Hotels, resorts, and restaurants – we have good news and bad news. Let’s start with the good news, shall we? For the first time since the start of the pandemic, travel spending was 3 percent ABOVE 2019 levels in April 2022. Plus, 28 percent of travelers plan to spend significantly more this summer. The bad news is that, of course, with more guests visiting and making plans to visit your hotels, resorts and restaurants, the more risks you face.
5 risks the hospitality industry should be prepared for this summer
As hotels and resorts continue to leverage technology to enhance their guest experiences and streamline operations, cyber risks and exposures increase. The introduction of new interconnected, guest-centric technology poses new threats to hotel security, specifically, guest data privacy. The bottom line is that simply having a website or storing sensitive data, such as customer credit card information, makes you a target for cybercriminals, and the consequences of a data breach are no joke. Do you have proper cybersecurity practices in place? Is your cyber insurance policy up-to-date?
While getting guests in the door is the sole goal of the hospitality industry, guests themselves can also pose a threat. From lawsuits from people who get injured to damaged guest rooms and/or amenities, guest behavior can cause a number of financial problems. The reality is unexpected guest incidents occur all the time. While we try to prevent them as much as possible, it’s important to be prepared for the unexpected with proper insurance coverage.
Brace for impact, the NOAA is saying as we approach hurricane season. NOAA’s outlook for hurricane season, which extends from June 1 to November 30, predicts a 65 percent chance of an above-normal season with 14 to 21 named storms, of which 6 to 10 could become hurricanes, including 3 to 6 major hurricanes. Be proactive and make sure you are covered for storm and water damage that the extreme weathering may cause. Are you prepared for hurricane season? The time to prepare is now – not when a hurricane is tracking in your direction. Read 4 steps to hurricane preparedness here.
Speaking of severe weather, meteorologists also predict that much of the country will continue to see above-normal temperatures through August. As temperatures climb, the risks of heat-related injuries and fatalities for employees and guests rise. Believe it or not, heat is one of the leading weather-related killers in the United States, resulting in hundreds of fatalities each year. In 2019, 884 people died and 2,061 were injured in the U.S. from exposure to excessive heat. As an employer and/or business owner, it’s important to take steps to prevent heat-related injuries this summer. Read 4 ways to prevent heat-related injuries here.
And last, but certainly not least, staff shortages continue to plague the hospitality industry. A shortage of staff presents risks, such as the increased likelihood of employee burnout, workplace injuries, property damage and others. Read how to mitigate labor shortage risks here.
With proper planning, risk management strategies and insurance coverage, you can mitigate the effects of these increased risks.
Be Protected for the Unexpected
For almost 70 years, Kemmons Wilson Insurance Group has worked alongside hoteliers, resorts and restaurants like you to build custom insurance programs. We get to know your portfolio, make site visits, listen to your team and then craft a specialized insurance product to protect your portfolio. We know your business, because our roots run deep in hospitality. Our risk experts are here to help you assess the ever-changing risks your business faces. Contact an expert at KWIG to review and discuss your insurance and risk management programs.