Analysis of Business Skills and Legal Risks in Hotel Industry

This report examines the critical business skills required in the hotel industry, such as communication, problem-solving, and decision-making, emphasizing their importance for effective management. The main body of the report analyzes various legal risks and requirements that hotel managers and employees must consider, including the Hotel Proprietors Act 1956, the Data Protection Act, the Health and Safety Act 1974, food hygiene regulations, risk management strategies, and the Licensing Act 2003. It discusses the implications of each legislation, providing examples and highlighting the importance of compliance for protecting guests, employees, and the business's reputation. The report concludes by summarizing the significance of data protection, risk management, and health and safety regulations in enhancing the hotel's operations, ensuring consumer attraction and experience. The report uses various sources like books, journals and online articles to support its findings.

Business Skills

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Importance of different legislations in hotel industry..................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Business skills involve all soft abilities, communication skills, presentation, problem solving,
decision-making, team working which are required to be successful in management and business
areas. The purpose of report is to analysis legal risk which managers and employees need to
consider in the hotel industry. Legal risk is the danger of financial or reputation loss which can
outcome from lack of awareness or misunderstanding in the way of law and rules to implement
to business. It involves data protection, food hygiene, risk management, health and safety,
licensing and hotel proprietor act 1956 which can essential in the hotel industry.
MAIN BODY.
From the module, I have learned that many of skills are required to hotel industry such as
communication, problems solving, decision-making, team work and communication
presentation. According to that Yasmin, Sarkar and Sohail, (2016) Communication skills are
very necessary to interact with guests who are staying in the hotel. Verbal communication skill is
important to talk with employees and guests at the workplace. In order to that Solnet and et.al.,
(2016) problem solving skill is also necessary to resolve the any kind of problems like cleanness,
foods and beverages, front office and housekeeping in the hotel. Therefore, managers needs to
improve the problem solving skills which can help to solve the issues within the hotel. In this
context Yang, Cheung and Fang, (2015) Decision-making skills are very necessary to make
appropriate decisions like rooms prices, hiring of employees for every department, providing the
training to them. These decisions can help to complete all the activities of manager within the
hotel industry. After I have learned that various legal requirements require in the hotel industry.
It involves data protection, food hygiene, risk management, health and safety, licensing and hotel
proprietor act 1956.
Importance of different legislations in hotel industry
Liability Act 1956:
This act is also called as Hotel Proprietors Act, 1956 which can followed by hotel industry. The
hotel proprietor can in certain conditions be liable to create good and loss of or harm to property
of guest even thought it was not due to any mistake of proprietor or employees of the hotel under
the hotel proprietor act 1956. This liability such as extend only to property of guests who have
involved sleeping accommodation at the hotel (Maclean and et.al., 2018). For example: the
limited of any article is £50 and total of £100 in case of any one guest except deposited of
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property and for safe custody. Therefore, hotel proprietor is liable to make good any loss to
property of guests. Also, it doest not cover motor cars or any other vehicles of any form or
property lost in them or horse as well as other live animals under the hotel proprietor act 1956.
Therefore, all the hotel operators needs to follow this kind of regulation to protect and secure any
kind of property to the guests.
Data Protection Act, 1956:
The data protection act 1956 is implementation of General Data Protection Regulation in UK.
Each one accountable for utilizing personal information has to adopt strict regulations known as
principles of data protection. Data protection and security regulations are more and more
essential because number of online channels are increased which give information to the hotels.
From the information of guest such as address and detail of credit data to travel and profile data
through channels managers and booking sites. Hospitality sector has second biggest share of
information incidents through industry at 14% (Hotel Data Security, 2019). This raise can be
translated to many vendors which are linked to services of hotel. Therefore, hoteliers make sure
that protecting and securing the personal data in terms of reducing the number of cyber crime
and attacks.
This kind of regulation can aid to increase attraction and experiences of consumers
towards the hotel business. Not only booking channels and online distribution giver can be held
responsible for this increase. Also, internal services like Wi-Fi network in hotel which are risk
elements which distribute many guests and hotel information. Distribution vendors require to
uphold strict security regulation because of these rising risks. Also, they make sure that their
guests know about safety and security accountabilities, so that they easily stay in the hotels
(Fanelli, 2016). For that, managers needs to train to all employees on appropriate security
process for high traffic areas involving lobby, front desk, guest entry point and parking lot. These
kinds of regulations will help to increase the number of guests in hotel in relation to safety and
security at the hotel.
Health and Safety Act, 1974:
The health and safety at work act 1974 lays down broad ranging responsibilities on employers.
They must protect the well-being, security and welfare at work of all their workers and other on
their premises involving temporary, casual and self-employed workers, consumers, guest and
public. In case of hotel business, operators can look continual flows of guests arrive and depart.
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Hotel operators also accountable to ensure that premises are safe for workers to carry out their
roles (Chan and et.al., 2017). Running hotel can be quite hectic for both staff and operators that
frequently activities have to be carried out in hurry, specially if the hotel offer catering.
In order to that, mistakes can all easily occur, things can be overlooked and this can lead
to accident when employee working under pressure and in hurry. Hotel operator has to keep in
force at all time Employers Liability hotel insurance. It is the provision of Employee Liability
Protection Act 1969 that was prepared to make employers purchase insurance to secure workers
