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Peter Goldmann

Industry experts estimate that up to five cents of every dollar of revenue in a restaurant or bar is stolen. Of the five cents, it is estimated that four cents is stolen by employees. Pretax net income for successful restaurants and bars is generally between four and ten percent. Therefore, by merely preventing one-half of a business's fraud, pretax income would be significantly improved. 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. In this article we'll explore the major reasons for this high rate of fraud loss including scams in hotel bars, and Front and Back of the House. READ MORE

Frank Meek

If you haven't already heard about the return of bed bugs, it's probably only a matter of time before you do. These biting bugs were driven away back in the 1960s, but since the late 1990s, bed bugs have been making a comeback, with much of the activity being found in hotels and other overnight-stay facilities. What is leading to this resurgence? One of the most likely reasons for the uptick in activity is an increase in international travel. According to the Travel Industry Association of America, about 27.8 million foreign visitors came to the United States in fiscal year 2003. By "hitchhiking" on the luggage of unsuspecting travelers, bed bugs can be transported from one place to another quite easily. READ MORE

Peter Goldmann

Despite the growing attraction and convenience of purchasing goods and services by credit card, businesses of all kinds - including hospitality companies - are sitting ducks for credit card fraudsters. The problem is two-fold: While until recently, most credit card fraud involved "guests" using stolen or fraudulently obtained credit cards to pay for hotel charges, now the Internet has added a new dimension of credit card fraud threatening hospitality businesses. For example, cyber criminals can hack into a company's customer database and steal large batches of guest credit card information that they then sell on the black market. Or, they can use the stolen credit card information to manufacture counterfeit credit cards, which they then use to fraudulently purchase goods or services. Making matters worse, like companies in other industries that have been hacked by information thieves, hospitality companies could suddenly find themselves on the receiving end of lawsuits claiming damages for liability related to the theft of confidential guest information. To prevent incidents such as these, optimizing the company's information security defenses is the obvious first step. READ MORE

Frank Meek

It seems cockroaches, one of Earth's oldest active species, are learning new tricks when it comes to survival. These hardy pests, which have survived 350 million years on the planet, lately are demonstrating more of the cunning that has made them so resilient. Since the 1990s, cockroaches have exhibited an increasing tendency to avoid pesticide baits commonly used in pest control. If your hotels are seeing an upswing in the reports of roach activity, this could be a reason why. READ MORE

Peter Goldmann

Kickbacks are an all-too-common restaurant and hotel crime involving insiders and outside vendors. Hospitality companies that acknowledge their vulnerability to these schemes are one big step in the direction of preventing and deterring significant losses. Kickbacks in hotels and restaurants can take many forms, but regardless of their unique and often ingenious qualities, nearly all kickback crimes boil down to improper payments being made to a company employee by an outside vendor. READ MORE

Frank Meek

Colder weather is upon us, and your guests will want to spend the night tucked warmly in bed - but they won't be the only ones trying to escape the cold - rats and mice will also be looking for a warm place to spend the night, and if you're not prepared, you might find your establishment playing host to some very unwanted guests. READ MORE

Peter Goldmann

The Association of Certified Fraud Examiners (ACFE) reports that the average US company loses 6% of gross revenue to internal fraud every year. When you add frauds committed by outsiders-dishonest hotel guests, vendors, restaurant patrons, etc- the loss figures become even more startling. For hospitality security personnel, auditors and controllers, the biggest anti-fraud challenge is the seemingly limitless variety of ways that employees and outsiders find to steal from the organization. READ MORE

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Coming up in May 2020...

Eco-Friendly Practices: Creative Innovation

Being eco-friendly is no longer a fad. It is an urgent planetary need and hotels are actively doing their part to reduce their carbon footprint by implementing sustainable, green practices. In addition to the goodwill derived from doing the right thing, hotels are also realizing the benefits to their business. A large percentage of Millennials expect hotels to be eco-friendly and will only patronize those properties that are proudly conforming. Consequently, more hotels are realizing that sustainability is a key element in a successful branding strategy. In addition, going green can lead to a more profitable bottom line, as savings on electricity, water and cleaning materials can add up. Also, there are other advantages that come with being an eco-friendly business, such as government subsidies and tax and loan incentives. As a result, many hotels are finding innovative ways to integrate eco-friendly practices into their business. Geo-thermal energy systems, along with energy-from-waste systems, are being used to heat and cool the property. Passive solar panels, green roofs, natural lighting and natural ventilation strategies also assist in energy conservation. Low-flow water systems and plumbing fixtures make a contribution, as does eco-friendly hardwood flooring, and energy efficient televisions and appliances throughout the property. In addition, some hotels have implemented in-room recycling programs, and only provide all-natural, personal care items. One hotel has actually constructed a bee-keeping operation on their grounds. Not only is this good for the bees but the hotel also produces products from the operation which they sell. This kind of creative innovation also holds enormous appeal to guests. The May issue of the Hotel Business Review will document what some hotels are doing to integrate sustainable practices into their operations and how they are benefiting from them.