This article is written by Saswata Tewari, from University of Petroleum and Energy Studies, Dehradun. This article summarizes all the legal issues concerning the reservation of hotels and major issues and challenges faced by the hotel industry in India.

Introduction

With the advancement of technology, people try to do everything online. Gone are the days when one had to run to a hotel to make a reservation. Booking a hotel online has made it easier for people to go on a vacation. However one should be aware that booking hotels online has its disadvantages at the same time.

What is a hotel reservation system

Hotel reservation systems is a software application developed by a hotel which allows an individual to secure online reservations in advance. It helps an individual to set the length of their stay at a hotel by selecting the dates and also accepts payment digitally. All this is done in advance. One can book a hotel room quickly and efficiently from the comfort of their living room.

Legal requirements of a hotel reservation system

According to the Indian government, a hotel reservation system must have these basic requirements:

• The hotel reservation system should connect every online booking with an account of a user and limit that account to a single user.
• The hotel reservation system should use an advanced encryption system to avoid bots from booking reservations.
• The hotel reservation system should be user friendly and must show the most relevant booking options to the users.
• The hotel reservation system should allow the users to enter date and time and show results within the acceptable time limit set by the user.
• The hotel reservation system should show the accommodation charges and charges of other utilities.
• The hotel reservation system should allow the user to cancel the reservation at any given time. 
• It is compulsory for a hotel reservation system to ask for a personal Identification card number such as that of an Aadhar card, Driving License, etc which is guided by relevant government laws.
• The hotel reservation system is restricted by the government laws to protect the privacy of personal data entered into the system by an individual. Personal data include name, address, telephone number, payment information and other additional information such as the names of the guests travelling along.
• The hotel reservation system should calculate and show the charges beforehand to the person booking the hotel.

Impact of legal safety measures 

The hotel owners have started to reevaluate whether the systems, processes, and procedures which they have in the hotel premises are adequate to provide the duty of care that they owe to the hotel guests. Hotel owners cannot be tolerated to be negligent in providing the duty of care they owe legally to the hotel guests.

Most hotels in India continue to enhance their security measures after the 26/11 Mumbai terror attacks. The primary focus of the hotels is the safety of the hotel guests, staff, and infrastructure. Governments are also putting in extra efforts to ensure security and safety in the hotel premises.

Hotels like Shangri-La have been consulting local security and law enforcement agencies to upgrade their security system and regularly training their emergency response team. Hyatt partnered with Safe hotels AG to examine and assess the security systems at its hotels in India which are operating at enhanced security status.

As of the COVID 19 situation now, hotels have been focusing on the parameters of health and safety within the hotel properties. Hygiene and sanitization issues have been highlighted ever since. To attract hotel guests it is important to show how serious the hotel authorities are regarding the concern of the well-being of the hotel guests.

The hotels have responded to COVID 19 fears by erecting health checks at the gates of the hotel along with proper sanitization of the hotel guests and their baggage. Hotel guests are properly checked for fever with a remote thermometer and are then showered with a light sanitizer mist. Hand sanitizers are being kept at every corner of the hotels. The air ventilation system should be hassle-free in guest rooms and a sign should be kept at the door of the guest rooms mentioning “This room has been sanitized for your health and safety”. It has been made obligatory for hotel staff to wear masks and hotel gloves. All this is done to boost the confidence of the hotel guests. Oyo has implemented safety measures such as sanitized stays with least touch and booking platforms will show a feature ‘Sanitised Stays’ tag to display properties that have cleared background checks for sanitization, hygiene, and installation of protective equipment.

How does the legal framework ensure safety at hotels

Hospitality law covers a range of issues including the privacy of hotel guests, installation of security systems, risk management which includes hotel-related liability issues such as pest and rodent problems, etc.

The ever-tightening hygiene plans and hotel laws regarding food today make it necessary for hotels handling food departments to take adequate safety measures for prevention, early detection, and control of pests in food and food supplies. The food laws are regulated by the government body Food Safety and Standards Authority of India (FSSA). They are responsible for promoting health through administration and inspection of food safety in hotels. The FSSAI lays down strict rules starting from designing the commercial kitchens, usage of kitchen equipment, getting ingredients, handling, and storage and hygiene issues. The standards and procedures set by the FSSA help in improving the safety and hygiene of the Indian hotels concerning the food department. The high level of safety and hygiene set out by the guidelines set by the FSSA would necessitate very high levels of professionalism while delivering food service in the hotels.

