief Technology Officer or other individual who has sufficient knowledge of the electronic systems used by the hospitality player.  This person may work to provide access to important systems, to ensure that systems are maintained, that the hospitality player can comply with any preservation requirements, and more.  A hospitality player should include a person with knowledge of the internal dynamics of the hospitality player or who knows which team member has the requisite knowledge needed to respond to the bad press. A hospitality player may also want to consider adding legal counsel to its response team. 

In some cases, bad press may be actionable.  Legal counsel may allow a hospitality player to assess its options for seeking relief in response to bad press.  Legal counsel may also assist in seeking immediate injunctive relief, if necessary.  Not acting promptly in response to an event could prevent any injunctive relief. 

In some cases, bad press may give rise to a lawsuit.  The exact claims that are available to a hospitality player related to the bad press will depend upon the specific facts that relate to the bad press.  Such claims may include, but are not limited to defamation, trade libel, or business disparagement.  Vetting of the bad press is essential to determine the possible merits of such an action.  In many cases, this will involve a strong understanding of the available facts.  When bad press features facts that are disputed, it is essential that an investigation be conducted into the allegations in the bad press and that the hospitality player know which facts are true and which appear to be false.  Knowing which facts are true and which appear to be false will allow a hospitality player to determine the feasibility of maintaining a cause of action related to that bad press. 

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Coming up in January 2019...

Mobile Technology: The Future is Now

Mobile Technology continues to advance at a relentless pace and the hotel industry continues to adapt. Hotel guests have shown a strong preference for mobile self-service - from checking-in/out at a hotel kiosk, to ordering room service, making dinner reservations, booking spa treatments, and managing laundry/dry cleaning services. And they also enjoy the convenience of paying for these services with smart phone mobile payments. In addition, some hotels have adopted a “concierge in your pocket” concept. Through a proprietary hotel app, guests can access useful information such as local entertainment venues, tourist attractions, event calendars, and medical facilities and services. In-room entertainment continues to be a key factor, as guests insist on the capacity to plug in their own mobile devices to customize their entertainment choices. Mobile technology also allows for greater marketing opportunities. For example, many hotels have adopted the use of “push notifications” - sending promotions, discounts and special event messages to guests based on their property location, purchase history, profiles, etc. Near field communication (NFC) technology is also being utilized to support applications such as opening room doors, earning loyalty points, renting a bike, accessing a rental car, and more. Finally, some hotels have adopted more futuristic technology. Robots are in use that have the ability to move between floors to deliver room service requests for all kinds of items - food, beverages, towels, toothbrushes, chargers and snacks. And infrared scanners are being used by housekeeping staff that can detect body heat within a room, alerting staff that the room is occupied and they should come back at a later time. The January Hotel Business Review will report on what some hotels are doing to maximize their opportunities in this exciting mobile technology space.