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bahaTIMES AUGUST 2011

The Journal of the British Association of Hospitality Accountants

The debate continues… Following on from the members Revenue Management Debate held at The Sheraton Park Lane Hotel in June 2011 there is to be a BREAKFAST WORKSHOP on ‘How do we effectively use data for benchmarking?’ on Friday 16th September 2011 from 8am. This workshop will give attendees a chance to discuss and learn more about the points brought up in the debate. Our HRMC events are always fully booked so don’t delay, register today! To attend please email wayne@baha-uk.org with your details. Hospitality & Leisure

SEE INSIDE THIS EDITION FOR ARTICLES ON: ● ●

The Agency Workers Regulations 2010 The DON’TS of Hotel Technology Update on the Association Education Programmes

In this issue: 4 Membership News 5 Robert Half “Interview Tips” 6 The Agency Workers Regulations 2010 8 Taxation Committee Forum Review

10 Application of VAT to no show fees and cancellation charges 12 Recruiting now for Education Programmes 13 Responsible Business Programme: An expensive luxury?

14 Do’s and Don’ts of Hotel Technology - Part 2 16 HOTSTATS Chain Hotels Review June 2011 20 Forthcoming Events

Servicing your needs bahaTIMES sponsored by:

We provide sale, acquisition, valuation, rating, property and building advice.


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Hospitality PCI DSS Compliance

Implementing Compensating Controls: When to go to Plan B Privacy and protection of guest data has always been a daunting challenge in the Hospitality sector. The PCI DSS were written to meet that challenge. The primary objectives of implementing the PCI DSS framework at your hotel are to identify, minimize and manage the security risks to guest cardholder data. But the framework is not all that easy to apply to your day-to-day operations. The hotel industry in particular faces many dilemmas in implementing the PCI control in their business operations. Classic examples of operations that are contrary to PCI DSS controls are: • • • •

Reservations receive a booking request via email/ fax from a customer containing full PAN and other credit card details in clear text. Customer calls into the Concierge and spells out complete cardholder information to book a last minute evening theatre show at the West end or to book a bottle of champagne and flowers to surprise his wife. During busy hours, Front desk staff may need to share login details on (PMS) to attend to guests queuing up impatiently in the lobby. The Front Office Team has to charge a Credit Card ‘No Show’ fee or booking cancellation fee and needs to maintain a file containing cardholder data for the same.

Since the PCI DSS Requirements specifically prohibit these types of operations: What do you do now? The answer: You implement “Compensating Controls”. You implement “Plan B”

The compromise of point of sale (PoS) or PDQ devices are identified as the cause for almost 28% of reported breaches in the Hospitality sector.

Time to wake up. PCI DSS must be implemented into your day-to-day business processes or your hotel may feature in the next statistic!

Compensating Controls are alternatives to the PCI DSS requirement definitions which can be used when a specific control cannot be implemented due to “legitimate technical or business constraints”. Any of the above would of course constitute legitimate business constraints – since you need the data to conduct your business. Remember compensating controls are risk-based supplementary controls to be used in place of the original PCI DSS requirement. Consequently, they must be designed specifically to meet your business goals and the associated risk to the card data. Just like PCI DSS controls, they must also be able to produce supporting evidence. Finally and perhaps most importantly, the compensating controls must be accepted and formally authorized by your key business stakeholders, Acquirers and QSA’s. At the end of the day this is about risk management. The control you design should be implemented to identify, minimise and manage the risk to the card data you process, store or transmit. So in the situations described above, the Reservation Teams should be equipped with adequate awareness training programs to recognize NEVER to forward or reply back to emails containing credit card information. Separate emails should be used to confirm the reservation with a courtesy reminder to customers never to reveal their full credit card details via emails in future. Similarly, Concierge must be trained to enter all credit card data straightaway into the PMS system and shred any hardcopy material used temporarily so that cardholder data cannot be reconstructed. Sharing of logins should not be allowed at any time. Other supplementary mechanisms such as login reference numbers and CCTV footage at Front Desk should be made applicable to track On- Duty members in case of any discrepancies. As per Data Retention and Disposal Policy applicable at your hotel, credit card details may be required to be stored for Chargeback issues; this is acceptable as long as cardholder data is classified as confidential, marked and labelled appropriately and under protective authorised access controlled storage. Hotels should use video cameras or other access control mechanisms such as key pad entry locks or a simple Sign In/ Sign Out logbook to monitor individual physical access to sensitive areas such as Communication rooms which contain both physical and logical form of cardholder data. So when you encounter a business or technical obstacle in implementing the PCI DSS, remember you always have a Plan B option – implement a compensating control. Just remember the compensating control must: • • • • •