Hotel owners are well aware of the fact that they owe a duty of care to the hotel guests and this duty extends to reasonably providing for the privacy, security, and safety of the hotel guests. There is no time like the present for the hotel owners to ensure that they are up to date with the policies of privacy, safety, and of the hotel guests and all the hotel staff is properly trained to ensure compliance with such policies. 

The privacy of the personal data of the hotel guests is protected under the Personal Data Protection Bill 2019. Under this bill, hotel authorities are required to identify where the guest data is kept and ensure that it is protected. Hotels are required to use the guest information explicitly only for hotel reservations, leaving no chances of any data use.

Now coming to the duty of care that is owed by the hotel to the hotel guests. This comes from negligence on part of the hotel authorities and this was especially noticed in the case of Managing Director, Kerala Tourism Development Corporation Ltd. v. Deepti Singh where the Supreme Court held the hotel owed a duty of care to the hotel guests for using its swimming pool. As the swimming pool of the hotel was available for use to all the hotel guests, a close and proximate relationship was established between the hotel authorities managing the safety conditions of the swimming pool and the hotel guests. The duty of care arises from the fact that the hotel is required to maintain the swimming pool and it should be supervised by trained swimming personnel as every guest who enters the swimming pool might not know swimming.

If the swimming pool and its facilities are not properly maintained, then there is a possible consequence of having an accident at the swimming pool.

If it is proved that the hotel owed a duty of care to the hotel guest then the hotel authorities will be held liable for every damage or loss sustained by the hotel guest as a result of that negligence.

What if there were no legal safety measures 

Hotel authorities ensure that the hotel guest’s stay in the hotel is prosperous and full of enjoyment. However, rules and regulations set by the necessary authorities make sure that the hotel authorities follow the latest guidelines for safety and security measures within the hotel premises.

If by chance legal measures are not there to keep the hotel authorities in check then the following problems will appear:

• The hotel authorities will be charging exorbitant fees from the hotel guests.
• The hotel will not take any kind of responsibility for the safety and well-being of the hotel guest.
• The hotel will not be held liable for any loss or damages sustained by the hotel guest due to the negligence on part of the hotel owner.
• No longer will the hotel hold a duty of care to the hotel guests.
• The hotel authorities will be negligent in keeping the guest rooms clean.
• The hotel may or may not keep up with the latest guidelines regarding the regulation of hotels issued by the government.

What customer rights do hotel guests have

• A hotel guest should enjoy the room of a hotel without interference from undesirable guests and hotel staff intrusion. The hotel staff should make sure that the hotel guest is not disturbed by unregistered and unauthorized third parties who intend to gain access to the room.
• The privacy of the hotel guest and their room should be respected by the hotel staff at all times. This also includes the protection of personal data of the hotel guest such as their names, phone numbers, addresses and additional information like Aadhar card number, etc.
• Hotels are responsible for providing safety and maintaining adequate standards of safety for the hotel guest. The hotel will be held liable for any assault or damage on guests by unauthorized persons or by the employees of the hotel. The hotel should check the security of the room occupied by the guest by making sure that the door locks and window locks work properly and the public area near the hotel room is under surveillance at all times.
• Hotel guests are entitled to clean hotel rooms in good condition. The Hotel room should have properly sanitized bathrooms, adequate ventilation of air conditioning in the room and should be free from insects and pests.
• The hotel guests should be indemnified by the hotel in case of any theft, loss, or damage of the personal property of the hotel guests. However, these damages should be given under specific circumstances.
• The hotel guest has a right to safety. The hotel staff should at all times be required to keep the hotel premises safe and sound for the hotel guests. The hotel should monitor and put fences around places like the gym or the swimming pool where children can trip and get hurt. The hotel management should follow local building codes, fire regulations and safety requirements for any hazardous stuff in the hotel.

What legal and social duty does a hotel owe to its guests

A hotel basically owes a duty of care to all of the guests who have booked a room in the hotel. Hotels have a general duty to exercise reasonable care for the safety of the hotel guests. If the hotel fails to provide the standard safety measures then the hotel authorities will be held liable for any injuries sustained by the hotel guest. A hotel is under a duty to protect the hotel guests against unreasonable risk of harm including any criminal acts. 

