Tough guests, smart moves: helping employees navigate challenging hospitality encounters

Purpose The purpose of this research is to address the growing issue of guest misconduct and fraudulent behaviour within the hospitality industry. It seeks to raise awareness of the negative impact these behaviours have on employee morale, retention and organisational performance, while challenging the outdated maxim that “the customer is always right.” By engaging frontline staff and leaders through workshops and thematic analysis, the research aims to develop practical tools, including a behavioural checklist and RED/AMBER/GREEN model, to empower employees, safeguard revenue and foster safer, more supportive working environments. Design/methodology/approach This research adopted a qualitative case study approach across three luxury hotel properties within the same collection, involving 112 employees from multiple departments and seniority levels. Data were collected through structured workshops, where participants discussed experiences of handling challenging guest behaviour and identified patterns of suspicious activity. Narratives were analysed using thematic analysis, generating five key themes related to guest misconduct and payment behaviours. The findings informed the co-creation of a behavioural checklist and RED/AMBER/GREEN guest model, developed in collaboration with a retired senior police officer to ensure operational relevance, legal compliance and practical applicability within hospitality settings. Findings The research revealed that challenging guest behaviours, including fraud, intimidation and unreasonable complaints, were significantly undermining staff morale, retention and revenue. Thematic analysis identified five recurring areas of concern: guest interactions and staff awareness, guest identity and behaviour, payment security, booking patterns and high-value transactions. Staff reported inconsistency in handling incidents, lack of confidence and limited managerial support, reinforcing a culture of vulnerability. Implementation of the behavioural checklist and RED/AMBER/GREEN model led to tangible benefits, including reduced fraudulent compensation, improved cross-departmental communication, over £10,000 in revenue protection and enhanced staff confidence, empowering employees to manage challenging encounters effectively. Research limitations/implications This study was conducted within three luxury hotels of a single collection, which may limit the generalisability of findings across other hospitality sectors such as budget hotels, independent operators or international markets. The sample relied on self-reported experiences, which can introduce bias and subjectivity. Nonetheless, the outcomes highlight significant industry-wide issues requiring further investigation on a national scale. The practical tools developed – namely the behavioural checklist and RED/AMBER/GREEN model – offer immediate applicability for Hospitality operators. Wider adoption and further research could support the development of a consistent, sector-wide framework that balances guest satisfaction with employee well-being and financial resilience. Practical implications The research provides Hospitality operators with actionable tools to better manage challenging guest behaviour while maintaining service standards. The behavioural checklist offers frontline staff clear, consistent guidance on identifying suspicious activity, handling aggressive or fraudulent behaviour and ensuring secure payment practices. The RED/AMBER/GREEN model supports decision-making by categorising guest conduct and providing proportionate responses, reducing reliance on managerial intervention. These tools not only safeguard revenue but also improve staff confidence, morale and retention. Adoption across the sector can foster safer working environments, strengthen operational resilience and promote a cultural shift away from outdated service mantras. Social implications This research contributes to creating safer, more respectful working environments within the hospitality industry by equipping employees with the confidence and tools to manage guest misconduct. By addressing incivility, fraud and intimidation, the findings support improved staff well-being, morale and retention, reducing the negative personal and professional impacts often faced by frontline workers. A shift away from the culture of fear and silence empowers employees to uphold boundaries without compromising service quality. Wider adoption of these practices can strengthen community trust in hospitality businesses, promote fairness in guest–staff interactions and ensure the industry remains an attractive and sustainable employer. Originality/value This research is distinctive in directly addressing guest misconduct and fraud from the perspective of frontline hospitality employees, a group often overlooked in strategic decision-making. Unlike existing policies that focus primarily on harassment or general service standards, this study provides industry-specific, practical tools co-created with both practitioners and law enforcement expertise. The behavioural checklist and RED/AMBER/GREEN model offer a replicable, standardised approach that empowers employees, strengthens organisational resilience and ensures legal compliance. By challenging the outdated maxim “the customer is always right,” the research advances a new, staff-centred framework that balances guest satisfaction with employee well-being and financial sustainability.