Cruise Passengers Lost Overboard

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Cruise Passengers Lost Overboard

Contents

SECTION I – LEGAL ISSUES. ….2

Federal Statutes…… 2

State Statutes. ….4

Federal/State/Local Regulations….. 4

SECTION II – ANALYSIS….. 4

Critical Thinking…… 4

Legal Standards…… 5

SECTION III – MANAGEMENT SUGGESTIONS. ……5

Relation to Real Life Experiences….. 5

Discussion of Legal Issues from Management Review…. 6

References….. 7

SECTION I – LEGAL ISSUES

Topic

Cruise ship passengers overboard are not common. Since this can happen all over the world, there isn’t a specific statistic compiled by the United States government. Although, there are about 20 incidents a year (Faust, 2020). Many would think people always die when they go overboard but the truth is that it depends on several factors. These factors include the person’s impact on the water and the injury caused by that and also how quickly they are rescued by the cruise crew members or the Coast Guard. More times than not, the person dies before they reach the water (Faust, 2020). If there is inclement weather, it makes it tough for the person to swim as well as for the staff to find them.

Typical overboard accidents are caused by different causes. Defective handrails, dangerous pathways, failure to warn of rough weather conditions, and intoxication. The company is held liable if any of these things are the cause of an overboard accident. The company would have failed to be negligent, even with an intoxicated passenger who fell overboard. It is the duty of the crew members to not continue serving highly intoxicated passengers as there is major risk for injury or even death (Lee, 2019).

When a crew member or passenger is overboard, the ship has the duty and obligation to do everything they can to rescue them. As soon as the incident occurs, the ship crew stops and turns back to the area where it happened. They then perform a lengthy search and rescue operation that sometimes can last several hours. The captain also notifies also ships in the area which are also obligated to help and local maritime authority, like the Coast Guard (Faust, 2020).

It is important to note, that not all overboard situations happen at sea. Some situations happen once the ships are docked in one of the destinations.

http://cruisebruise.com/

Federal Statutes

The United States has federal laws that command vessels to have security and safety requirements.

U.S. code 3507 – Passenger Vessel Security and Safety Requirements:

  • VESSEL DESIGN, EQUIPMENT, CONSTRUCTION, AND RETROFITTING
    • IN Each vessel to which this subsection applies shall comply with the following design and construction standards:

(A)The vessel shall be equipped with ship rails that are located not less than 42 inches above the cabin deck.

  • Each passenger stateroom and crew cabin shall be equipped with entry doors that include peepholes or other means of visual

(C)For any vessel the keel of which is laid after the date of enactment of

the Cruise Vessel Security and Safety Act of 2010, each passenger stateroom and crew cabin shall be equipped with—

  • security latches; and
  • time-sensitive key

 

  • The vessel shall integrate technology that can be used for capturing images of passengers or detecting passengers who have fallen overboard, to the extent that such technology is
  • The vessel shall be equipped with a sufficient number of operable acoustic hailing or other such warning devices to provide communication capability around the entire vessel when operating in high-risk areas (as defined by the United States Coast Guard).

These statutes are a few among many that state the importance of having proper railings and security latches. Along with the importance of having technology that will allow for instant communication. Vessels are also mandated to have technology that will detect passengers who may have fallen overboard. It is also mandated to have devices all over the vessel that have communication capability in the case that the captain needs to share an important message with passengers and crew members (Cornell, 2010).

State Statutes

Maritime laws differ from state laws. It all depends on where the accident occurred. If a person is on a cruise ship, they are more than often not under United States’ jurisdiction. This also includes when the ship is docked in another country. The person will usually be under the jurisdiction of that country. If they are in international waters, that is where Maritime laws come in (G, 2020).

Federal/State/Local Regulations

Since the year 2000, nearly 300 have gone overboard from cruises and ferries. In retrospect, this is a small margin in comparison to the millions who vacation on cruise ships every year. There is a larger issue at hand. There have many instances where families haven’t received the answers or closure they deserve. There are roughly 19 people who go overboard while aboard a cruise ship every year (Passy, 2017). Later in the analysis, the Cruise Passenger Protection Act will be discussed. This is a fairly new bill that is set to improve passenger safety laws.

SECTION II – ANALYSIS

Critical Thinking

There are many reasons why a crew member or passenger would go overboard. There have been incidents where it was an accident because they were either highly intoxicated or a hand railing was not secure, to passengers who jump willingly for a good laugh or to go on a swim like the 27-year-old passenger who jumped off the 11th-floor balcony on the Symphony of the Seas. His friends caught him jumping off the balcony on video and he admitted he didn’t think it was a big deal and did it to make his friends laugh (The Maritime Executive, 2019). Many say he is lucky to be alive. This group of men was banned from traveling on Royal Caribbean in the future. Others go overboard to simply commit suicide. There are still many questions at play and not enough answers. Cruise ship companies and families of those lost overboard have intense debates because it’s a problem that needs to be solved. Not just for those who have lost loved ones overboard and still don’t have answers but to help prevent someone from going missing overboard in the future.

Legal Standards

There is a new bill to help improve passenger safety laws. Advocates for victim’s families are working to reduce incidents and are arguing that there should be independent law enforcement agents on cruise ships. Their advocacy efforts grabbed the attention of members in congress. The Cruise Passenger Protection Act would eventually require government authorities and agencies

including the Unites States Coast Guard and the Department of Transportation. This legislation would build upon the Cruise Vessel Safety and Security Act which was signed into law in 2010 by President Obama (Passy, 2017).

The cruise line industry has not been quick to implement the advanced radar technology which can detect when an individual goes overboard and that is also something that is implemented in the Cruise Vessel Security and Safety Act (Passy, 2017).

SECTION III – MANAGEMENT SUGGESTIONS

Relation to Real Life Experiences

In August of 2004, a 40-year-old woman by the name of Merrian Carver sailed on a Celebrity Cruise that sailed from Seattle to Alaska, alone. Merrian’s daughter could not get in touch with her mother so she contacted her grandparents who had no idea she had traveled on a cruise. They filed a missing person’s report, and the police ended up finding a bank transaction that showed she had gone on a cruise. The family ended up finding out through a private investigation that the cruise ship had reported her missing, days into the voyage. Most of her belongings were tossed.  It is now 2020 and the family still has no idea what happened to Merrian after a whole year of searching for answers.

In May of 2017, an American man who was 61 years old. Went missing after going overboard in the South Pacific. A Georgia man who was 32 years old went missing after he jumped from his balcony in the Bahamas. The families have no idea what happened to these passengers (Passy, 2017). In 2017, only 3 of the 13 people were rescued alive that were found overboard.

Discussion of Legal Issues from Management Review

As a manager, it is extremely important to make sure that all of the crew members and staff are properly trained. It is also extremely important to make sure that all safety measures are taken, as simple as tightening the bolts in handrails.

It is also important to be informed of any new legislation being passed so that families feel safe and cruise ship companies save themselves from any lawsuits.

References

46 U.S. Code § 3507 – Passenger vessel security and safety requirements. (n.d.). Retrieved December 9, 2020, from https://www.law.cornell.edu/uscode/text/46/3507

Faust, C. G. (2020, February 27). What to Expect: Man Overboard on a Cruise Ship – Cruises. Retrieved December 03, 2020, from https://www.cruisecritic.com/articles.cfm?ID=2069

G, H. (2020). How Maritime Laws Differ from State Laws for Cruise Ship Injuries. Retrieved December 9, 2020, from https://www.hg.org/legal-articles/how-maritime-laws-differ-from- state-laws-for-cruise-ship-injuries-50913

Justia. (2018, August 10). Cruise Ship Law. Retrieved December 11, 2020, from https://www.justia.com/admiralty/cruise-ships/

Lee, S. (2019, July 23). Overboard Accidents and Ships. Retrieved December 9, 2020, from https://www.attorneystevelee.com/our-library/overboard-accidents-and-ships/

The Maritime Executive 01-18-2019 03:29:15, The Maritime Executive 12-11-2020 04:11:00,

The Maritime Executive 12-11-2020 02:58:51, The Maritime Executive 12-11-2020

02:42:31, & The Maritime Executive 12-11-2020 01:49:11. (2019).