Meet the intent and rigor of the original PCI requirement Sufficiently mitigate the risk that the original requirement was designed to defend Be above and beyond other PCI requirements and not simply in compliance with other requirements Be commensurate with additional risk imposed by not implementing the original requirement Remain effective even after the completion of assessment

Priyanka Bhattacharya is a Senior PCI-DSS QSA at Orthus She has led and executed various compliance engagements delivering risk management programs, security governance initiatives and managing regulatory compliance including PCI DSS, ISO 27001, Data Protection Act, EU- Directive, Safe Harbor, SAS 70, SOX 404 and HIPAA across the industry. For more information about compensating controls, PCI DSS compliance or information risk management contact Orthus Ltd, 1 Lyric Square, Hammersmith, London W6 0NB United Kingdom +44 (0)203 170 8955 or courtney.bryan@orthus.com.

BAHA Members receive 10% off of all Orthus services. page 11

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6+3

6+3

+24

 

page 17

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page 18

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TOTAL UK

LONDON

PROVINCES

 







  

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Payroll %

GOP PAR













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RevPAR

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GOP PAR

Payroll %

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RevPAR

ARR

Occ %

GOP PAR

Payroll %

TrevPAR

RevPAR

ARR

Occ %

 



 

 

 



YTD '11

 

 

 







YTD '11









 



YTD '11

 



 

 





YTD '10



 









YTD '10









 



YTD '10

The Calendar year to June 2011













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Var b/w

 

GOP PAR

Payroll %

TrevPAR

RevPAR

ARR

Occ %

GOP PAR

Payroll %

TrevPAR

RevPAR

ARR

Occ %

GOP PAR

Payroll %

TrevPAR

RevPAR

ARR

Occ %

 







 



Rolling '11



 

 



 



Rolling '11



 



 

 



Rolling '11

 









 

Rolling '10



 

 

 





Rolling '10



 

 



 



Rolling '10

The twelve months to June 2011

The UK Chain Hotels sample is composed of 519 hotels with an average hotel size of 184 bedrooms. The hotels profiled in this report are drawn from the HotStats database and reflect the portfolios and distribution of the hotel chains that we survey and which operate primarily in the three and four-star sectors. Please note: The data samples are reviewed and rebased each year to reflect the changes in the HotStats survey base. As a result, performance ratios published last year may differ from those contained within this report. TRI Hospitality Consulting provides a wide range of services to clients in the hotel sector. It has offices in London, Dubai and Madrid. Contact: Mark Dickens, Managing Director HotStats 0207 892 2207 mark.dickens@hotstats.com

Editors Notes:

 



 

RevPAR

 





 

GOP PAR

ARR





Payroll %

 

 



TrevPAR

Jun '10

 



RevPAR





  

ARR

Jun '11



Occ %

Jun '10







GOP PAR

Jun '11



 

Payroll %

Occ %

 

 





 