A hotel should understand that a guest has probably come to enjoy his vacation and should take necessary steps so that the guest’s personal space is not disturbed. A hotel guest expects that their room is in a good condition and that the amenities provided by the hotel are working well in the room such as the air conditioner, fridge, etc. 

A hotel will be held vicariously liable for any damages or any assault done to the hotel guests by any employees of the hotel.

Issues and challenges 

Hotels are required to stay aware of the interests of the hotel guests because with changing times, these interests also change. Following the trend of growing expectations of the hotel guests concerning hygiene standards, cleanliness, and exceptional customer service, the hotel industry is facing a vast set of issues and challenges. Here are some of the biggest challenges that are faced by the hotels:

• One of the major challenges faced by the hotel owners is to keep in check that the employees are always in compliance with the rules and guidelines set by the hotel authorities for the safety and security purposes of the guests. Any kind of damage or assault sustained by the hotel guests done by the hotel employees will hold the hotel as vicariously liable for all those damages or assaults. The hotel needs to hire staff that is properly trained and should always follow the rules and regulations set by the hotel. 
• Health and hygiene is a basic requirement for every hotel guest. Everybody wants a clean and tidy room for their stay at the hotel, especially in the present scenario of COVID 19, anybody will prefer a clean and sanitized room over the complimentary amenities of the hotel. Housekeeping challenges in hotels need to be handled well with effective strategies and bathrooms should be kept clean and sanitized at all times.
• Owing to the pandemic, hotel guests will be expecting contactless services in the hotel to ensure safety during their stay at the hotel. The hotels are expected to adapt to the current scenario by making necessary changes such as sanitization of guest rooms and common rooms within the hotel premises to ensure a safe stay of the hotel guests.
• Threats of personal data being leaked are a matter of major concern for hotel owners all over the world. The data security structures have been enhanced over time but the possibility of data being leaked has also increased significantly. The hotels have to make sure that they use the latest technology while dealing with the personal data of the hotel guests.
• Under any given circumstance, training of the hotel employees would be considered one of the most important tools in upkeep and protecting the hotel. Often hotels limit themselves to train only necessary employees on important issues like the First Aid or managing major crises at the hotel, without caring for training more employees for more complex situations arising in the hotel. Mostly the hotel fails and ends up neglecting the training situation in the hotel. Given that the problems that may arise in case of a crisis are many and hotels should put in more effort in the proper training of the employees and invest in mechanisms like video seminars that will make the training easier for the employees of the hotel.

Critical analysis

The hotel industry is a major part of the GDP of India. The Hotel industry is expected to exceed the expectations of the hotel guest at every stage of their stay if the hotel wants to ensure long-term profitable growth. There are key matters a hotelier should keep in mind while managing the hotel business.    

The main issues in the hotel industry are:

• Checking the health systems and sanitation measures within the hotel premises.
• Proper security systems are installed in the hotel for the surveillance and protection of the hotel guests.
• Keeping up with the latest guidelines laid down by relevant government authorities.
• Making sure that the hotel guest rooms are kept clean and tidy.
• Training the hotel staff and keeping them up with the latest guidelines as prescribed by the government.

The demand for the cleanliness of the hotel guest rooms should not be a surprise, especially within this industry. Hygiene and cleanliness are the most important factors for choosing and recommending hotels post-stay. Especially in the time of COVID 19, hotels should willingly and regularly sanitize the hotel premises and install health check-ups at the entry gates of the hotel to check people for any symptoms of COVID 19 and show that the health of the hotel guests is the primary concern of the hotel management. Safety at hotels is an undeniable need of every hotel guest that stays in a hotel and is a powerful marketing tool as it affects the reviews of the hostel guests post stay in various review websites. People should feel safe in hotels as they do so in their homes. The whole safety issue of the hotel guests should concern the hotel management as it is an important point to consider from a business point of view and it ensures the proper functioning and accommodation of the hotel infrastructure. A hotel that is working 24 hours a day and 365 days a year, should have the latest and best security personnel and systems installed to ensure maximum security within the hotel premises. The service provided by the employees in a hotel is directly linked with the training and development of the hotel employees. The training helps to strengthen the attitudes and behaviours of the employees which leads to providing better customer service. It has been argued that developing a service culture during the training and knowledge building of the hotel employees are good practices that can enhance customer service. Employees Training and development of skills help the hotels to improve the quality of customer service, increase productivity, and reduce costs. 