Cruise Passenger May Face Legal Action After Jumping Overboard. Retrieved December 11, 2020, from https://www.maritime-executive.com/article/cruise-passenger-may-face-legal-action-after- jumping-from-cabin

Passy, J. (2017, August 12). The dark side of cruises. Retrieved December 10, 2020, from https://www.marketwatch.com/story/the-dark-side-of-cruises-since-2000-nearly-300- people-have-gone-overboard-2017-07-20

Bitcoin and the Legal Fight for Cryptocurrencies

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Bitcoin and the Legal Fight for Cryptocurrencies

An Analysis on the Legal Developments of Cryptocurrency Acceptance and its Impact on the Hospitality Industry Las Vegas, NVC

Contents

Abstract …………………………………………………………..2

Introduction And Background. ………………………….3

Current Legal Environment ………………………………5

Hospitality Use Cases……………………………………. 10

Recommendations And Conclusions. ……………….14

Citations. ………………………………………………………17

ABSTRACT

The fascinating and intricate world of cryptocurrency holds extremely high promise for adoption into hospitality and tourism systems. The industry could benefit greatly from blockchain adoption but rampant legal concerns including struggles with how to classify bitcoin and other cryptocurrencies, security concerns, lack of regulatory measures, tax concerns, as well as propensity to use blockchain for illegal means due to its inherent anonymity all place the future of blockchain adoption for the wider hospitality industry in jeopardy.

INTRODUCTION AND BACKGROUND

Some would argue that blockchain is the greatest thing that most people have never heard of. Proponents would say blockchain elevates trust and relational capabilities in an expedited and holistic manner, democratizes participation in economic systems and re-distributes power and economic relations amongst actors by influencing the way data is collected, stored, exchanged and owned (Tham and Sigala, 2020). Detractors would argue that bitcoin combines elements of a Ponzi scheme with market manipulation and pump-and dump (Engle, 2016) and opens the flood gates up to potential criminals to make their illegal activities even more anonymous to the wider public. Whatever side of the fence one may be on, the potential around cryptocurrency and blockchain in general is undeniable.

Cryptocurrency employs cryptography to conduct secure transactions, with Bitcoin being the most well-known of cryptocurrencies. At its heart, Bitcoin uses a peer-to-peer payment system to conduct secure electronic transactions but it operates on what is called the blockchain. (Zeng et al, 2015). In order for transactions to be verified, a blockchain must be solved in order for the transactions to be added into the public ledger. Many argue that due to its distinctive technological nature and different configuration set- ups, blockchain has the potential to create and form new market settings and equilibriums that no only simply fix existing sustainability gaps and needs but also form new markets with new rules and institutional logics for achieving tourism sustainability (Tham and Sigala, 2020). Among the emerging technologies surveyed by PwC in 2017, hospitality and leisure are poised to receive the largest share of investment in blockchain technology (Kwok and Koh, 2019). Blockchain has become a significant source of disruptive innovation and when combined with all of the sub industries that make up the larger hospitality industry, these industries create a $7.6 trillion dollar market, roughly 10% of the world’s GDP (Kizildag et al., 2019).

This all shows the immense promise and potential for the hospitality industry should they begin to embrace blockchain technology more readily, but there are huge barriers to this happening on a wider basis. Some of the biggest issues that face blockchain mass adoption from a legal standpoint are its inherent decentralization, its propensity to allow illegal unregulated commercial activity, its precarious legal classification of what exactly cryptocurrencies like Bitcoin are considered, as well as the uncertain tax implications of certain cryptocurrencies like Bitcoin. All of these issues we will explore in detail later in the paper, but all have their own unique challenges that could prevent wider adoption of Bitcoin and other cryptocurrencies like it. Bitcoin is the mother of all cryptocurrencies and was the first of its kind, so arguably if Bitcoin cannot attain mass adoption and greater regulatory and legal approval, neither will other cryptocurrencies.

CURRENT LEGAL ENVIRONMENT

The hospitality industry in general has experienced a surge of peer-to-peer transactions in a number of other forms outside of the blockchain, such as Airbnb and Uber (Zeng et al., 2015). Peer-to-Peer transactions will continue to increase well into the future due to their inherent flexibility and convenience and blockchain is no different. With respect to Bitcoin specifically, Bitcoin provides speed and convenience to a plethora of hospitality services. Bitcoin currency conversion makes international travel more comfortable because travelers can simply convert their native currency to the currency of their foreign travel. From the perspective of the business entity, businesses can avoid paying high transaction fees from intermediaries such as banks and credit card companies and they can accept Bitcoin payment from anywhere in the world. Firms can reduce expenses by paying a lower transaction fee with the usage of Bitcoins. Businesses also eliminate the risk of credit card charge-backs or warranty issues, since a Bitcoin payment is final and complete when accepted, without recourse by the consumer (Zeng et al., 2015).

There are a variety of examples of the mainstream appeal of Bitcoin and blockchain in a variety of companies. Companies such as Cheapair.com and Expedia have accepted Bitcoins for local and international transactions (Zeng et al., 2015). Large distribution corporations and verticals have invested in developing proprietary blockchains and smart contracts to manage corporate procurement, B2B contracting and SC relations (Tham and Sigala, 2020). Governments of several small island economies are even heading the adoption of blockchain technology and their cryptocurrency volume constitutes the highest proportion of the billion-dollar daily trading volume of all cryptocurrencies (Kwok and Koh, 2019).

While this adoption may seem highly promising, there are still numerous legal issues as it pertains to Bitcoin and blockchain technology that are contentiously being debated and overall represent a steep uphill battle that must be fought in order to achieve greater mass adoption for these disruptive technologies. For starters, there is a deep mistrust of cryptocurrencies from a security standpoint and lack of governmental regulation. Several Bitcoin exchanges such as Mt. Gox, Tradehill and Bitcoinica have been compromised by hackers and fraudsters with significant loss to investors (Engle, 2016). There is a severe lack of awareness surrounding data security as it pertains to blockchain and while the intention of blockchains are to reduce corruption and collusion, there are many examples where they nonetheless have been a guise for well-concocted plans for money laundering as well as a variety of other crimes (Tham and Sigala, 2020).

When it comes to lack of governmental regulation, there are very few direct laws or statues that directly address blockchain as a whole. More statues have been created around Bitcoin due to its popularity, but this only represents a fraction of the larger cryptocurrency ecosystem. Most of this is due to the inability of many courts to even properly iron out how to classify Bitcoin and other cryptocurrencies. In SEC v. Shavers, a U.S. court affirmed Bitcoin to be a currency (Engle, 2016). If this continues to be affirmed by other courts, an argument exists that cryptocurrencies such as Bitcoin have the potential to be deemed counterfeit and rendered illegal due to them competing against the dollar as a general medium of exchange and thereby violating the federal money monopoly (Engle, 2016). The Stamp Payment Act makes it illegal for an individual to create and circulate legal currency that competes with U.S. Currency (Zeng et al.,). For now Bitcoin avoids Stamp Payment Act laws because it does not emulate U.S. coins and presents no threat to the American dollar, in addition to the fact that very few courts have even affirmed Bitcoin to be considered a currency.

Gerkis and Krikunova, supra note 16, at 6 classified Bitcoin as a security. If Bitcoin is found to be considered a security, this means it falls under SEC jurisdictional regulation and this means that Bitcoin represents a business investment in which the Bitcoin holder expects to gain a profit (Zeng et al., 2015). In addition to this, there have also been issues raised about whether a Bitcoin transaction is subject to sales tax, and income tax on profits. Currently the IRS states in Notice 2014-21, 2014-16 I.R.B. 938 that virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency. Therefore, cryptocurrency should be taxed according to the gain or loss that taxpayers realize when they sell or exchange cryptocurrency. This further points to Bitcoin and other cryptocurrencies being seen more as security than actual currency. Whether a security or currency there even exists a middle ground where cryptocurrencies can be considered currencies, and yet may also be subject to SEC jurisdiction as a security, depending on the specific facts of the case (Engle, 2016).

