CRISIS MANAGEMENT IN HOSPITALITY INDUSTRY

We live in ever-changing times, where consumers are increasingly aware, lawyers are ever

more litigious and the media increasingly willing to expose any weakness in a hospitality

organisation or tourist destination. 

A company or region in the midst of a crisis cannot completely control these

factors. However, sufficient preparation and effective management can take the edge off the

above factors. Companies and destinations are now realising that they not only have a moral

obligation, but also may need to take a legal stance to be prepared to cope with incidents that

involve their clients. 

Planning, though critical, is not the only component. Training, conducting drills, testing

procedures and providing additional external resources are other important functions. By

doing the above, organisations can go a long way to emerging from such incidents with their

reputations and/or corporate image intact. The lessons learned must be now used to prepare

hospitality industry - for future crises. 

In essence, the following “components” are required in order to handle any crisis situation

effectively:

Leadership (crisis coordination);

Adequate emergency response (ambulance/paramedics/medical support);

Victim identification;

Media relations;

Family assistance;

Information dissemination;

Internal and external communications.

An effective emergency response and good family assistance will reduce the frustrations that

many people experience when caught up in the aftermath of a major incident. Besides going a

long way to ensuring effective crisis management, it is also a humane, caring and

compassionate way to respond.

When your crisis occurs, the hardest part of dealing with it can involve answering the public

call for information - as personified by a TV correspondent or newspaper reporter who shows

up on your doorstep or on your telephone line to get the story. 

How well you respond depends on how well you are prepared.

While the existence of some of the above components may be based on the assumption of the

pre-existence of a structured and experienced emergency services (police, fire and

ambulance), this would be an unrealistic expectation. in many situations.

However, there are still some basic steps that governments/regions can look at in order to

enhance their level of preparedness. This involves the triad of: 

Planning (developing written plans); 

Training (selecting and training the initial crisis responders); and

Regular rehearsals (conducting “major incident” exercises).

Creating awareness amongst the industry;

Organising training sessions for all stakeholders; and

Communicating their efforts to the consumer.

The key to success is intensive training, although in-depth consultations towards establishing

the exact needs of the participants is needed to tailor the final curricula to local, regional and

inter-regional training activities.

The focus of the training sessions must be on senior and intermediate levels of management,

with the aim that, by the end of the course, all those attending will be knowledgeable about

the following :

Stage 1 : Before the Crisis 

What constitutes a real crisis; 

Why crisis management is necessary; 

Assessing potential crisis issues; 

Crisis-management team responsibilities; 

Setting up the emergency communication system; and 

Major elements of crisis management planning. 

Stage 2 : During and after the Crisis 

Structuring the media centre; 

Designating spokespersons;

Preparing “message points”;

Interview techniques and guidelines;

Controlling the story; and

Starting the “back-to-normal” plans.

In almost every instance of successful response to a crisis, management and response

activities consisting of sound operating execution, coupled with superior communications,

predominate. 

Operational response is essential – it’s the one that saves lives, property and other assets. The

ability to communicate is no less important - it’s the one that saves the business.

The simple fact is: perception is reality, and public perception of your company's reaction to

a crisis is as important as your operating response. 

There are no clear boundaries with any crisis. There is rarely a single moment when one can

say an incident or issue has transformed into a crisis. Crisis-management experts recommend

adopting a low threshold when defining a crisis, erring on the side of caution and assuming

that a small episode can escalate into a crisis at warp speed.

The repercussions and impact of crises in tourism is manifested across a series of

stakeholders. To avert mismanagement of crises and its consequences, organisations and

destinations need to enhance their capacity to understand and respond to crisis situations. 

We all need to sharpen our skills at predicting and preventing such situations. 

CRISIS HANDLING MANUAL

INTRODUCTION

The true success during a crisis does not lie in doing correct things but it is the successful

strategy during a crisis that becomes the correct thing. More than technical correctness it is

the presence of mind and correct application coupled with damage restricting execution that

plays a critical role in the crisis situation.

Crisis may be of many types- Natural, man made, accidental etc and it is the forte’ that one

holds in such times that makes him stand out from the others. After the massacre at Taj, it

can be said that hotels, especially in India, attract a lot of attention from domestic and

International media since their vulnerability was exposed at such times.

Let us pray that something like what happened at Taj never happens but also equip ourselves

for the same such that it is not able to scale up to the same magnitude.

The true mark of a hotel, like a gentleman, lies n its chivalry, the way it serves and treats

others and the priority it gives to its guests over self. Let this come from within my friends.

Welcome to the family.

This manual is to equip you all to fight such times of crisis and come together as one force so

that in the race for service we aren’t left behind.

Director

Mr. Siddharth Vora

ACCIDENTS DUE TO FIRE

Causes:

The major causes of fires in hotels are smoking materials, electrical, cooking fires and arson.

Safety measures:

Smoke detectors in every room save occupant’s lives. If a fire starts in a guest room,

the occupant has, on average, two minutes to get out alive. A smoke detector will give

the necessary warning to facilitate escape.