The list of hotel issues is vast and increasing and the hoteliers must acknowledge these issues and take necessary steps to keep these issues in check. All the major points that we have discussed and analyzed are important and the ball now lies in the court of the hotel management, to take proper care of these issues.

Suggestions 

Things people should consider before booking a hotel reservation online:

• The hotel where you are booking your reservation should be located in a safe area and should be located near the major attractions one plans to visit. One should check the location of the hotel over google maps and find out about the places near the hotel.
• Check out the reviews given on websites like quora. Read through the customer reviews before making the final payment towards the online reservation. You can always get the reviews on the hotel website or social media like Facebook. One will get to know the advantages and disadvantages of staying in the hotel.
• One should pay attention to the additional fees and taxes listed along with the accommodation charges. Many times, hotels charge additional fees and they don’t advertise about the fees on their website and when the time comes for checking out, you get a hefty bill because of the additional taxes listed on the bill. You should talk to the management beforehand about any additional fees or taxes on the bill.
• One should check the security and safety measures of a hotel. Fire is one of the major dangers a hotel can come across. There should be proper safety measures against fire accidents in a hotel. 
• The hotel you are looking to book must have the latest technology and safety measures installed to check the spread of COVID 19. This is a very important thing to look upon owing to the current pandemic situation.

Landmark judgement

In the case of the Taj Mahal Hotel v United India Insurance Company, the Supreme Court had strengthened the duty of care and liability for a hotel for the personal property given by a hotel guest.  

Hotel Patron had visited the Hotel Taj Mahal and handed his Maruti zen car over to the valet of the hotel. However, when he returned to get his car back from the valet, he was informed by the hotel authorities that his car was taken by another guest at the hotel. On further inquiries, it was found that a group of boys had come to the hotel with their car which was also given to the valet parking. When the boys were leaving they asked for their car from the valet and when the valet was preoccupied, one of the boys took the key of the Maruti zen car from the valet’s desk and drove off. The Maruti zen car was fully insured and the hotel patron received the full value of the car from the insurance company. However, the insurance company had filed a consumer complaint against Taj Mahal Hotel, as a subrogee, before the state commission. 

The Supreme Court prepared several issues after hearing the arguments of both the parties. They were:

• Whether the insurance company could bring legal action as a subrogee?
• Whether the hotel can be held liable for the theft of the car taken from the valet parking under bailment laws?
• What is the level of care needed to be taken by the hotel?
• Whether the hotel can be acquitted of liability of contract?

The Supreme Court held that laws of bailment would have relevance in this case as the Maruti zen car was handed by the guest to the hotel valet. The hotel owed a duty of care to the hotel guest because as per bailment laws in case of goods being lost in the possession of a bailee, the bailee will be held responsible. It was observed that the hotel had not taken reasonable care to ensure that the valet car keys were kept out of the reach of the outsiders or that valet cars were kept in a safe location or that there were security systems installed to verify the owner of a valet parked car. It was held by the Supreme Court that the car was stolen because of the negligence of the hotel. The Supreme Court relied on provisions of Section 151 and Section 152 of the Indian Contract Act, 1872 to state that it was not possible to limit liability under Indian statute law. The sections set the degree of care ought to be taken by a bailee in the absence of a contrary special contract and that in the case where a special contract is involved, the degree of care which a bailee must exercise can be contracted to be higher but not lower than that provided in the Indian Contract Act, 1872.

Conclusion

Truth be told- we all need a vacation at some point in time. The main purpose of going on a vacation is to relax and enjoy without having any tension. A person staying in a hotel expects to get the best deals and amenities from the hotel and its employees. However, we should check into the details of the hotel we are looking forward to booking as prevention is better than cure.

One should always check if they are receiving the same worth of services as they are being charged by the hotel. Cleanliness, sanitization, good customer service, and comfort during the time away from home are all necessary things to consider for a hotel guest.

References

• https://www.siteminder.com/r/technology/hotel-internet-booking-engines/requirements-hotel-reservations-system/
• https://www.traveldailynews.com/post/safety-at-hotels-key-points-that-ensure-the-development-of-a-hotels-safety-culture
• https://www.hcchotels.com/en/blog/10-things-to-consider-before-booking-a-hotel/

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