Cryptocurrencies have even been found to be investment contracts under the Howey test based on definitions prescribed in SEC v. Howey where cryptocurrency is found to be an investment of money that has common enterprise which is expected to produce profits thanks to the effort of others (Engle, 2016). Many countries do not even consider Bitcoin and other cryptocurrencies to be real currency, but allow them to be used as a medium of exchange. The act of exchange of services or products without legal tender is known as bartering and some have even argued that Bitcoin and other cryptocurrencies presents itself more as a barter transaction than a currency, though nowhere is it spelled out as such (Zeng et al., 2015). Between labeling them as a currency, security, investment contract, or simply as a bartering system, blockchain and the cryptocurrencies that sit in its medium clearly have a lot of regulatory issues to work out not to mention the deep security implications and ripeness for illegal activity to take place, but the issues don’t stop there.

Cryptocurrencies, like public companies, have ways that they formally announce to the public that they are now public. These are called ICOs, or Initial Coin Offerings. ICOs are relatively new terms and due to them being fairly new there is not a lot of regulation around them. Since 2017 there has been a booming surge of ICOs that raised outrageous sums of money in significantly short time spans, particularly when compared to IPOs held by traditional companies. In 2017 alone, ICOs collectively raised an estimated $5.1 billion and Brave, a company developing a decentralized web browser, raised an astonishing $35 million in less than 30 seconds (Robinson, 2018). Bancor, a company developing a cryptocurrency exchange platform, raised in excess of $153 million in just three hours (Robinson, 2018). Another example of innovatively using ICOs was that an ICO was used as a fundraising mechanism to develop a resort on the Great Keppel Island in the Great Barrier Reef, off the coast of Queensland (Tham and Sigala, 2019).

Many of these ICOs were able to be held without formal letters of incorporation, without a Board of Directors, and without representing a formal company. In many ways, people invest in an idea with no formal regulatory agency to validate the authenticity of these different ICOs and where the money raised is actually going. It is what Robinson calls the New Digital Wild West. One could argue that the entire regulatory nightmare that blockchain faces in its hope for mass adoption is for sure the definition of the New Digital Wild West.

HOSPITALITY USE CASES

Hospitality industry professionals are motivated to explore the possibilities of utilizing Bitcoin as an acceptable form of payment in their global market as well as other cryptocurrencies. However, hospitality professionals have a legal obligation to safeguard guests and patrons identity and to not participate in illegal transactions, such as fraudulent acts and “money laundering” (Zeng et al., 2015). At present, academic literature studies on Bitcoin remains concentrated on its economic value, with early adopters keen to speculate by buying with the intention of recouping quick returns on their initial investments. There remains a lack of critique as to how cryptocurrencies, such as  Bitcoins, work operationally across very diverse market conditions (Tham and Sigala, 2020). While this may be true specifically for Bitcoin, there are a variety of examples on how the building blocks which Bitcoin is built on, blockchain, can be utilized to benefit hospitality enterprises and is already being utilized by a variety of hospitality enterprises.

Early adopters of blockchains and cryptocurrencies within the tourism industry such as major airlines like Air New Zealand, Air France-KLM, Singapore and Lufthansa as well as big hotel chains like Marriott’s Bonvoy loyalty and booking system suggested that innovators required significant financial and resource investment before blockchains can be leveraged to the business mode (Tham and Sigala, 2020). This thought process slowly waned as a variety of different areas of the industry as well as outside the industry began to participate in blockchain innovation thanks to its wide of amount of flexibility and complexity.

Discussions and arguments about the applications of blockchain technology in financial services are particularly rampant in areas such as commercial and internet banking, innovative payment solutions, point-of-sale (POS) technology, asset trading and exchanges, financial security concerns, and financial advice and customization of personal/household finances (Kizildag et al., 2019). This has many parallels to hospitality enterprises as perhaps one of the readiest applications of blockchain technology to hospitality and tourism will emerge in the form of payments and transactions that are facilitated by cryptocurrencies , such as Bitcoin (Kizildag et al., 2019). Bitcoin ATMs have already been installed in Canada, Australia, Finland, Slovakia, Germany, UK, Switzerland, and the United States. The shopping website, eBay, accepts Bitcoin transactions in the UK and Cumbria University started to accept Bitcoin as a tuition fee payment (Zeng et al., 2015). Countries such as Russia and South Korea have already initiated blockchain platforms to facilitate cryptocurrency transactions in tourism (Tham and Sigala, 2020).

There are a variety of other ways that companies are utilizing blockchain technology to their advantage outside of payment transactions. TUI Travel Group is already using blockchain technology to manage the distribution of its inventories and other assets and handle internal processes such as loyalty and reward platforms to improve the end-to-end user experience (Kizildag et al., 2019). Blockchain has the high probability to influence the way companies structure their loyalty and reward program as blockchain allows companies to issue loyalty tokens as rewards in their loyalty programs. This particular loyalty token enables guests to freely exchange, trade and/or redeem loyalty tokens in an open forum with others to increase the monetary value of the rewards (Kizildag et al., 2019).

In wine tourism, specifically by openvino.org, blockchain is being used to provide transparency and information about the origin/authenticity of wine offerings (from grape cultivation to winemaking and distribution/sales until the final stage consumption at  cellar door or restaurant) and even raise capital and crowdfund wine tourism projects by issuing and developing cryptocurrencies whose value is backed-up with real wine products (Tham and Sigala, 2020).

From a paperwork and administrative perspective, blockchain is allowing for a distributed sharing of information to check against loan records, credit histories and collate legal documentation such as digital signatures and electronic copies of personal identification in an expedited manner. This not only significantly reduces the time, cost and effort required from all parties involved but is also more sustainable as it eliminates unnecessary paperwork (Tham and Sigala, 2020).

Given the highly competitive and evolutionary trends confronting tourism providers, blockchains and cryptocurrencies present a viable proposition to reduce inefficiencies, re-distribute power amongst economic actors and create a more equal playing field between large and small operators that heavily dominate the tourism industry, challenge current power relations and structures within SCs by providing transparency and establishing authenticity of actors and transactions and question and disrupt traditional intermediary services by empowering actors to keep ownership of their identity and transactional data (Tham and Sigala, 2020). By providing more equal opportunities to small and bigger tourism players to participate and compete in the tourism economy with “equal terms,” blockchains and cryptocurrencies create more inclusivity related to the credence nature of tourism and its ethical and responsible values (Tham and Sigala, 2020).

RECOMMENDATIONS AND CONCLUSIONS

There is a host of opportunity out there when it comes to the overall potential use cases of blockchain and cryptocurrencies in the context of the hospitality industry. One of the key areas of focus for wider adoption of this emerging technology will rely on there being a “leader” and/or a critical mass of enthusiasts mutually supporting and trusting   one another within a blockchain ecosystem. In a similar vein, and to support the industry- wide adoption of blockchain the existence of an industry representative (e.g. a destination management organization) and/or an exemplar best practice can significantly help in pushing blockchain adoption (Tham and Sigala, 2020). These two points point to the notion that people have to get in the game in order for its value to spread. Companies  have to take risks and be willing to get involved in the cutting edge of technology in   order for blockchain to even have a chance at survival. Early adopters and first movers  are some of the most important key players when it comes to finding champions for this kind of innovative change, particularly from very large enterprises that command the attention of other smaller entities.

