Hospitality Facilities Management Case Study - Business Finance
6 pages excluding citationTimes New Roman 12ptsYour case study must focus on a specific topic, highlight the relevant literature that exists on that topic, and examine the ways in which the hospitality and tourism industry prepares for and responds to these situations (e.g. pandemics, CSR/green initiatives, ADA compliance, etc.). Your goal is to identify a hospitality or tourism organization that demonstrates best practices in your area of interest. Case Studies may be compiled from field research, published sources and/or generalized experience. Your Case Study should follow the outlined structure and expectations to receive full credit.
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case study
Hurricane Harvey Makes Waves for Tourism In
Texas: A Case Study
By Sean Stott, Lisa Cain and Miranda Kitterlin-Lynch
Introduction
Recent history has seen a spike in both the occurrence and strength
of natural disasters. For example, since January of 2017, Rigopiano, Italy
experienced an avalanche, Mocoa, Colombia and Democratic Republic of
the Congo experienced major landslides, Sri Lanka, Bangladesh, India, and
Nepal all experienced severe flooding and landslides, Afghanistan and
Pakistan experienced avalanches that destroyed over 300 homes, China
experienced severe floods that displaced over 1 million people, Southwest and Central Mexico experienced earthquakes that measured 8.1 and
authors concluded that communication and planning mechanisms are
necessary to engage all stakeholders in planning and recovery (Pyke et al.,
2016). Therefore, this case also sought to understand how management
at the Stinson Suites responded to the devastation that occurred and that
was broadcast to the world. Identifying the best practices for preventative
maintenance as well as reactionary measures taken by this firm may benefit other tourism organizations, the economy of the respective locations,
and the tourists wishing to visit these locations.
This case starts by describing the Stinson Suites and how the
7.1 at their epicenters respectively and killed over 230 people (Jacobo,
management and staff prepared for the Hurricane and the aftermath.
Winsor, & Nestel, 2017), California and Pedrogao Grande, Portugal experi-
It then examines the impact that the hurricane had on the property
enced wildfires that caused major devastation, and the Eastern Caribbean,
during and immediately following the storm. Finally, it examines
Florida, and Texas experienced hurricanes that caused billions in destruc-
the ways in which the management at Stinson Suites marketed and
tion (Natural Disasters Association News, 2017). While this list is by no
reintroduced the hotel after the negative publicity surrounding the
means exhaustive, it demonstrates the frequency with which the world is
devastation caused by Hurricane Harvey.
impacted by natural disasters. In fact, recent scholars have asserted that
Stinson Suites
the number of catastrophes around the world and the corresponding
economic loss has increased 3-fold (Tsai & Chen, 2011).
Hurricane Harvey specifically has been documented as one of the
most destructive and costly hurricanes in recorded history, with damage
estimates exceeding $75B. The storm was a category 4 hurricane with
winds exceeding 130mph and a diameter of 280 miles when it made
landfall in Texas in August of 2017, and it proceeded to dump 27 trillion
gallons of rain across the state (Hurricane Harvey Aftermath, 2018). Because having an emergency plan is touted as the first step to take before
a disaster happens (Gunter, 2005), this case study sought to understand
how one specific hospitality organization prepared for this storm. According to tourism researchers, tourism interests are subject to prolonged
reduction of visitation, damage to critical infrastructure, and negative
media attention, and can resonate many years after a disaster happens
(Orchiston, 2013). Orchiston (2013) asserts that smaller hospitality organizations tend to be reactionary and larger organizations tend to be more
proactive. Additional scholars have demonstrated that small businesses
are less likely to be covered by insurance and there may be poor communication between tourism and governance bodies (Pyke, De Lacy, Law,
& Jiang, 2016). A call for improved information for visitors about safety
and risk, better planning and risk management was suggested and the
Sean Stott, Lisa Cain and Miranda Kitterlin-Lynch are all affilitiated
with Florida International University.