ARR

TrevPAR





Occ %

RevPAR

Jun '10

Jun '11

The month of June 2011

UK Chain Hotels - Performance report Currency: ÂŁ Sterling

HotStats Briefing Data













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Donâ&#x20AC;&#x2122;t M Miss the 2011 1 Inaugural Conference Hotel Data Conferen nce Europe 5IF )PUFM %BU %BUB UB $POGFSFODF &VSPQFF JT B HBUIFSJOH PG JOEVTUSZ JOEVTUSZ FYFDVUJWFT FYFDVUJWFT XJUI B TQFDJmDD JOUFSFTU TQFDJm JOUFSF FTU JO DSVODIJOH EBUB UP JNQSPWF UIF QFSGPSNBODF QFSGPSSNBODF PG UIFJS UIFJS IPUFMTT BOEPS IPUFM DPNQBOJFT D CBM UIF MFBEFS JO IPUFM IPUFFM NBSLFU EBUB BOE QFSGPSNBODF QF FSGPSNBODF )%$ &VSPQF JTT IPTUFE CZ 453 (MPC (MPCBM CFODINBSLJOH OFXT QSPWJEFS PG WJUBM CFODINBSLJOHH BOE )PUFM/FXT/PXDPN )PUFM/FXT/PX XDPN UIF EFmOJUJWF EFmOJUJWF EJHJUBM E GP PS IPUFM EFDJTJPO NBLFST NBLF FST JOGPSNBUJPO GPS

HDC Europ Europe p Sessions Include: pe Include: t 0O JUT XBZ CBDL 5IF SFDPWFSZ GPS &VSPQFBO )PUFMTT t &NFSHJOH NBSLFUT N 8IFSFT UIFF OFYU IPU TQPU t )PX NBOZ IPUFMT EPFT UIF XPSME XPSSME SFBMMZ OFFE 45"3 3FQPSU UPPMT t 45 "3 3FQP PSU UJQT UJQT USJDLT BOE UP PPMT PG UIF USBEF t ,OPX ZPVS DPNQFUJUPST DIBOHJOH MBOETDBQF PG IPUFM IPUUFM TFHNFOUT t 5IF DIBOHJOH t 4VQQMZ BOE E EFNBOE GBDUPST Register todayy at www.HDCEurope.com. www.HDCEurope.ccom.

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FORTHCOMING EVENTS AT A GLANCE Sept 16 2011

HRMC Breakfast Workshop on Revenue Management Benchmarking Data

Sept 19 2011

Launch of HOSPA

Sept 26 2011

Agency Workers Regulations hosted by Watson Farley Williams LLP

Oct 17 2011

Industry Outlook hosted by Taylor Global Advisors

Nov 24 2011

Conference and IT Exhibition at the Sofitel T5 Heathrow

Dec 14 2011

Annual Awards Lunch

Jan 18 2012

Members Meeting – Hosted by BDO

Feb 22 2012

Members Meeting – Venue and Topic to be confirmed

March 22 2012

Members Meeting – Venue and Topic to be confirmed

April 26 2012

Patrons Meeting

May 24 2012

Tax Forum 2012

June 21 2012

HRMC meeting

July 8 2012

Quiz Night 2012 The BAHA Meetings Programme is sponsored by Fourth Hospitality a leading supplier of on-demand business intelligence solutions for the Hospitality industry

PATRONS & PARTNERS Gold sponsors include:

CTB Accounts

The Ritz Hotel, London

Agilysys

EasyRMS

TopSource

Best Western Hotels

FM Recruitment

Touchstone NAV

Fourth Hospitality

Kerry Robert Associates

TRI Hospitality Consulting

Global Blue

Keystep

Venners

IDeaS – A SAS Company

Orthus

Xn Hotel Systems Ltd

KPMG

PAR Springer-Miller

Zen Consulting

Aston Scott

PricewaterhouseCoopers

Atos Origin – formerly Shere

Rate Tiger

BDO

Rieo Communications

CHESS Partnership

Softbrands, an Infor Affiliate

CHR Hospitality

STR Global

CMS Hospitality

Symon - Digital Signage

Patrons are valued members of the British Association of Hospitality Accountants, providing the Association and its members with a wide range of services and technical advice. Visit www.baha-uk.org/sponsorsandpatrons.asp to view links to all our patrons.

baha

BRITISH ASSOCIATION of HOSPITALITY ACCOUNTANTS

The British Association of Hospitality Accountants BAHA Administration Office, Suite 6, Merley House Business Centre, Merley House Lane, Wimborne, Dorset BH21 3AA. Telephone +44 (0)1202 889430 Fax +44 (0)1202 887967 Email: admin@baha-uk.org www.baha.co.uk

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BAHA Times - July / August 2011  

The British Association of Hospitality Accountants Monthly Journal - July / August 2011 Edition