Many of the roadblocks to greater blockchain adoption is due to the legal battles that are still very much alive. Much of this starts with a lack of foundational knowledge around what blockchain and cryptocurrencies are and the variety of benefits that they can provide. The average person does not know what blockchain or a cryptocurrency is and would not be able to explain it and even those who are intimately familiar with the concepts may struggle to explain it to a layman. For laws to change, lawmakers have to understand what the technology is. They have to understand its value, what it provides, and the ways it can improve larger society while also understanding its risks. No business operates without risk, yet businesses are still allowed to operate. In the same vein, while blockchains were primarily designed to ensure that the system would self-regulate without necessary governmental intervention (Tham and Sigala, 2020), this sentiment is largely what is keeping blockchain from larger adoption. Those involved in blockchain and cryptocurrency have to be willing to find compromises between completely compromising their system to regulatory oversight and nightmares to finding a healthy balance between regulation and privacy. This may take a while to determine the appropriate balance, but it is critical to the mass adoption of blockchain.

Kwok and Koh aptly explained some of the most critical ways that blockchain can benefit hospitality enterprises, and while their research was focused mostly on small island entities, the benefits can have strong parallels to larger economies and tourism industries in more developed countries:

“While the application of blockchain technology is multi-faceted, its implementation is set to benefit tourism in four broad areas. First, blockchain will enhance tourist experience as the platform support technology-mediated learning which is dyadic between tourism operators and tourists…. Second, cross-border remittances via blockchain network in SIEs is quick and hassle-free. Additionally, pricing in cryptocurrency unit is universal and real-time, thus, easing foreign currency conversion… Third, using blockchain technology provides a means of diversification– to safeguard the currency and strengthen the banking system. The financial institutions of SIEs are highly reliant on correspondent banks. Besides minimizing the prohibitive cost of compliance to sustain their operations in SIEs, blockchain technology will also establish a more robust mechanism to monitor compliance… Lastly, from the host destination perspective, doing away with the commission fees via the blockchain can contribute to lower overall operating cost.”

Blockchain has a variety of benefits but comes with a variety of legal struggles that must be worked through in order to achieve wider adoption. As technology advances, so too must the business practices of operators. Blockchain enables hospitality companies to stay on the cutting edge while also cutting out intermediaries and providing customers with an end-user experience that attempts to actively protect their identity but also provide them a more customized and even flexible experience. Blockchain is applicable to a wide variety of functional areas and can benefit nearly any portion of a hospitality business, but that business has to be willing to ride the wave of changes that this new disruptive technology will face as well as face the limited acceptability until further adoption has been achieved.

CITATIONS

  1. Zeng, , Thomas, J. H. , Kitterlin-Lynch, M. , Chang, S. H. , & Williams, J. ( 2015). Bitcoin: Legal issues and usage in the hospitality industry. Journal of Hospitality & Tourism Cases, 4 (3), 68– 73.
  2. Tham, and Sigala, M. (2020), “Road block(chain): bit(coin)s for tourism sustainable development goals?”, Journal of Hospitality and Tourism Technology, Vol. 11 No. 2, pp. 203-222.  https://doi-org.ezproxy.fiu.edu/10.1108/JHTT-05-2019-0069
  3. Kizildag, , Dogru, T., Zhang, T.(., Mody, M.A., Altin, M., Ozturk, A.B. and Ozdemir, O. (2019), “Blockchain: a paradigm shift in business practices”, International Journal of Contemporary Hospitality Management, Vol. 32 No. 3, pp. 953-975. https://doi-org.ezproxy.fiu.edu/10.1108/IJCHM-12-2018-09586
  4. Andrei J. Kwok & Sharon G. M. Koh (2019) Is blockchain technology a watershed for tourism development?, Current Issues in Tourism, 22:20, 2447-2452, DOI:10.1080/13683500.2018.1513460
  1. RANDOLPH ROBINSON II * (Summer, 2018). ARTICLE: THE NEW DIGITAL WILD WEST: REGULATING THE EXPLOSION OF INITIAL COIN OFFERINGS. Tennessee Law Review, 85, 897. https://advance-lexis- com.ezproxy.fiu.edu/api/document?collection=analytical- materials&id=urn:contentItem:5W1N-VKK0-00CW-1253-00000-00&context=1516831.
  2. Eric Engle (2016). ARTICLE: IS BITCOIN RAT POISON? CRYPTOCURRENCY, CRIME, AND COUNTERFEITING (CCC). Journal of High Technology Law, 16, https://advance-lexis-com.ezproxy.fiu.edu/api/document?collection=analytical-   materials&id=urn:contentItem:5JW7-PKM0-0198-F0H3-00000-00&context=1516831.

Airbnb, VRBO and Short-Term Rentals- Analysis of the legality of short-term rentals and its impact on hospitality

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Airbnb, VRBO and Short-Term Rentals – Analysis of the legality of short-term rentals and its impact on hospitality

Introduction

Short Term rental companies like Airbnb and VRBO have been around since 2007. These companies allow homeowners the opportunity to make an extra income by renting their homes or rooms for a short period of time. As opposed to renting a hotel room, guests have the chance to book a complete apartment or condo through these platforms. Over a few years, the companies were well on their way to be successful. However, with success came a few headaches. It appeared to be that homeowners began to claim guests trashed the homes, broke furniture, and left the homes absolutely destroyed. Other legal issues arose in major cities, where local governments began to set regulations that threaten the platform and its short-term rental model. This paper will analyze the legal concerns surrounding short term rentals and specific cases that apply.

The paper will also address the impact the short-term rental company has had on the hospitality industry. Initially, the paper will address the history of the short-term rental industry and how it came about. Then we will analyze specific cases that challenge the legality of it and then we will go into detail on it. The paper will also go into management suggestions and how this has impacted the lodging industry.

Historical Background

Websites like Airbnb and VRBO offer their services as a home-sharing platform that allows owners to rent their homes out to guests for a short period of time. Guests then sign a lease, pay a fee and stay at the home for the allotted time. Airbnb and VRBO and other companies act as brokers that receive a commission from the bookings and transactions that occur on their platforms. In order for owners to use the platform, they must create a listing with pictures, videos, and price list for the home. More often than so, the prices and availability on Airbnb are more affordable and convenient to travelers. This makes it a competitive option to hotels and other lodging facilities. Although the platform itself is not illegal, there are issues that arise in local government from tenants renting their apartment out in cities. One restriction of short-term rentals is in New York City. To be more specific, the city has tried to pass bills that restrict short term rentals. In New York City, the Governor passed a law that owners and tenants cannot rent out an entire apartment for less than 30 days (New York, 2020). In addition, New York Multiple Dwelling state law prohibits advertising an apartment in any building with 3 or more residential units, for rent of any period less than 30 days, doing so will violate the law and the owner can be fined up to $7,500 (New York, 2020). According to an article in the Daily News, the law is targeted to those who drive up the housing costs in New York City. They are really trying to target the owners that have multiple listings that are managed by commercial operators and not owners (Hessinger, 2015). The main battle in some urban cities is that with this “sharing economy”, these short-term rentals are illegal if less than 30 days (Barber, 2016). Some critics even say that Airbnb has removed neighbors and friendly meet-ups, especially in tourist cities and popular neighborhoods.

Now not only does this cause an issue with local governments and regulations, it also causes an issue with the lodging industry. Airbnb makes it easy for guests to find valuable accommodation in well-known locations. This often poses a threat to hotels, as the price is significantly cheaper for Airbnb. Therefore, this undercut the profits to the hotel industry. This paper will then analyze the impacts Airbnb has had on the lodging industry and some management suggestions.

Legal Issues

One of the toughest challenges the home sharing platforms has been in the city of New York City. The battle has been mainly with state laws and local regulations that strictly prohibit the advertising of short-term rentals on sites and if found advertising owners can be charged with a heavy fine. In order to challenge this a case was brought upon the city. Under Airbnb Inc, vs, City Of New York, Airbnb initiated action due to an ordinance that the city had enforced on tenants using the platform. The ordinance stated that the booking platforms used to advertise rentals or accept such offers will be required to provide a list of the transactions and fees they receive on a monthly basis. According to the ordinance, Airbnb states that this violates the First and Fourth Amendment (Airbnb vs. City of New York, 2019).

