Lesson 3

Risk Management for

Hospitality Industry
Beauty Rose M. Gandarosa

Risk Management as Applied

to Safety, Security
and Sanitation
 OBJECTIVES:
At the end of the period, the students should be able to:

1. Discuss the importance of a guest;

2. Identify the best practices for hotel customer service
recovery;
3. Assess the liability of hotel in personal injury claim; and
4. Identify the impact of branding.
 GUEST BEHAVIOUR

Guest may be considered as the lifeblood of the hotel

industry. Without the happy and contented guests
who have been patronizing the services of the hotel,
survival of the industry would be up to the lowest
extent. There are however some instances wherein
the guests are becoming the source of profit.
Best Practice for Hotel
Customer Service
Recovery
The following best practices for hotel customer
service recovery were enumerated:

• Deal with guest’s complaints the very

moment they arise;
• Ensure the complaints can reach the right
person;
• Build a full picture on guest preferences;
• Keep tabs on recovery costs;
• In-depth analysis of service recovery
efficiency
 Management
Dashboard
is a collection of critical hotel data in
a usable format, needed by the hotel
to analyse the past and current hotel
performance, predict future, and
formulate strategies.
 Liability of Hotel in a
Personal Injury Claim
 Liability of Hotel in a Personal Injury Claim
Duties of the Hotel to the Guests
Hotel is expected to exercise reasonable care in its business
operation to protect its guests.

Specifically, the hotel is expected to do

but not limited to the following:
● Exercise reasonable care in hiring
● Inspect the hotel grounds and hotel staff.
maintain the property in a
● Train hotel pool staff to prevent
reasonably safe condition.
injuries to guests.
● Maintain adequate lighting, a duty to
● Maintain stairs and elevators.
keep steps dry and unobstructed,
● Maintain locks on hotel rooms.
and a duty to repair hotel defects.
● There is also a duty to reasonably
● Control insect infestation
construct hotel steps or warn guests
● Maintain proper security
of unusual staircase locations.
Branding
It has been defined as “a product
enriched with a unique identity to
create a meaningful point of
differentiation from competing for
products that are designed to satisfy
the same need. It mirrors the
company’s values, mission, and vision
and uses verbal and graphics tools for
representation and facilitation of
identification”.
 RISK IN BRANDING
01 FUNCTIONAL RISK
Product performance does not
fulfil customer expectations

02 FINANCIAL RISK
Poor price/ quality ratio

03 SOCIAL RISK
Others do not accept the product

04 PSYCHOLOGICAL RISK
Product affections of the user’s
mental well-being

05 TIME RISK
Opportunity cost of alternative
seeking due to product failure
Internal branding and employee
brand commitment have a
significant effect on employee
brand behaviour.
THANK YOU FOR
LISTENING
Beauty Rose M. Gandarosa