Journal of Hospitality & Tourism Cases
Stinson Suites is a four-star, extended stay property located in coastal
Texas. The property caters mostly to business travelers. In addition to
offering traditional extended stay amenities (free wifi, complimentary
breakfast, fitness facilities, a pool), the property also boasts meeting and
convention space. Because the property is located just outside of Houston, it is prone to hurricanes and flooding, and was impacted by Hurricane
Harvey as so many others in the state of Texas were. For the purpose of
this study, the operations manager, Ms. Juliet Young, was interviewed
regarding her experience during Hurricane Harvey along with its aftereffects. Ms. Young has been working in the hospitality industry since April
2012 and has been in a managerial position at Stinson Suites for three
years. As an operations manager, she works on average 50 to 70 hours a
week. During the interview, the impacts of natural disasters on tourism
and travel along with how her hotel prepared her for this disaster were
discussed. In addition, this study questioned how her specific hotel marketed immediately after the hurricane now and in the long term.
The Dilemma
There are several issues that the Stinson Suites faced when preparing for and responding to Hurricane Harvey. The first issue they had
to tackle was their disaster preparedness plan and the protocol they
had to follow. Disaster preparedness is essential to industry operations,
and may include action plans, training, and supply stocking. However,
81
properties often forget about disaster plans due to outdated plans or a
Drabek, 1992; Murphy & Bayley, 1989). The amount of time it takes for the
change in management. Researchers have encouraged companies to
industry to rebound relies heavily upon the marketing techniques that the
update plans yearly and to train employees accordingly (Arlotta, 2017).
city and the facilities in that city are able to put forth. Research has shown
It is important for the property management to read and understand
that as little as 3\% of hospitality organizations actually experience a posi-
the corporate plans and policies so as to adequately prepare for the
tive outcome from unexpected issues and disasters (Kwortnik, 2005). The
storm and to anticipate reactions to the myriad issues that may arise
reintroduction of an impacted destination plays a huge role in the survival
from a storm of that magnitude. These issues may include everything
of a property post-disaster, and this can take several years. How the Stin-
from loss of power to contaminated water to structural damage. Antici-
son Suites will manage their brand and reputation and advertise their
pating each of these scenarios and having the plans in place to guide
ability to function after the storm will prove pivotal for success.
the employees would be imperative for present and future success.
The second dilemma the Stinson Suites faces are related to human resource management. Understanding how to properly staff the
property has implications for the employees who do and do not have
to work during this time of crisis. The company needs to consider how
to staff the property properly to ensure guest and property safety.
These decisions can ensure or detract from the well-being of the clientele, the staff, and the physical property.
The third dilemma concerns the corporate social responsibility of
the firm. There is always a delicate line to tow when partaking in measures of corporate social responsibility. While efforts to help citizens or
the environment may come from a place of altruism, they may also be
viewed as advantageous to the organization. “Disaster capitalism” is
a trend that highlights the firm in a negative light for profiting on the
misfortune of others (Black, 2005). While the Stinson Suites may want
to open their doors to those in need, they are still an operating business and must determine at what cost they will charge people to stay
on their property. They must also determine whether or not this price
is seen as ‘fair’ or ‘gauging.’
Finally, whenever a city faces devastation, be it natural or through
acts of terrorism, there is always trepidation and fear that surround visiting
that destination thereafter. The result is that tourism in that area declines
(Khazai, Mahdavian, & Platt, 2018). Scholars have demonstrated that this
is due to negative marketing on the part of the media (Cassedy, 1991;
Preparing for the Storm and its Aftermath
In the event of a natural disaster, prevention and response procedures must be in place to ensure the safety of both guests and employees.
The guests will inherently look to the staff for guidance and peace when
natural disasters are imminent and after a disaster strikes, so providing
the staff with the tools to succeed is vital for future success and repeat
business after a catastrophe. The Stinson Suites in coastal Texas requires
its employees to take a hurricane preparedness class that teaches them
how identify necessary supplies, and to where and how to stock those
supplies. In addition, the class provides that staff with a booklet of information regarding staff scheduling including the amount of staff needed
to operate the property during the hurricane and the number and type of
staff needed to relieve the disaster staff once it was over.
As the operations manager, Young knew she would have to be there
during the hurricane but said, “the good thing about hurricanes is you
have a lot of time to prepare.” The hospitality industry, according to Ms.