Another legal issue are the taxes that hotels or tourists are supposed to pay when staying in these cities. According to an article reporter, Airbnb wants to begin to pay occupancy taxes to be recognized as a more legitimate rental company, that is why they attend all government conferences (Mende, Molongoski, Virkler, 2016). It seems that they are trying to plead their case for following the tax guidelines in places such as New York and St. Lawrence County. A case that arose that challenged Airbnb and HomeAway to pay taxes was Gannon v. Airbnb, Inc 295 So. 3d 779. The tax collector in a Florida city filed a complaint for declaratory relief against these short-term rental companies seeking a declaratory judgment that these companies were required to pay and register as dealers to collect and remit the TDT pursuant to sections  125.0104 and 212..035 Florida statutes (2005). According to the appeal case, the court affirmed the summary judgment from the trial case. They stated that these companies that advertised these short-term vacation rental listings on their platform are not required to register as dealers and collect or remit the Tourist Development Tax (TDT) pursuant to 125.0104 and 212.0305 because the art of facilitating the room reservation process did not qualify as exercising the taxable privilege, therefore, the TDT did not apply to them. The question here that arises is whether the tax guidelines to collect and remit the TDT in the state of Florida falls on the owner or the company. According to the case, the owner is responsible for collecting and remitting this tax as the companies are not considered “dealers” in this case (Gannon v. Airbnb, Inc, 2020).

Considering Airbnb is a startup company, they still continue to face issues when issues arise that guests are injured or guests damage the property. An example of this issue when a  guest was injured is with Caroll vs. American Empire Surplus lines Insurance Co. Civil action No. 16-2589 (Ed. La 1927). The issue was that the plaintiff filed suit and claimed that they sustained injuries from the staircase that collapsed during their stay. The plaintiff and their friend rented the house in Louisiana from the owners using the website of the defendant Airbnb. In April 2015, Caroll was ascending to access the property and the wooden stairs collapsed causing the plaintiff to fall about 10 feet (Eturbo News, 2015). Carrol claims tort against the defendant owners, several alleged insurers and Airbnb. The defendant Airbnb moved for summary judgement dismissing the plaintiff claims, which argues that under Louisiana law defendant Airbnb owed no duty to the plaintiff and that Airbnb had no knowledge of the defect that caused the injury to the plaintiff, the court granted the motion (Caroll vs. American Empire Surplus Lines Insurance Co, 2015). After analysis of this case, a suggestion would be that Airbnb would need to do inventory and a walkthrough of the property with the owner to ensure the property is safe for guests. In hospitality, hotels have a standard of care towards their guests therefore so should Airbnb. In order to do so, Airbnb can have staff in urban cities who do an intake of the property to ensure the standard of care towards their guests. This would be helpful to the company to avoid any lawsuits for negligence or tort of personal injury.

Analysis

After much review of the literature, it appears to be that the short-term rental platforms are very popular, however, because it is a relatively new market, there are not many regulations in place for control of it. Much of the regulations appear to be in the local state governments who oversee the laws and enforce them. This appears to leave the responsibility up to the owner to understand the rules and taxes of their city. Although Airbnb has been trying to negotiate terms with local governments such as Barcelona, New York City, San Francisco and Miami, they have not been as successful. The issue that arises is here with the period of the rental, and how this can disrupt the housing cost. As we see in many legal battles between cities and Airbnb, they fear the owner is not present in the apartment. For example, in San Francisco they limit rentals to where the host is not present for a maximum of 90 days per year (Stephen Fishman, 2019). If the owner is found renting longer, they are fined depending on how many incidents. Therefore, in order to combat these issues Airbnb has grown their legal team substantially to assist with the rising challenges of each city.

Another issue that arises with Airbnb is how the misrepresentation of the listing can occur. The platform is very user friendly therefore it can be easy for an owner to upload a listing and create fake reviews. Therefore, tourists need to be very careful when booking a place as they should only book from super hosts and places who have 5 stars. According to the Airbnb clause, if the home is not as you expected when you check-in, tourists should contact the host immediately, contact Airbnb and check the guest refund policy to see if the cancellation would be valid and any monies owed to you.

Airbnb also appears to be impacting the hotel industry as the rates are affordable and convenient. They offer a local experience whether it be a stay or activity with a local host. This appears to be adding a unique kind of hospitality service that is more personable and authentic to the location. Airbnb claims to be the most prominent lodging company with three million listings in 2017, and a presence in more than 65,000 cities and 191 countries, overtaking hoteliers’ giants such as Marriott and Hilton (Harvard Real Estate, 2019). According to the review, hotels are not able to increase their revenue as much due to the supply of short-term rentals in the market. The convenience, cost, and efficiency of renting a home is attractive to tourists giving Airbnb a competitive advantage over hotels. Therefore, hotels are working on ways to be more attractive as Airbnb. Airbnb brands themselves with an authentic perspective from a local host, experience and stay. Therefore, hotels should try to brand themselves in such a way that comes off authentic as well. From the room to the hotel space and the complete package they offer. Brand authenticity is a pillar that hotels can build on for a strong and loyal brand relationship with customers (Gomez & Mody, 2018). Hotels can use this when rebranding themselves and their portfolio to be more authentic in their guest experience and what they offer to their guests. A few effective ways of doing so would be personalizing the stay and consistent communication throughout the stay, and using technology to supplement employees instead of replacing them.

Hospitality is a very personable industry. If hotels can find ways to use technology to supplement the experience, hotels would be able to build and keep loyal relationships with customers. Not only do hotels see Airbnb as a threat, they have attempted to enter the market to stay relative. For example, Accor purchased OneFineStay, Hyatt partnered with Oasis and Marriott partnered with Tribute Portfolio Homes (Gomez & Mody, 2018). These major hospitality companies are clearly seeking ways on how to enter the home-sharing market with these partnerships. Therefore, it is evident to learn clever ways on how these platforms are effectively creating loyal relationships with their customers.

Management Suggestions

 A few suggestions for management would be as follows:

  1. Understand the changing market dynamics – This will help to understand the needs and wants of the Hotels will need to track price strategies such as ADR/ RevPar and occupancy rates to see how the hotels in the area adjust their prices and market accordingly.
  2. Invest in resources hotels can offer – This means that hotels should highlight the resources they can Commodities such as 24/7 security, cleanliness and turn down service, immediate staff available at any time, food services (if applicable) and many more. Hotels can learn to take advantage of what they can offer to the guest and highlight those services. (Provide examples of Hotels that are showcasing this such as Locke Hotels).
  3. Promote authentic experiences – Tourists seeking Airbnb hosts are most likely seeking authentic Therefore, hotels should brand themselves with a similar approach. Airbnb hosts tend to be the point of contact for the stay, which in turn allows for a personable experience. Hotels should seek to make the hotel stay a personable experience. A way to do so would be to assign hosts to guests at check-in who can help the guests throughout their stay. This hotel staff can recommend the guest any activities and essentially be the “host” during their stay.

Conclusion 

As Airbnb continues to grow and even sell stock shares on the market, it is recognized that it will be a giant force in the hospitality industry. They will create trends and continue to challenge the hotel and hospitality industry. Therefore, hoteliers need to learn how to compete with this platform as more supply for vacation rentals becomes available and for the modern traveler, this becomes a convenient accommodation option. Hotels can rethink their brand promise and try to be more authentic with their guests. They should also try to create a memorable experience outside of the guestroom. Hotels can offer a lot more than Airbnb as they have spaces to do. If they can leverage these communal spaces (restaurants, fitness centers, bars, lobbies, poolsides, etc.), to create a memorable experience all together they can attempt a higher net promoter score and increase their brand loyalty.