Self-closing doors (fire doors, stairwell doors) save lives by confining the smoke,

flames and heat and leaving evacuation routes clear. It is imperative that these doors

are not blocked or propped open.

Sprinklers work to limit fire spread to the room of fire origin. 96% of fires in which

automatic sprinklers are present are extinguished or contained by three or fewer

sprinkler heads.

General Fire Prevention Tips

Do not plug too many appliances into an electrical outlet.

Make sure that combustibles are not too close to heaters, stoves and fireplaces.

Never smoke in bed or soft furniture.

Do not use damaged or frayed electrical cords or extension cords.

Response to fire:

Have a fire emergency plan.

Become familiar with your facility’s fire and life safety systems.

Treat every alarm as though it is a real emergency, even if the initial source is

unknown.

Remember your emergency number

Do not use elevators.

If trapped, create an area of refuge.

Use wet cloth to stuff around cracks in doors and seal up vents to protect against

smoke.

Stay low under smoke. The freshest air is near the floor.

Use fire extinguishers.

If a kettle of fat catches fire, pour on sand, but never water. As a general rule,

extinguish a flame by covering it rather than by throwing on water.

If clothing catches on fire, wrap a rug or any large woollen article tightly around the

body. To rush into the air is fatal.

If a towel or apron catches fire, roll it up quickly before the blaze spreads. This can be

done without injury to the hands.

NATURAL CALAMITITES

Safety measures:

In times of a natural calamity always remember the life of your guests and colleagues

are more important than any other monetary loss.

During the mock drill each employee will also be trained regarding the topography of

the area so that each one is aware of the routes to be avoided in times of a crisis.

Especially during floods, the low lying areas should be avoided.

The first aid measures should be learnt by each and every employee so that before the

ambulances arrive the employees can provide initial treatment so that we can save the

extent of loss of life.

The battery operated flash light and radio would always be available at the Reception.

So the employees should use the same.

Always keep your mobile phones charged and active so that communication is not

hampered at such times.

Also, always note that as much as you need the resources there are others striving for

the same in times of natural calamities. So always try and minimize the use so that it

can be used by maximum number of people.

The emergency exits should be known by each and every employee, irrespective of

hierarchy,

Always remember: Preparedness reduces risk.

Specific natural calamities:

FLOODS

Remember water is a good conductor of electricity so always switch off and unplug

all electrical devices so that any casualty on account of electric current can be averted.

During a flood situation, always try and move all your guests to the topmost floors of

the hotel. Avoid contact with water as much as possible so that any water borne

diseases are avoided.

Do not let the guests consume any food that has been in contact with water.

Always provide the guests with packed foods until cleared by the authorities.

The electric mains should be switched off to avoid crisis.

EARTHQUAKE

In times of an earthquake the key lies in evacuating the building as soon as possible.

Try and check the rooms and inform the guests to leave immediately without an

delays.

Guide the guests to evacuate the hotel but ensure that no panic is created. Panic leads

to even more troublesome situations.

Do not use the elevator during an earthquake. Try and save as many lives as possible

in times of such crisis. The true mark of hospitality lies in the way a guest is served

and the calm he feels during a crisis. The more the panic the more the pain.

CYCLONES

In such times always stay updated with the Meteorological Department regarding the

cyclone and the possibility of further expected harsh winds.

Communications facilities are likely to get disrupted, (both land and

telecommunications) hence make immediate arrangements for satellite phones,

mobile phones.

Medicines ( Painkiller, Surgical cotton and Bandage Materials, Orthopedic Material

etc.) Dry cell Batteries / Torches, Solar operated Equipments such as Lights, Pumps &

other related equipments etc should be in good stock.

MAN-MADE CRISIS

Another form of crisis which can affect the Hospitality Industry is Man Made crisis. Man

made crisis can be in the form of riots, attack by a local political party or it can be in the form

of a terror attack, which unfortunately has become a trend nowadays and there are

innumerable cases which have happened in the last few years. By taking a few preventive

measures the hotels can reduce the extent of damage if not completely stop the attack. By

doing this they can ensure the safety of their guests which is the most important thing in the

Hospitality Industry.

1) Limiting Access Points – Hotels have multiple access points such as entrances for

guests at the front, for the staff and the supplies at the rear, from car parks and

restaurants at the shops with street access. The number of access points should be

reduced to 2 or 3 and the movement of people should be regulated through CCTV

cameras placed at such points.

2) Perimeter Security System – A three-tier system should be put in place.

- At the entrance the boots of the cars should be checked and mirrors should be put

under the car chassis to detect explosives.

- Vehicles should not be allowed beyond a certain point. See to it that they don’t land

up right in front of the entrance.

- CCTV’s should be installed in all public areas especially at the alighting point and at

the entrance door.

3) Shrubs and Vines – Heavy shrubs and vines should preferably be kept away from the

hotel building and they should be trimmed close to the ground so that bombs and

explosives cannot be concealed in them.