against incidents for that they were legally liable (Health and Safety Issues in Hotels, 2019). This
kind of regulation can aid to increase attraction and experiences of consumers towards the hotel
business. These kinds of regulations will help to increase the number of guests in hotel in
relation to safety and security at the hotel.
Food hygiene:
Food hygiene involve food safety, risk related to food and their hazards are becoming an
essential issue to guests creating decisions of purchase. Thus, food processors and handler with
either in hospitality and food processing business can be developed their knowledge and abilities
on assurance of food safety (Bohle and et.al., 2017). For example: visitor expect the hotels they
select to offer food whether it is full service hotels with restaurants and banquet facilities or
limited service hotel offer snacks and micro-cook meals. The accountability of assuring that
these food products are safe falls to them as well as failing to assure that standard operating
process, employees and vendor are all checking to food hygiene and safety standards can leave
hotel at the focus of headlines. Food safety and hygiene regulations also good for taking care of
health and safety of employees as well as guests within the hotel industry. This kind of
regulation can aid to increase attraction and experiences of consumers towards the hotel
business. Therefore, hotel manager make sure about the food safety and hygiene while offering
the food and beverages to the guests. For example: there is group of people want to conduct the
event in particular hotel, so that, manager of hotel needs to make sure about planning of foods
and beverages for guests who are coming in the event. These kinds of regulations will help to
increase the number of guests in hotel in relation to safety and health while ordering the foods
and beverages services of hotel.
Risk Management:
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It is the procedure of determining, assessing and controlling threats to capital and earning of the
firm. These threats or risks can form broad range of sources involving financial uncertainty, legal
liabilities, strategic management fault, accidents and natural disasters (Manning, 2018). For
example: risk management is the most important accountability of hoteliers while keeping safety
and security of their guests. There are various risks occurs in age of cyber crime, terror attacks,
credit card fraud and theft. Therefore, hoteliers offering friendly consumer centric environment
without compromising safety which is liable the largest challenge face. In this context, hotel
mangers needs to follow different practices to minimize the risks like control access, make cyber
security, training to staff, provide security personnel friendly face. A lot of risk management,
comes down to staff training, making ensure that their workers understand what they are doing
and way of doing it (Nguyen, Imamura and Iuchi, 2017). Also, process are put in to place to keep
safe everyone. This kind of regulation can aid to increase attraction and experiences of
consumers towards the hotel business. These kinds of risks influences on consumer attraction
and experience while cyber crime and spreading personal information outside the hotel.
Licensing Act, 2003:
It is an official permission or permit to do, utilize and something as the document of that
permission. It involves underpins all premises which sells alcohol, whether pubs, bars, concert
halls or hotels. A licence can be given through party to another party as component of agreement
among those parties. In this context, hotel industry is largely regulated through different state and
local authorities frequently involving difficult and detailed licensing. Businesses in hospitality
industry can be subject to exact inspection and social control of regulations due to public well-
being and safety concern (Manning and et.al., 2018). Every hotel beginning, from restaurants to
hotels as well as bars requires to be appropriately licensed before it can begin opening. The
licensing is the essential for businesses like hotels, restaurants etc. There are some guides to
know the significance of ensuring that firm is licensed in proper manner. Through licensing,
company need to make sure to bring protection consumers. If firm obtain licence for business, so
that they are assuring that personal data remain private.
CONCLUSION
This report has been summarized that data protection and risk management regulations are
essential for protecting the personal information and minimizing any kind of risks within the
hotel industry. It can be concluded that health and safety act also beneficial for taking of well-
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being , security and welfare of guests who are staying in hotel as well as employees who are
working in the hotel. This kind of regulation can aid to increase attraction and experiences of
consumers towards the hotel business. Furthermore, report has completed that managing various
risks factors such as cyber crime, terror attacks, credit card fraud and theft.
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REFERENCES
Books and Journals
Bohle, P. and et.al., 2017. Work organisation, bullying and intention to leave in the hospitality
industry. Employee Relations. 39(4). pp.446-458.
Chan, E. S. and et.al., 2017. An empirical study of environmental practices and employee
ecological behavior in the hotel industry. Journal of Hospitality & Tourism
Research. 41(5). pp.585-608.
Fanelli, C. L., 2016. Protecting hotel industry business from liability for terrorr attacks. Real
Estate Finance, pp.147-153.
Maclean, M. and et.al., 2018. Political ideology and the discursive construction of the
multinational hotel industry. human relations. 71(6). pp.766-795.
Manning, C. and et.al., 2018. Hotel/lodging real estate industry trends and innovations. Journal
of Real Estate Literature. 26(1). pp.13-41.
Manning, L., 2018. The value of food safety culture to the hospitality industry. Worldwide
Hospitality and Tourism Themes. 10(3). pp.284-296.
Nguyen, D. N., Imamura, F. and Iuchi, K., 2017. Public-private collaboration for disaster risk
management: A case study of hotels in Matsushima, Japan. Tourism Management. 61.
pp.129-140.
Solnet, D. and et.al., 2016. What about the workers? Roles and skills for employees in hotels of
the future. Journal of Vacation Marketing. 22(3). pp.212-226.
Yang, H., Cheung, C. and Fang, C.C., 2015. An empirical study of hospitality employability
skills: Perceptions of entry-level hotel staff in China. Journal of Hospitality & Tourism
Education. 27(4). pp.161-170.
Yasmin, M., Sarkar, M. and Sohail, A., 2016. Exploring English language needs in the hotel
industry in Pakistan: An evaluation of existing teaching material. Journal of Hospitality &
Tourism Education. 28(4). pp.202-213.
Online
Health and Safety Issues in Hotels. 2019. [Online]. Available through :
<https://www.assetsure.com/business/hotel-insurance/health-and-safety-issues-in-hotels/>.
Hotel Data Security. 2019. [Online]. Available through : <https://www.smarthotel.nl/en/hotel-
data-security/>.
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