study exposes fraud in hotels

01 January 2000
study exposes fraud in hotels

DISHONESTY among staff working in hotel bars is endemic, according to a new book published by the Centre for the Study of Public Order at Leicester University.

Short-changing the customer, under-ringing tills and diluting alcohol are all commonplace, according to the article contained in Crime at Work.

PhD student Karen Mochrie Gill, who researched the chapter on hotel fraud, conducted in-depth interviews at two town-centre hotels and two country properties belonging to a major hotel group, at the invitation of the company's directors.

While the study was conducted at only four hotels, Ms Mochrie Gill was convinced the problem was typical of the hotel industry. In some businesses it was considered part of the culture, she said.

And it was not just junior staff who were involved in fraud. Managers also overcharged for functions or added extras on to bills to boost the profits of their departments and increase their own pay and promotion prospects.

Although not all staff were acting dishonestly, the honest ones were also affected by the practices. They became demoralised and frustrated in their attempts to battle against a system deeply ingrained with cheating. Often they turned a blind eye or, in many cases, they gave up and left.

"Hotels that tend to have a lot of dishonesty also have a high level of staff turnover," said Ms Mochrie Gill, a former Westminster hotel school student whose masters degree also examined hotel fraud.

The motivation for the dishonesty was varied. There was a strong link to low pay and a need to cheat to make ends meet.

Another factor was that fiddling added excitement to what was an otherwise boring job.

Also significant was the ease with which cheating could take place. Large amounts of cash, stocks of valuable liquor, and loosely monitored accounts systems, all typical of the hotel industry, were a boon to the would-be thief.

The company featured in the report was keen to have the study undertaken, on the condition that it remained anonymous.

"Often directors do not know what is going on in their hotels - if the accounts are in order they have no reason to suspect anything," said Ms Mochrie Gill.

As a result of her study, Ms Mochrie Gill has now started to check her change in pubs and her restaurant bills more carefully. "It's amazing how many times it is wrong," she said.

lCrime at Work: Studies in Security and Crime Prevention is available from Perpetuity Press, PO Box 376, Leicester, LE2 3ZZ, price £25 plus £3.95 postage and packaging.

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