In 2019, litigation heated up in several areas that will undoubtedly continue into 2020, and prudent hotel operators will give them proper consideration as protocols and training priorities are established for 2020.
The first and most urgent item is website ADA non-compliance litigation. These pesky lawsuits, like their predecessors, ADA Drive-By Lawsuits, are being filed aggressively and often against a franchisee of a brand that has failed to fully disclose its ADA-compliance initiatives. This information is crucial, according to the complaints, so that a person with a disability may make an informed decision about their lodging choice, just as any other traveler. So take advantage of your brand’s infrastructure by clearly identifying and listing all of your compliance initiatives and tools on your hotel‘s webpage(s). Most brands have made it easy for you by creating a survey or other type of questionnaire that can guide you.
For general guidance with ADA compliance, the ADA National Network has 10 regional centers to provide information, guidance and training on the ADA. Or visit its hospitality-specific site.
Human trafficking
More victims of human trafficking are seeking compensation from hotels where the trafficking was based and or where it was facilitated. The claims are predicated on the argument that the lodging property knew or should have known (as a reasonable hotel operator) of the trafficking scheme and, by renting rooms to the traffickers, enabled the scheme. By now, every lodging property should have at least implemented ongoing awareness training for all current and onboarding staff that focuses on the red flags of trafficking and steps to take when those red flags appear. ECPAT and Polaris are two excellent resources for training content and suggested protocols.
Alcohol
In the past several years, I have become aware of a significant trend to enhance F&B sales in hotels. Because alcohol has spectacular contribution margins, often alcohol sales are emphasized. The companion trend to increased alcohol sales efforts has been the concurrent belief that since people are drinking in a hotel, then they are more than likely not driving, so the responsible service of alcohol concept receives short shrift.
This is a very narrow and short-sighted view of the perils of the over-service of alcohol. When people over-consume, in addition to driving erratically, they tend to make poor decisions and often engage in many other dangerous behaviors. Aggressive behavior manifested physically, verbally, emotionally and sexually often segues from drunkenness. As it appears that hotels are being sued for the over-service of alcohol at a much faster pace than ever before, the prudent operator will emphasize the responsible service of alcohol by developing comprehensive policies, launching intensive ongoing training for staff, and holding everyone accountable to the policies and training.
Disclosure of ownership and operator during reservation process
In 2019, several lawsuits were reviewed that alleged that the brand/franchisor should be liable for the acts or omissions of the franchisee because the guest had a reasonable expectation that by staying at a lodging property operated by the brand, the entirety of that brand’s resources were behind the hotel. This claim is usually brought under a state’s deceptive trade statute alleging that, due to the flag on the hotel, the information on the website, central reservation system along with brand promotions and marketing, guests could reasonably conclude they are staying at a property owned and operated by the brand.
As damages can often be tripled under these laws and attorney fees awarded, this is a clever method to keep the brand involved as a defendant in the litigation and exert pressure on the franchisee to resolve the matter before trial. Since most owners/operators are not announced to guests until they arrive at the property via a small placard near the front desk, it may be time for the lodging industry to consider announcing the owner/operator of the property on its website prior to the reservation being concluded (similar to airlines, that are required to do so by law) in order to blunt these types of allegations.
Stephen Barth, author of Hospitality Law and co-author of Restaurant Law Basics, is an attorney, the founder of HospitalityLawyer.com, the annual Hospitality Law Conference series and the Global Travel Risk Summit Series. As a professor at the Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, he teaches courses in hospitality law and leadership. In addition to legal and risk management insight, Stephen specializes in communicating the importance of Emotional Intelligence in leadership roles; and has provided valuable insight to many companies including The Methodist Hospital System, Best Western Hotels & Resorts, Dine Equity, Business Travel News and Aramark. His fun, fast paced presentations provide practical information and solutions to enhance your personal and professional life.
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