Young, “came together during Hurricane Harvey to open their hotels to
FEMA guests who had lost their homes. This included already homeless
individuals along with all kinds of people: wealth, middle class, and very
poor who did not know where to go or what to do.” Because Stinson
Suites is part of a larger branded hotel group, they have response and outreach strategies in place to assist their properties. The hotel group takes
pride in providing relief for their communities in times of disasters.
Table 1
Facility Preparedness Checklist
Consider Safety Hazards
Ensure your staff can safely turn off electricity in damaged areas of the property and that the power
can return without warning.
Examine Exterior Doors and Windows
Ensure handles, locks, and weather strips are working correctly. To prevent further damage, if any
doors or windows need repair, they should be boarded up or repaired immediately.
Disinfect contaminated surfaces.
Everything must be disinfected post disaster as it can create problems down the road. All contaminated items must be properly disposed of while making sure to not contaminate the surrounding area.
Wall cavities, studs, and other fixtures must also be thoroughly disinfected and cleaned.
Restore plumbing and water lines
To prevent backflow and clogs, hire a professional to clear the pipes to limit risk of bathroom closures
and odor problems.
Deep clean floors
Deep cleaning will extract soil and residue along with any remaining odors from flood water.
(Is Your Facility Prepared, 2015)
82
Volume 8, Number 1
The senior director of marketing for Cincinnati-based Cintas Corp
2018, the hotel was still hosting guests who were displaced from the hur-
stated that being unprepared for an emergency coupled with the lack
ricane. Natural disasters can have a variety of effects on the Hospitality
of expectation that something could happen could be detrimental to
industry. While it is devastating to all from a humanitarian standpoint, for
the success of a business (Is Your Facility Prepared, 2015). Therefore,
some it can be devastating to the operation as well, while for others it is
reactionary steps are provided to help lessen the extent of the dam-
an opportunity to provide aid and relief.
age after a disaster (see Table 1). The items listed are only some of the
Because tourists will continue to travel despite natural disasters, it
ways to respond after a natural disaster. Additionally, it is important to
is the job of the hospitality industry to reintroduce an impacted destina-
be prepared and safe when assessing the damage. No one can prevent
tion to the consumer as a viable destination for tourists. This process
a natural disaster, but with the proper procedures in place for before,
can take several years depending on how extensive the damage is, how
during, and after a natural disaster, it is easier to mitigate the damage
quickly they can return to business-ready, and how strong of a market-
and ensure the safety of guests and employees.
ing message they advertise (Durocher, 1994). Based on the research
Hurricane Harvey Hits Stinson Suites
performed for this case study, it appeared that the biggest issue experi-
During Hurricane Harvey, Ms. Young was forced to lead and operate the Stinson Suites hotel. This turned out to be a solo endeavor
that lasted five days straight. To make matters more challenging,
she only had four other staff members to assist her in operating this
property – two housekeepers, one food and beverage attendant, and
one night auditor. Young worked sixteen-hour shifts and switched
off with the night auditor in an attempt to relieve some pressure off
herself. Towards the fifth day, they began running out of food as they
had people coming in who had not eaten in over twenty-four hours;
however, she was able to get to the grocery store on the fifth day. Because “there was no bread, no milk, but plenty of people,” Young and
her staff stocked up on frozen food as that was the only food left. They
were fortunate that they had not lost power.
In fact, the hotel and its owners, employees and guests did not experience the same magnitude of damage as many other properties did.
This was something that Ms. Young related she felt very lucky to have
avoided. Additionally, this allowed them provide relief for their community. Hurricane Harvey was Young’s first hurricane experience, as she had
been living and working in the Midwest before moving to Texas. Prior
to this storm, Young had only ever experienced tornados, which never
reached the destructive magnitude that her first hurricane did.
