CRISIS MANAGEMENT IN TOURISM

SOURCES

Hospitality Think Tank. Hospitality-on.com. Overview on the Impact of 9-11 on America's

Hotel Industry, 19th Nov. 2015. Web. 20 Apr.

2016.http://hospitality-on.com/en/news/2015/11/19/overview-of-the-impact-of-9-11-on-americas-hotel-industry/

National September 11 Memorial & Museum. 9-11 Memorial. September 11th Attack

Timeline, N.D. Web. 16 Apr. 2016. http://www.timeline.911memorial.org

Pearson. Crisis and Risk Management in Tourism. Case Study 1, N.D. Web. 25 Apr. 2016.

<http://wps.pearsoned.co.uk/ema_uk_he_cooper_essen_tour_1/214/54938/14064199.cw/content/index.html>

Reference for Business. Referenceforbusiness.com. The Ritz Carlton Hotel Company, L.L.C.,

N.D. Web. 20 Apr. 2016.http://www.referenceforbusiness.com/history/Th-Ul/The-Ritz-Carlton-Hotel-Company-L-L-C.html

University of Alberta. Office of Emergency Management. The Four R's, N.D. Web. 25 Apr.

2016. <http://www.oem.ualberta.ca/en/Emergency Plans/The Four Rs.aspx>.

Reduction

Initial Reaction

Also known as Mitigation, "This is the process by which we try to prevent crisis from ever occurring. Reduction is the most valuable part of Emergency Management." (University of Alberta 2016)

• Of course we cannot prevent outside events from occuring around us; rather, this is our focus on preventing what we can control.
• Step 1: Identify initial risks and level of crisis. (9/11 would be the highest level, given its immediate location)
• Step 2: Know our property's strengths and weaknesses during different types of crisis
• Step 3: Most secure Check-In protocol: careful examination of Photo I.D., Credit card, and Reservation.
• Step 4: Instillment of overall Employee awareness. Any suspicious activity should be questioned and reported.

• Security: the Immediate Priority
• Placed the entire property on lockdown
• Security surveilled the property on foot for guests and suspicious activity before retreating inside and securing the perimeter.
• Security heightened in Public areas
• Security placed at all exits to ensure Guest and Employee safety
• Except heightened security, we maintained normal business operations (of course nobody could check in or out, or exit the property) in efforts to keep guests as calm as they were able to be.
• The lockdown was lifted around 4:00 PM. Those who managed to arrive were allowed to check in. However, all flights remained grounded. For guests that were forced to extend their stay further, their nights were comped.

Initial Reaction

Recommendations for Crisis in the Future

Readiness

Recalling our Initial Reaction to the destruction of the Pentagon, we feared the White House was next

The UNWTO has implemented a “crisis management system that will reduce the impact of, and assist in the recovery from crises.” This system includes the “Four R’s” of Crisis: (Pearson 2016)

Also known as Preparedness, this is the process by which we make plans and practice for emergencies. (Univeristy of Alberta 2016)

• Second step is the most labor intensive, and involves developing a plan and tactics to respond to the crisis.
• With recent employee training, staff should be well prepared to respond to the crisis in occurance. (Training ranges from nearby bombing, bomb threats, explosions, suicide bomb attacks, robberies, active shooters, natural disaster, death on the property)
• Extra Training module for PBX in which they are trained to utilize media to communicate with the property as the crisis is occuring.
• Given Ritz Carlton's clientele, employees training highlights the importance of remaining calm and still responding to guests' needs in the most appropriate way
• Have specific marketing strategies already outlined and ready to be implemented in the event that a tragedy results in reduced occupancy.

• Communication:
• PBX in constant contact with employees with updates as they became available.
• Employees appeared calm in order to keep guests calm.
• Executives normally behind the scenes were dispersed throughout the hotel to prevent emotions from running high,offering guests and employees updates on the situation.
• Food and beverage operations continued in order to maintain sense of normalcy for guests.

"1. Reduction: Initial Identification of potential risks and crises, also strengths and weaknesses of organization or destination

2. Readiness: Developing a plan of responses and tactics, and continually reassess and possibly modify

3. Response: Strong leadership is needed, team often put together to implement plan immediately. Response is based on damage limitation.