References 

Airbnb, Inc. v. City of New York, 373 F. Supp. 3d 467, 2019 U.S. Dist. LEXIS 755, 2019 WL 91990 (United States District Court for the Southern District of New York January 3, 2019, Filed) https://advance-lexis-  com.ezproxy.fiu.edu/api/document?collection=cases&id=urn:contentItem:5V3X-8CW1-JF1Y-   B3RK-00000-00&context=1516831.

Barber, M.. (November 10, 2016 Thursday). Airbnb vs. the city. Curbed. https://advance-lexis- com.ezproxy.fiu.edu/api/document?collection=news&id=urn:contentItem:5M4S-01K1-JCMN- Y22F-00000-00&context=1516831.

Gannon v. Airbnb, Inc., 295 So. 3d 779, 2020 Fla. App. LEXIS 3954, 45 Fla. L. Weekly D 690 (Court of Appeal of Florida, Fourth District March 25, 2020, Decided). https://advance-lexis-  com.ezproxy.fiu.edu/api/document?collection=cases&id=urn:contentItem:5YHD-T851-F873-   B38R-00000-00&context=1516831.

Gomez, M., & Mody, M. (2018, October 31). Airbnb and the Hotel Industry: The Past, Present, and Future of Sales, Marketing, Branding, and Revenue Management. Retrieved December 11, 2020, from https://www.bu.edu/bhr/2018/10/31/airbnb-and-the-hotel-industry-the-past-present– and-future-of-sales-marketing-branding-and-revenue-management/

Hessinger, S. (December 22, 2015 Tuesday). New York Cracks Down on Short Term Rentals and Airbnb. Small Business Trends. https://advance-lexis-  com.ezproxy.fiu.edu/api/document?collection=news&id=urn:contentItem:5HNS-NDW1-JCMN-   Y4GD-00000-00&context=1516831.

Harvard Real Estate Review. (2019, January 25). A New Era of Lodging: Airbnb’s Impact on Hotels, Travelers, and Cities. Retrieved December 04, 2020, from https://medium.com/harvard-real-estate-review/a-new-era-of-lodging-airbnbs-impact-on-hotels-travelers-and-cities-   de3b1c2d5ab6

Mende, S., Molongoski, B., & Virkler. S. (November 27, 2016 Sunday). Airbnb draws tourists to north country, raises tax issues. Watertown Daily Times (New York). https://advance-lexis-  com.ezproxy.fiu.edu/api/document?collection=news&id=urn:contentItem:5M8C-8HW1-JC6P-   C0VM-00000-00&context=1516831.

New York, C. (Ed.). (2020). Stay in the Know. Retrieved December 04, 2020, from  https://www1.nyc.gov/site/specialenforcement/stay-in-the-know/information-for-hosts.pag

Sinrod, E. (October 26, 2016 Wednesday). Platforms Like Airbnb And VRBO To Thrive Or Facing Legal Reckoning?. Mondaq. https://advance-lexis-  com.ezproxy.fiu.edu/api/document?collection=news&id=urn:contentItem:5M1J-7MR1-JCMN-   Y3YG-00000-00&context=1516831.

Stephen Fishman, J. (2019, August 27). Overview of Airbnb Law in San Francisco. Retrieved December 11, 2020, from https://www.nolo.com/legal-encyclopedia/overview-airbnb-law-san- francisco.html

Eturbo News. (June 21, 2018 Thursday). Airbnb guest severely injured traversing stairs in home of Airbnb host: Is Airbnb liable? https://advance-lexis- com.ezproxy.fiu.edu/api/document?collection=news&id=urn:contentItem:5SM4-56T1-F12F- F1BB-00000-00&context=1516831.

ADA Compliance in the Hospitality Industry

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ADA Compliance in the Hospitality Industry:  Providing Accessibility for All

Introduction

Each year thousands of Americans embark on a variety of leisure and business-related trips across the country and can do so without giving much thought besides what they need to pack, what their itinerary entails, or what the weather will be like. However, for those with disabilities, it can be a much more complicated process that requires more consideration than just the weather. According to the CDC, more than 60 million adults live with some type of disability in the United States. Of those disabilities, 13.7% involve mobility issues surrounding difficulty walking or use of a wheelchair. Unfortunately, those with disabilities often face discrimination by not being able to properly access or enjoy the same amenities because of physical barriers. By the year 2030, over 70 million Baby Boomers will be over the age of 65 and may require additional products, services, or environments that address their age-related physical changes. The hospitality industry has a duty to be available and accessible to all despite any additional requirements or extra assistance someone may need. Regulations involving the physical design and construction of these hospitality venues must be followed and enforced to provide equal opportunities for everyone. This paper will offer a thorough analysis of the legal regulations passed that protect the rights of the disabled community and how it relates to the hospitality industry. It is divided into five sections that cover the following: an overview of the ADA law, a review of the specific requirements for hotel properties with references to cases pertaining to these issues, disabilities other than those associated with mobility issues, the ongoing battle between preserving historic properties and providing accessibility and finally, recommendations for hotel managers and how they can ensure their properties are accessible to all.

The Law: Americans with Disabilities Act

The Americans with Disabilities Act (ADA) was passed in 1990 by President George

H.W. Bush to specifically address the obstacles those with disabilities were facing in the country. The ADA is a civil rights legislation that prohibits the discrimination based on a disability. It was created to ensure that people with disabilities receive all the same opportunities as everyone else, including employment opportunities, purchasing of goods and services, as well as the   ability to physically access public facilities including transportation. The ADA recognizes that disabilities do not only encompass those with mobility issues but also acknowledges those with disabilities involving cognition, vision, and hearing. It defines a disability as “a physical or mental impairment that substantially limits one or more major life activities.”  Over the years, the ADA legislation has been amended to adapt to the new technologies and advancements as well as the changing needs of those with disabilities. An amendment to the legislation known as the ADA Amendments Act of 2008 was passed into law in which the government broadened the definition of “disability.” It also expanded on what constitutes as “major life activities” to  include, “caring for oneself, performing manual tasks, seeing, hearing, eating, sleeping, walking, standing, lifting, bending, speaking, breathing, learning, reading, concentrating, thinking, communicating, and working, as well as the operation of several specified major bodily functions.”  The United States Department of Justice (DOJ) regulates and enforces the ADA on a federal and state level. In addition to the DOJ, there are other agencies able to enforce the compliance of ADA such as The Department of Labor, The Equal Employment Opportunity Commission, The Department of Transportation, and the Federal Communications Commission. When violations occur, individuals or entities may file a claim against the offending establishment or person. These cases can be addressed at the local government level or be  brought to federal court if necessary.

The Americans with Disabilities Act consists of three sections or “titles” that address different areas of equal opportunities. Title I protects those with disabilities from discrimination regarding employment and job application procedures. Title II is regarding the nondiscrimination in State and local government level. This includes local school districts, public transportation, public or government assisted housing and any other state or local government services or facilities. Title III prohibits disability discrimination from all public accommodations and commercial facilities. This extends to anyone who owns, leases, or operates a place of public accommodation. Public accommodations include places of lodging, restaurants, recreation, spas, theaters, galleries, night clubs and retail stores. Title III applies to both new construction buildings as well as existing structures. All businesses that serve the public must provide equal opportunity for customers with disabilities.

Providing Accessibility in the Hospitality Industry

Because the hospitality industry falls primarily under the Title III restrictions, it has the responsibility to provide “full and equal enjoyment of all goods, services, facilities, privileges, advantages and accommodations.”  This encompasses not only the physical ability to enter or use a facility but also being able to partake in the same recreational activities or business-related tasks as everyone, such as sharing a drink at a bar with a friend, checking into a hotel, enjoying a meal with family in a dining facility or working in a large office environment. The physical design and construction of a hospitality establishment is the predominant area of focus when it comes to providing accessibility. The ADA Standards for Accessible Design are found under Titles II and III of the ADA and include detailed requirements regarding new construction, alterations, program accessibility and barrier removal. Providing proper entrance ramps, door clearances, and accessible restrooms are just a few basic examples of ways a building can be compliant. The ADA Standards were first included in the original 1990 passing of the regulation. The most current set of enforceable regulations are the 2010 ADA Standards of Accessible Design. The Standards state that any building built after 1992, must be accessible and usable by everyone. If an older building built prior to 1992 undergoes any type of renovation, the entire facility must be brought up to ADA compliance even if it was not an area initially being renovated.

