The downturn in the economy has led hospitality entities to seek alternative methods for cutting back expenses to remain a viable business and maintain a competitive advantage. One hotel chain, Hyatt Hotels Corporation, in September 2009, chose to replace its entire housekeeping staffs at its three Boston area hotels with employees from an outsourced company contracted at a lower pay scale. The hotel’s decision to lay off its entire staff was possible due in part to a protection not provided to the employees by a local union affiliation. The local union has partnered with the employees, however, to picket at one of the hotels, the downtown Boston Hyatt. Hyatt Hotels Corporation contends that it will provide the fired staff with healthcare coverage through the end of the year and two weeks pay, plus one week of pay for every year worked at the Hyatt up to ten years. The rift with the city and the hotel led to a major rally two weeks after the firings at the Hyatt Regency Boston attended by US politicians, local and regional residents, and hospitality workers highlighted by a statement from the mayor to boycott the Boston area Hyatt Hotels. The rally as well as a newly created online petition to boycott Hyatt Hotels, led Hyatt PR to issue a statement one week after the rally suggesting that a boycott of its Boston properties would endanger the livelihood of its existing associates.
Emerging technologies such as the online petition board/blogspot, and online news websites have led corporations to determine new methods of countering negative publicity which have become widespread through these avenues. Hyatt Hotels corporate online statement response one week after the Boston Hyatt boycott may not necessarily counter the online boycott forum and news blogs, however it provides the hotel chain’s detractors with an alternative forum displaying the positive attributes of the company. The online statement may draw enough support to bring Hyatt Hotel supporters out to counter the negative publicity currently plaguing the corporation. The future will determine the effectiveness of Hyatt Hotel’s online counter to the online Boycott forum by a decline/stagnation or increase in the local Boston Hyatt hotels' revenues and or occupancy.
Hyatt Hotels Online Boycott Blog/Petition
Boston.com "A Hard Ending for Housekeepers" Article
Boston.com. “Hundreds Attend Rally for Fired Hyatt Housekeepers” Article
Hyatt Hotels Corporation Statement Regarding Massachusetts Governor’s Proposed Boycott
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Hotel is a building in which lodging and other services, often board, are provided primarily to transients and, less often, to permanent residents.
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