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Hotels employ RFID technology to curb linen theft

Hotels employ RFID technology to curb linen theft
Research
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Gary Leff Chief Financial Officer | View from the Wing

One hotel in Europe has taken a stringent approach to prevent towel theft by informing guests that all towels are equipped with an invisible, localizable RFID chip. The hotel's management warns that if the towels do not remain in the apartment, they reserve the right to report the incident to relevant authorities, with fines ranging from €300.00 to €15,000.00.

Hotels have been embedding RFID chips in towels for over a dozen years as a deterrent against theft. One hotel reportedly saved $16,000 per month by reducing its towel thefts from 4,000 down to 750 after attaching washable RFID tags to its towels. The mere knowledge of these tags' existence appears sufficient to deter potential thieves.

The financial impact of such measures is significant but does not scale proportionally across the industry due to varying towel quality and replacement rates among hotels. Nevertheless, there remains substantial money involved in hotel linen management.

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Instances of severe consequences for towel theft include a case at the Nairobi Hilton where an individual received a two-year sentence for stealing two towels. Historical efforts like IHG's 'towel amnesty day' aimed at curbing such incidents suggest that towel theft might be less common today due to modern travel constraints like checked bag fees.

However, guests often steal more than just towels. Five-star hotels frequently report higher-value items being taken – including tablet computers, artwork, TVs, and even mattresses. A study revealed that guest nationality influences what items are stolen: Germans and Brits mainly take towels and toiletries; Austrians prefer dishes and coffee machines; Americans often steal pillows and batteries; Italians favor wine glasses; while French guests target TVs and remote controls.

Forty-nine hotels reported mattress thefts over two years, though actual numbers may be higher as many hotels do not disclose such incidents publicly. In 2018, a family was caught on video in Bali with numerous stolen items packed in their luggage during an inspection.

Remarkably audacious thefts have also been reported: grand pianos from Sheraton lobbies, televisions from rooms, carpets, light fixtures, curtains, mirrors – even door hinges and fireplaces have been stolen from luxury establishments like the Four Seasons Beverly Wilshire.

While skepticism exists regarding efforts to combat towel theft specifically within hospitality bounds it makes economic sense for hotels aiming to reduce losses through innovative measures like RFID tagging.

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