When dealing with the construction of a new building, it is required that the owner, operator, architect, designer, and entire construction team adhere to the ADA Standards to make the building accessible. This is the best opportunity to plan for accessibility and avoid architectural barriers that people with disabilities typically face in older buildings. It is important to consider not just those with mobility disabilities but also those with vision impairments, hearing disabilities and even those with limited dexterity or grasping ability. Some examples of accessible requirements in a new building are: accessible parking sports, accessible sales and service counters, accessible public restrooms, accessible routes and accessible recreational  spaces. If a new building is not constructed to be ADA accessible, the owner and operator of the establishment are opening themselves up to lawsuits and claims for discrimination against disabled people. In United States v. Days Inn of America, the government brought a lawsuit against the owner, operator, and brand of a Days Inn hotel for violating the ADA compliance requirements of the newly constructed structure in Champaign, Illinois. Days Inn entered into a licensing agreement with Panchel & Patel Inc. for the construction of the new hotel. The  licensing agreement requires the licensee to obtain approval from Days Inn of America to begin any construction and to involve them in the design and construction process so that they may review and comment on the individual plans. Days Inn requires all their properties to be ADA accessible and details the minimum requirements in their Planning and Design Standards   manual. All licensees must receive corporate approval of all plans to ascertain initial compliance with Days Inn standards. Despite consistent involvement from all parties during the planning and construction process, which included thorough reviews of the drawings and several onsite inspections of the building, the hotel still had multiple violations of ADA. The courts found that because Days Inn of America was involved in the review, they were still liable for the violations.

Accessibility in Hotel Guestrooms and Public Areas

ADA accessibility in lodging accommodations encompasses not only the public areas such as lobbies, bars, and meetings spaces, but also the guestroom itself. The ADA Standards provides a detailed list of requirements for a hotel guestroom to be considered compliant. It is required for the hotel to have a specific number of ADA compliant rooms and an equal disbursement of ADA rooms across the various room types such as suites. In the ADA rooms, the main requirement is to have an accessible bathroom complete with either a roll in shower or accessible tub with ADA seat. In the shower itself, plumbing fixtures and safety grab bars must be installed at specific heights and locations so that a disabled person can access them and be able to transfer themselves in and out successfully either alone or with assistance. Various other clearances, such as a 60” turning diameter of clear floor space, must be provided in the restroom to allow for a wheelchair to move about the space and to permit the guest to use each restroom function. 12 There are also specific ADA requirements surrounding the toilet height as well as clearance under the vanity sink. In the bedroom portion, the remaining furniture in the space should allow for ease of mobility throughout the path of travel within the room and should provide sufficient clearances to access all elements.13 Overall, the guestroom experience should be the same as for someone with no disability. The design and construction of the guestroom is required to allow the guest the same access to amenities so that there is no feeling of a lesser quality room.

Before entering the guestroom, the guest needs to travel through the initial hotel check in procedures. Every step of the way needs to be accessible, from accessing the entry through a ramp, to going through the main entrance doors with proper clearance and moving through the accessible route with no barriers to get to the hotel reception. ADA Standards require all sales and service counters to be accessible. This requires there to be a lower counter at 34” separate from the main transaction counter as well as providing appropriate knee clearance under any surface top for a wheelchair to be able to roll under from either a front or a side approach. In addition to the hotel reception, accessibility must be provided throughout all public areas including lobby lounges, restaurants, and bars. Providing access to all types of gathering areas including lounge seating, dining and bar tops is detailed in the ADA Standards. A bar at a restaurant or lobby lounge must have an accessible counter at a specific lowered height so a person in a wheelchair may be able to sit and enjoy among everyone else.15 Other examples of areas in public accommodations that must be accessible include swimming pools, spas, and public restrooms.

If a hotel or lodging establishment fails to be accessible, the potential for lawsuits is strongly probable. An example of one such lawsuit is Access 4 All, Inc. and Peter Spalluto v. The Atlantic Hotel Condominium Association, Inc. and Luxury Resorts International, Inc. In this  case, the defendant, Peter Spalluto was represented by Access 4 All, a nonprofit organization that represents the disabled community and is comprised of people with disabilities. Together, they filed a lawsuit against the Atlantic Hotel Condominium Association for failing to eliminate physical barriers throughout their property and restaurant. They claimed the defendants violated the Title III of the ADA that specifically requires all public accommodations to be accessible to all. The Atlantic Hotel Condominium is a hybrid hotel and condo association with rental units.   Its common areas, such as the lobby, parking, pool and elevators, are shared by both hotel guests and residence owners. Spalluto, who is a quadriplegic and uses a wheelchair, was visiting the hotel’s restaurant and had rented a room for the evening. During his stay at the restaurant and the hotel, he experienced multiple barriers that prohibited him from enjoying the facilities due to his disability. At the start, there are only two public entrances to the hotel, only one is accessible which is the main circular driveway entrance at the lobby. There was not a secondary accessible entrance and the means of egress to reach the emergency fire exits were not accessible. Spalluto requested a two-bedroom unit at the time of his reservation. There is only one two-bedroom unit in the property, and it is not ADA accessible. There was not an appropriate disbursement of   ADA rooms among all room types in the hotel. According to the ADA, for every unique room type in a hotel provided, there must be one ADA version of that room type available. Because   the two-bedroom unit was not ADA compliant, he could not use the bathroom or shower. He was also unable to access the balcony terrace due to the construction of the sliding doors prohibiting him from crossing over the threshold. Additionally, the reception check in desk, restaurant bar and pool bar all had countertops that exceeded ADA heights which prohibited Spalluto from using them without separate assistance. At the conclusion of the case, the Courts ruled in favor of the plaintiffs and required the Atlantic Hotel Condominium Association to address all the barrier and ADA compliance issues at the property.

Accessibility for Non-mobility Related Disabilities

The Americans with Disability Act also advocates for those with disabilities other than mobility related conditions and the hospitality industry must provide access to those with disabilities of all types. The vision and hearing impaired are also protected under the regulation and require their own accommodations. Individuals who are blind use their sense of touch to access information. They may need the assistance of braille to read any written signs. Those who have low vision may request close vision interpreters, large print materials, or assistive listening devices.17 The ADA also has specifications requiring a high contrast between lettering and backgrounds as well as braille lettering on all hotel room signage and wayfinding signs to aid those with vision impairments. Auditory and spoken information needs to be accessible to people whose disabilities affect communication, including people who are Deaf or hard of hearing.

Individuals who have difficulty hearing rely on their vision to access auditory information, and may require the use of captions, Communication Access Realtime Translation (CART), and sign language interpretation. 18 The use of a visual alarm system, such as strobe lighting in fire alarms, is required throughout all common areas and guestrooms for this reason. Some other examples of auxiliary aids and services for deaf people include telephones compatible with hearing aids, text telephone devices, and closed captioning on all TV’s and video displays.

