Hotel Law: A Labor Crisis and Cyber Security

According to a recent study, the hospitality industry accounted for 2.9 trillion dollars in sales and in the U.S. alone, was responsible for 1 in 9 jobs. In an industry of that scope and dimension, legal issues touch every aspect of a hotel's operation, and legal services are required in order to conform to all prevailing laws and regulations. Though not all hotels face the same issues, there are some industry-wide subjects that are of concern more broadly. One of those matters is the issue of immigration and how it affects the ability of hotels to recruit qualified employees. The hotel industry is currently facing a labor crisis; the U.S. Labor Department estimates that there are 600,000 unfilled jobs in the industry. Part of the problem contributing to this labor shortage is the lack of H2B visas for low-skilled workers, combined with the difficulty in obtaining J-1 visas for temporary workers. Because comprehensive immigration reform is not being addressed politically, hotel managers expect things are going to get worse before they get better. Corporate cyber security is another major legal issue the industry must address. Hotels are under enormous pressure in this area given the large volume of customer financial transactions they handle daily. Recently, a federal court ruled that the Federal Trade Commission had the power to regulate corporate cyber security, so it is incumbent on hotels to establish data security programs in order to prevent data breaches. The lack of such programs could cause hotels to face legal threats from government agencies, class action lawsuits, and damage to their brand image if a data breach should occur. These are just two of the critical issues that the December issue of Hotel Business Review will examine in the area of hotel law.

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Coming up in August 2019...

Food & Beverage: Millennial Chefs Lead the Way

Led by Millennial chefs, hotels continue to foster sustainability, sourcing and wellness within their dining rooms and banquet spaces, and by all measures, this is responsible for an increase in their revenues. In many hotels, the food & beverage division contributes 50 per cent or more to hotel sales and they are currently experiencing double-digit growth. As a result, hotel owners are allocating an increasing amount of square footage for F&B operations. The biggest area of investment is in catering, which is thriving due to weddings, social events and business conferences. Hotels are also investing in on-site market or convenience stores that offer fresh/refrigerated foods, and buffet concepts also continue to expand. Other popular food trends include a rise of fermented offerings such as kombucha, kimchi, sauerkraut, tempeh, kefir and pickles - all to produce the least processed food possible, and to boost probiotics to improve the immune system. Tea is also enjoying something of a renaissance. More people are thinking of tea with the same reverence as coffee due to its many varieties, applications and benefits. Craft tea blending, nitro tea on tap and even tea cocktails are beginning to appear on some hotel menus. Another trend concerns creating a unique, individualized and memorable experience for guests. This could be a small consumable item that is specific to a property or event, such as house-made snack mixes, gourmet popcorn, macaroons, or jars of house-made jams, chutneys, and mustards -all produced and customized in house. One staple that is in decline is the in-room minibar which seems to have fallen out of favor. The August issue of the Hotel Business Review will document the trends and challenges in the food and beverage sector, and report on what some leading hotels are doing to enhance this area of their business.