How To Protect Hotel Businesses From Theft

Theft can be a major problem for hotels. Any losses may seem small at first, but the costs can quickly add up.

In this post we will explore the most common types of hotel theft, before discussing how you can protect your hotel business from theft.

The Most Common Types of Hotel Theft

• Guest theft: Including stealing towels, dressing gowns, toiletries, and electronics from rooms, and taking home glasses and cutlery from the hotel’s bar or restaurant.
• Housekeeping theft: Like guests, housekeepers may occasionally lift items from hotel rooms, including towels, linens, toiletries, and cleaning supplies.
• Internal theft: This can include front desk staff engaging in fraudulent behaviour, including skimming cash, misusing credit card systems, or even stealing guests’ valuables while handling their luggage.

What is The Impact of Hotel Theft?

Theft can impact many areas of your hotel, including:

• Loss of revenue
  You will have to pay to replace every lost item, which can boost your operating costs while cutting into your profits.
• Reduced efficiency
  At the same time, any missing item can disrupt your housekeeping and guest services, leading to reduced efficiency and increased delays.
• Low staff morale
  Over time, theft can take its toll on staff morale, too. If things keep going missing, many members of staff will find it increasingly difficult to do their jobs. And if there is evidence of internal theft, it could lead to a culture of tension and distrust.
• Poor customer experience
  And of course, if any guests are victims of theft while staying at your hotel, it can lead to bad reviews, a poor reputation, and potentially legal action.

How Common is Hotel Theft?

Hotel theft is so common that it is no exaggeration to say that every hotel owner will have experienced it at some point.

According to one survey, 87% of guests admit they have taken something from a hotel at some point, and 26%  admit that they always steal from hotels.

Further hotel crime statistics suggest that hotels lose an estimated £74m a year to guest theft. Also, around 25% of hotel robberies are the result of internal theft, or of hotel employees colluding with criminals.

And on top of all this, just like any other businesses, hotels these days must contend with the risks of cybercrime.

5 Ways to Protect Your Hotel Business From Theft

1. Get Your Staff On Your Side

Talk to your staff about the impact of theft, about how it makes life harder for everyone. Train your staff to spot the signs of all forms of theft, and aim to create an open culture of trust in which staff feel they can safely raise concerns while depending on your full support.

You could also make it clear that you take a zero tolerance approach to theft. Hopefully, you will never have to act on this. But if your staff are familiar with your policies, then they may be less tempted to lift cash or items.

2. Ensure Better Oversight of Key Operations

You could introduce routine room checks and post-cleaning inspections to look out for any discrepancies. Make sure everyone sticks to the same housekeeping schedule, so that it will be clear exactly who may have been involved should you ever suspect that theft has taken place.

Try to minimise the number of employees who can access financial systems and guest valuables, and implement rigorous cash-handling policies while ensuring you reconcile all tills every day. You could also conduct periodic audits on all inventory and cash handling systems, which will make it clear to everyone that any discrepancies will be discovered before long.

3. Encourage Your Guests To Be Honest

There is not a lot you can do to prevent a guest from stealing a towel or a hairdryer from their rooms, and you cannot exactly perform random luggage searches at checkout. But you could try to appeal to your guests’ better natures.

Place signage in your rooms letting guests know that, should they wish to take home towels or dressing gowns etc., then they are for sale at reception. This subtle reminder that these things cost money might deter many guests from packing items in their bags.

4. Invest in Technology

Ensure you have sufficient CCTV coverage of any areas where serious theft could take place, including any counter with a till, any area where cash is handled, and your storerooms.

You could also invest in a Property Management System (PMS), which can help you track your stock and inventory, along with ongoing tasks such as cleaning, housekeeping, and cash flow.

Also, technology is your hotel’s main line of defence against cybercrime. Read our full guide to protecting your hotel against cybercrime.

5. Get the Tailored Hotel Insurance You Need

Specialist hotel insurance can cover your hotel against many of the risks you will face, including the growing risks of cybercrime.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance brokers. No matter if you are running a large or a small hotel, we can tailor a niche insurance package to ensure you are covered for all risks at the best possible price.

Find out how we can help you get a bespoke and cost-effective hotel insurance policy today.