ADA vs Historic Buildings: Preserving America’s History

The easiest and most opportune time to incorporate barrier free design and ADA requirements is when dealing with new construction of a building. However, because the ADA did not pass into law until 1990, there are many buildings still standing today that were built  prior to the establishment of this regulation and therefore, are not accessible. There are many misconceptions as to whether alterations to historic or older properties are required to comply with the ADA, and if so, to what extent. Despite the age of the building, it is still required that all facilities that fall under Title II and III of the ADA eliminate all architectural and communication barriers where removal is readily achievable. 20 There is no “grandfather clause” that excuses an older building from meeting these standards. Alterations must comply with the ADA Standards unless it is technically infeasible to do so. Something is technically infeasible only if it would require removing or altering a load-bearing member that is an essential part of the structural frame, or because other physical constraints prevent modification or addition of features to comply with the ADAAG requirements.21 The ADA recognizes that not all specifications will be able to be incorporated into an existing historic building, which is why they provide a list of minimum requirements. Some of the minimum requirements include: providing a minimum of one accessible route from the site to an accessible entry, at least one accessible entry shall be provided, if toilets are provided, at least one toilet on an accessible route must be provided (a single unisex restroom may be used.), an accessible route shall be provided to all public spaces at the level of the entry, and displays and written information must be viewable by a seated person, including horizontal displays at 44″ maximum.

Older cities across America, such as Boston, Massachusetts, that were built in the seventeenth century, are home to many historical landmarks that are preserved and protected. In Robert Engel’s law review article titled, “The Americans with Disabilities Act and its Effect on Historical Preservation and Public Transportation,” he dives into the ongoing battle between the historic preservation societies and the ADA regulations. A large area of concern to the preservation community is how to provide accessibility in historic properties without compromising or destroying the historic significance of a feature of the building. These buildings are protected by the National Historic Preservation Act that was enacted by the National Park Service. The mandate requires that if any renovation or rehabilitation work is to be done to meet compliance, it must be done while still retaining the property’s historic character. There is one exception that the ADA Standards provides for the very rare occasion when pertaining to  National Historic Landmark properties. It states, “…in the occasional case where the nature of an existing facility makes it virtually impossible to comply fully with applicable accessibility standards through a planned alteration…, the alteration shall provide the maximum physical accessibility feasible.” The same minimum requirements described in the previous paragraph would apply to the historic buildings as well. Robert Engel continues in his article to describe how the ambiguous language regarding the application of ADA to historic properties has led to organizations interpreting the regulations in favor of preserving the architecture of a building and not necessarily prioritize the accessibility requirement. Because of this, the courts established the “Colorado Cross test” based on the case Colorado Cross Disability Coalition v Herman Family Ltd. In this case, the plaintiff was paralyzed from the chest down and required the use of a wheelchair. The plaintiff filed a suit to add four ramps to a historical block of Larimer Square in Denver, CO. To resolve the conflicts between disability rights and historical preservation, the Tenth Circuit created the Colorado Cross test. It requires that when a plaintiff brings a cause of action against a historical site for failure to meet ADA requirements, they have the responsibility to establish that the barriers preventing accessibility exist and that the method of removal of the barriers is readily available. The Tenth Circuit declared that each case should be ruled on the unique facts presented by the barrier and the historical landmark presented in the case. This precedent is still used today as reference to determine other cases involving historic properties.

Recommendations for Hotel Managers

The American Hotel and Lodging Association supports the protection of the rights of those with disabilities by ensuring that hotels are compliant. They have championed for the disabled community and have worked with hundreds of lodging establishments to ensure that their properties are compliant. As a manager of a hotel, it is imperative that the property is ADA compliant in all areas. Conferring with a third-party ADA consultant to conduct a survey of the property is a great starting point to assess if the property meets the requirements. Being proactive and addressing any concerns instead of waiting for a claim or suit to be filed is recommended. As a manager of a hotel, it is important to also be up to date on any amendments or changes to the law. While a formal legal amendment may not be passed every year, there are still ongoing changes as the world adapts to the new advancements. Participating in conferences or conventions surrounding ADA accessibilities and new technologies is one way a hotel manager can stay current on the issues. The ADA National Network is a great resource that provides hotel managers access to information regarding operations, employment, and training. They have also set up ten regional ADA Centers throughout the United States that host events that promote furthering education and protocols regarding ADA accessibility in the hospitality industry.26 Training all staff to know about all the features in an ADA guestroom and how to work any  ADA components such as a pool lift, electronic ramps or TTY devices is a considerable way to ensure that a guest can receive the same level of service as anyone else. The American Hotel and Lodging Association also provides programs to help educate managers and team members on how to better serve those with disabilities.

Conclusion

In summary, the Americans with Disability Act, although officially passed only thirty years ago, has shed light on a major crisis in our country that has existed for well over 100 years. It has been an instrumental piece of legislation in providing accessibility and inclusion to the disabled community. The hospitality industry has the responsibility and duty to be accessible to everyone, regardless of any disabilities or impairments. By providing properly designed environments that follow the ADA regulations, these establishments can be enjoyed by all.

Works Cited

 Access 4 All, Inc. v. The Atl. Hotel Condo. Ass’n, Inc., 2005 U.S. Dist. LEXIS 41601, 2005 WL 5643878 (United States District Court for the Southern District of Florida November 22, 2005, Filed ). https://advance-lexis-  com.ezproxy.fiu.edu/api/document?collection=cases&id=urn:contentItem:4JS1-KK20-   TVTD-0277-00000-00&context=1516831

CDC. “Disability Impacts All of Us Infographic.” September 16, 2020. https://www.cdc.gov/ncbddd/disabilityandhealth/infographic-disability-impacts- all.html#:~:text=61 million adults in the highest in the South.

Chris. “ADA Requirements for Hotels – 2014.” June 29, 2014. Accessed December 2020. https://ada-pros.com/ada-requirements-for-hotels-2014/#:~:text=ADAAG requires at least 4,or hard of hearing individuals

Civil Rights Division, US Department of Justice (2009). “42 U.S. Code § 12102 – Definition of disability, Americans with Disabilities Act of 1990, As Amended”

Civil Rights Division, US Department of Justice (2009). “42 U.S. Code § 12182 – Prohibition of discrimination by public accommodations, Americans with Disabilities Act of 1990, As Amended”

EEOC (2008). “Americans with Disabilities Act Amendments Act of 2008, PL 110-325 (S 3406)”. eeoc.gov

Endelman. “Historic Buildings and the ADA.” https://www.endelman.com/our-practice/best-  practices/historic-buildings-and-ada.

Engel, Robert M. (2013). NOTE: The Americans with Disabilities Act and its Effect on Historical Preservation and Public Transportation. Health & Biomedical Law Society, 9, 297.  https://advance-lexis-com.ezproxy.fiu.edu/api/document?collection=analytical-   materials&id=urn:contentItem:58VX-GKT0-0240-Y08D-00000-00&context=1516831

“Hospitality & Disability: Operations.” 2020. https://www.adahospitality.org/content/Operations.

Kailes, June Isaacson, and Darrell Jones. “A Guide to Planning Accessible Meetings.” 1993. Accessed December 2020. https://www.adahospitality.org/accessible-meetings-events- conferences-guide/book.

Kelley, Gail S. “ADA Requirements for Historic Properties.” November 2014. https://www.structuremag.org/?p=7540.

Parrott-Sheffer, Chelsey. “Americans with Disabilities Act.” Encyclopedia Britannica. Accessed December 2020. https://www.britannica.com/topic/Americans-with-Disabilities-Act.

Terndrup, William. “How Is ADA Enforced?” March 17, 2020. https://adatile.com/how-is-ada- enforced/.

United States v. Days Inns of Am., 997 F. Supp. 1080, 1998 U.S. Dist. LEXIS 3269, 7 Am.

Disabilities Cas. (BNA) 1617 (United States District Court for the Central District of Illinois, Urbana Division March 16, 1998, Filed). https://advance-lexis-  com.ezproxy.fiu.edu/api/document?collection=cases&id=urn:contentItem:3S8Y-WV20-   0038-Y4F8-00000-00&context=1516831.

United States. Department of Justice. Civil Rights Division. 2010 ADA Standards for Accessible Design. 2010. § 608 Shower Compartments

— § 304.31 Turning Circular Space

— § 36.403 Alterations: Path of travel.

— § 904.4 Sales and Service Counters

— § 206.2.5 Restaurants and Cafeterias

— § 36.405 Alterations: Historic preservation

— § 36.402 Alterations: To the maximum extent feasible