Marketing and Reintroduction
When discussing how natural disasters affect travel and tourism, she
stated, “After the hurricane in Houston, there were less travelers to the
city.” However, this did not impact the occupancy of the hotel as they were
full with FEMA guests (those who lost their homes to flooding). Because
of the high occupancy rates, the impact of how this affected tourism was
not entirely apparent to Ms. Young. While it might be expected that the
hotel would lose an extraordinary amount of travel and tourism business
due to natural disaster, for hotels providing relief to the hurricane’s victims
and aids, the rate of business may be comparable or even greater to than
before the disaster. Stinson Suites aided in relief and therefore, did not
experience the same drop in business that many other properties might
have experienced. In fact, at the time the study was written in February
Journal of Hospitality & Tourism Cases
enced by these disaster-affected destinations was misinformation from
media outlets that portrayed their destinations as unlivable (images
of flooding peppered the news) and still devastated. Post Hurricane
Katrina, New Orleans struggled to attract tourists as many people remained unaware of the city’s condition. A report from January 2008 in
which Jim Funk, chief executive of the Louisiana Restaurant Association,
was interviewed, he stated that despite their marketing efforts, tourists still believed they were under water (Walkup, 2008). Considering
Hurricane Katrina made landfall in August of 2005, the impact of the
hurricane’s damage to the reputation of the city was still being felt 2.5
years later. According to visitation records in 2004, New Orleans had
reached an all-time high of 10.1 million visitors. However, that number
plummeted to 3.6 million in 2006 and was sustained at 7 million visitors
per year for many years thereafter. It wasn’t until 2016 that New Orleans
finally bounced back from the devastation to its tourism industry and
logged a record 10.4 million visitors (New Orleans Breaks, 2017).
When discussing marketing and reintroduction with Ms. Young, she
stated that after Hurricane Harvey, noted that there were noticeably less
travelers to the city. However, the full effects of the damage to the reputation of the property and city were difficult for her to assess due to the local
FEMA supported occupancy of the Stinson Suites. She noted that post
natural disaster, once damages had been assessed and repaired, affected
businesses and the local area must advertise their destination to potential
tourists. It may take several years to regain the same tourism numbers
prior to Harvey, but the amount of time it takes can be reduced through
active marketing. Reaching out to news outlets and working with the
local tourism center to create tourism campaigns that can be advertised
nationwide are some potential strategies that can successfully reintroduce
their destination to the public. After the earthquake and tsunami in Japan
in 2012, 10,000 visitors were offered free airfare if they wrote a positive
review about their time in Japan in order to change people’s outlook of
their country (Matulonis, 2015). There are plenty of strategies to combat
misinformation and re-attract tourists to the destination (e.g. Becken &
Hughey, 2013; Khazai, Mahdavian, & Platt, 2018). With a strong, effective,
and memorable campaign that reintroduces the opportunities a destina-
83
tion has to offer, the lull in tourism can be minimized.
Conclusion
The impacts of natural disasters on travel and tourism is vast and
can affect the industry in a variety of ways as it can damage infrastructures, reputation, and lives. Natural disasters can devastate everything
larger staff? What if she had to operate alone?
•
Are there any issues with capitalizing on the displacement of
families due to natural disasters?
•
How does the hotel recuperate from the images of devastation
that pepper the news?
in their wakes and when the local area is impacted, the hospitality
References
industry suffers along with it. Through prevention and response pro-
Becken, S., &. Hughey, K. (2013) Linking tourism into emergency management
structures to enhance disaster risk reduction. Tourism Management, 36, 77-85.
cedures and the implementation of strong marketing campaigns, the
hospitality industry can make those long-lasting effects potentially
temporary. Additionally, the hospitality industry has the inspiring opportunity to provide aid and relief for its local area and its colleagues.
Analysis of the Dilemma
There are several implications for managers of hospitality and
tourism organizations that warrant analysis and discussion. Because
disaster preparedness is essential for survival, there are several dilemmas that arose from this case that warrant study.
The first issue is how to properly prepare for a disaster, and
how that preparation may change depending on whether or not the
disaster is predictable or not (Is Your Facility Prepared, 2015). Under
these circumstances, the storm itself was forecasted, but the damage
was unpredictable.
The second issue to arise is that of human resources management
in times of crises. Proper staffing of the property is something that
must be taken into consideration. The hotel must have enough staff
to operate it and ensure guest safety. However, there is also the issue
of ensuring that staff can take care of themselves and their loved ones
during this time of crisis.
Third, corporate social responsibility is always an issue when a crisis occurs. The hotel opened its door to FEMA victims. This may prove
beneficial as the hotel has opened its doors to those in need or detrimental as there is still capital gain on the hotel’s part. Finally, this study
touches upon the importance of marketing a city recovering from disaster. The hotel and its staff had a fully operati ...
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