4. Recovery: The speed at which normal operations resume and pre-crisis level of business is reached.”

Initial Reaction

Post Crisis Plan: September-December

Future Crisis Management Plan

(Pearson 2016)

Response

Future Crisis Management

This step is implemented when the physical crisis takes place and involves the operational response. The response should focus on safety for all people and damage limitation as well as proper communication. (Univeristy of Alberta 2016)

• Head of Security should assemble their team immediately, and have back up reinforcement prepared.
• Law enforcement should be notified, given the situation.
• Employees should follow proper crisis management protocol
• PBX should maintain communication with law enforcement if necessary
• Follow lockdown procedures carefully and assess when it is safe to return to normal operations
• When handling guest requests during a crisis, employees must calmly deliver the scripted crisis statement to ensure uniform understanding. (Whether the guest is aware of the crisis or not)

Setting:

“Renáta Kosová and Cathy A. Enz (Cornell Hospitality Journal) found that the occupancy rate is the indicator that experienced the most flagrant drop after the attacks, bringing the Revenue per available room (RevPAR) with it.” (Hospitality Think Tank 2015)

World Tourism Organization found that the last four months of the 2001 saw an 11% drop in travelers worldwide, -24% in the Americas in fact. (Hospitality Think Tank 2015)

September 11, 2001

Washington DC, USA

• At approximetely 9:37 AM, in part of an organized terror attack on the US, a third plane in the series of four hijacked planes crashed into the U.S. Pentagon building, killing hundreds instantly. The Pentagon's north side collapses in heavy smoke.
• 9:45 AM: the White House and the Capital building are evacuated. Panic ensues, staying indoors recommended by News outlets.
• 12:16 PM: all flights within the US are grounded until further notice.

Recovery

Ritz Carlton Washington D.C. developed the following Future Crisis Management Plan in order to prepare for a similar Crisis as the 9/11 tragedy. This specialized plan utilizes the 4 "R's" in order to prevent loss of RevPAR and reduced occupancy rate, in the event that a crisis occur in which an outside event out of our control could effect our property directly.

September 11, 2001

The Ritz Carlton

1150 22nd St NW, Washington, DC

20037, USA

Distance (by car)

to Pentagon: 10 min.

to White House: 9 min.

Timeline: (911 Memorial.org 2016)

This is the phase of the emergency where we restore what has been lost, and return to normal. This phase lasts the longest. (Univeristy of Alberta 2016)

• Immediately after the Crisis ends, ensure guests depart the property content with the way the matter was handled. This means empathizing, and offering compensation when appropriate.
• When an incident ends, begin collecting new lessons to be learned.
• We will know we handled the crisis correctly if employee's mental state is stable, guests and employees felt safe, security felt able and ready, and if all the proper financial and marketing strategies were followed out if deemed necesary, given the crisis.

Post Crisis Plan: September-December

“The chain's occupancy rate fell from 77.5 percent in 2000 to 66.9 percent in 2001.” (Reference for Business 2016)

Presented by General Managers Antonina Henry and Marissa Thompson

• Our property certianly felt the impact of these numbers. We developed a specialized plan for the duration of the year in order to maintain business, despite this unforeseeable and tragic event.
• Communications: Ritz Carlton Washington D.C. released a special statement acknowlging the tragedy of 9/11 and the continuation of normal business.

CRISIS MANAGEMENT IN TOURISM

Post Crisis Plan

• Financially:
• To compensate for lack of RevPAR, we placed a banner outside both of our Restaurants, Westend Bistro and Quadrant, hoping to draw in non-guests for Happy Hour and Business lunch.
• We extensively reviewed our Financial position as of now and the future with Accounting department biweekly, preparing for a decline in Occupancy and Revenues overall.
• Marketing:
• Both our home address and e-mail mailing lists recieved notice of our property's promotion:

Visit Our Nation's Capital: Buy 3 nights, recieve the 4th night half-off. Valid until December 31, 2001

• Security:
• Until October 31, 2001: 2 extra security employees per shift: 1 in surveillance, 1 in public areas
• practiced evacuation drills and lockdown drills
• employee safety meetings monthly
• creation of Safety committee