4) Guest Baggage and Hotel Supplies check – Baggage should be taken away from the

lobby and passed through baggage scanners which can detect the shape and density of

the objects with a high degree of clarity. Also all hotel supplies should be put through

scanners and supplies should be sourced from approved and established vendors only.

5) Guest Profiling – Hotels should have a guest profiling system in order to zero in on

people whose names figure in the Ministry of Home affairs wanted list.

6) Lift Usage – The practice of people entering the lobby and taking the lift to any floor

should be stopped. The lifts shall be programmed in such a way that the lift will let

them get out only on the floor where there room is located by swiping their room card

in the lift.

7) Trash Management – An explosive device can be easily hidden in the trash. Hence it

is essential to dispose the trash at regular intervals.

8) Room Key Scanners – The US dept of Energy through its Oak Ridge National Labs

has developed Mass Spectrometry Scanners which can analyze upto 1000 room

access cards in an hour. These can detect even a billionth of a gram of explosives.

Even if a tinge of explosive has been touched by the guest it would alert the staff

immediately and information would be flashed to security agencies.

9) Snifex – Snifex is a small handheld device with an Ariel. The Ariel starts pointing to

the direction where explosive is kept from a distance of a few meters.

10) Liaison with local administration – The person responsible for crisis management in

hotels must coordinate closely with the local administration and police authorities for

urgent deployment of the Rapid Action Force in any crisis situation.

11) Train and Motivate the Employees – Hotels must have a plan of action ready in case

of an emergency. Staff should be trained by mock drills in evacuations to help people

in terror situations. The hotel should motivate the employees in order to respond

quickly in case of a terrorist attack.

12) Employees will not speak to the media – Employees should not make any statements

or give any information to the media. Only the spokesperson will be allowed to do so.

The spokesperson has to keep the following things in mind while making any

statements.

- Communicate as soon as possible

- Always speak the truth and if you don’t kow anything then say so.

- Tell the media they will be given more information on an ongoing basis.

13) Guest comes first – The thing that separates the best hotels is the way they treat their

customers. The hotels need to instill that feeling in the employees that no matter what,

the safety and well being of a guest is their top most priority. Guest always comes

before self. This was the reason that a lot of people were saved in the Taj attack as

their employees helped the guest in evacuating the building by risking their lives.

PR DO’S AND DONT’S

DO’s

Consult your crisis response manual

Designate one person to respond to the press.

Tell the truth and tell it fast.

Never ignore the situation by not responding to queries.

Determine who among public safety officials (hospitals, police, fire department etc.)

are to be contacted and direct enquiries in that area to the appropriate person.

If media seeks access to the hotel premises - subject to approval from local authorities

- designate a fixed spot such as a meeting room as the venue for all interactions.

Never talk "off the record".

Try and develop a prepared statement - however brief - to hand out to the media.

DONT’s

Saying "No Comment” which is interpreted as into "Guilty as charged” by the media

It simply convinces them there is something that needs to be investigated more

thoroughly. 

Lying: All decent media relationships are based on mutual trust and respect. If you are

ever tempted to lie to a reporter, stop and consider the consequences

Losing Your Temper 

Recovery marketing

Recovery marketing is extremely important after any crisis as your guests may fear visiting

the place or there may be negative perception about your services. So it is important to

reinforce trust and security in the minds of the people. Recovery marketing can help in a big

way in rebuilding the brand image and increasing the guest numbers and ultimately the

revenues. It can help you from losing customers to competitors and assist in adding new ones.

Recovery marketing can be done in the following manner:

Step 1: Prime messages

We are open for business and tourists are welcome and wanted.

Provide incentives for visiting the place -Value-added product. Packages

packed with extra product. Inclusions of meals, sightseeing, entry to specific

attractions, A thank you for coming gift ,Special welcome, recognition and

memento for having visited

Solidarity marketing – wherein you seek support and solidarity from your

customers

Step 2: Setting out the facts

Our destination / hotel/ tour /attraction/flights are operating.

Outline restrictions, closures and limitations.

Outline improvements, and changes.

Step 3: Complementary alliances with principals

Joint arrangements with hoteliers, resorts, restaurants, tourism attractions, land

tours and operators, air links and land transport.

Joint or "club advertising" and promotion.

Step 4: Restoring Confidence in Principal Source Markets

Seek eye witness testimonials from opinion leaders in key source markets.

Ensure travel industry stakeholders are kept fully informed of positive

developments.

Step 5: Re-imaging your business and the destination

A crisis presents an opportunity to put a new face to your enterprise.

Re-vamp all your advertising and imagining.

Highlight features and benefits you may have ignored or under-emphasised in the

past.

Step 6: reporting and monitoring progress

Then and now: Comparing the destination and your business at the time of the disaster

to that of the advanced recovery stage.

Publicising changes and advancements made at regular intervals.

Conducting, commissioning and making use of market research amongst visitors,

prospective visitors and travel industry partners.

Promoting to stakeholders and media how tourism has revitalized a destination from

devastation to recovery.