



Street Cred - How is Your Hotel Brand and Reputation Perceived? Just ask Hyatt Hotel officials today why it's important to have brand and reputation insurance coverage for your hotel operations. The company's recent move to fire its Boston-based housekeeping staff and opt to outsource work to a staffing firm outside of Massachusetts - based in Georgia, in fact - has earned Hyatt more publicity than it cares for. Worse, the company had the staff train their "vacation" replacements, but failed to mention that these were the people who would have their jobs once the 100 modestly paid staffers were let go. Ouch. Since the move was announced August 31st, Web-based news articles are littered with reader comments citing "shame on them" types of admonishments; that's press coverage no company wants. In tough economic times, hoteliers often have to make even tougher business decisions. Those decisions can leave the hotel open to harsh media coverage or worse, lengthy union battles and dipping customer opinions. In the case of Hyatt, their former staff, nonunion workers, are pressing the issue in the media and in the court of public opinion with the help of a local hotel workers union, which they did not belong to. If your hotel is considering significant changes to the business model, talk with your hotel insurance broker. Any change to your operations should be viewed from a risk assessment standpoint to uncover any potential liabilities. Also, have your hotel insurance broker go over your current hotel insurance coverage to determine what, if any, coverages need to be altered or added to. If you don't already have coverage for brand or reputation risk, now is the time to consider covering losses stemming from bad publicity, faulty products, or failed business practices that negatively reflect on your company brand. What may seem a simple, cost-effective change could, as Hyatt's management discovered, turn into a very public outcry that has a real impact on the bottom line. If you don't already have coverage for brand or reputation risk, now is the time to consider covering losses stemming from bad publicity, faulty products, or failed business practices that negatively reflect on your company brand. VIP Hotel Insurance is pleased to partner with Kurt Kramer, a familiar face in the hospitality insurance marketplace. His knowledge and experience ensure that your assets (as provided to him) will be protected in the event of a claim or catastrophe. Kurt enables VIP to bring great, rewarding and an all encompassing insurance program to the Hotel owner.
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