Hotel Data Security: Types, Threats & Best Practices

Hotels are more than just places to rest your head; they are information sources that can collect vast data for creating unique experiences for customers and managing hotel operations.  

Let's check some of the crucial data of guests collected by hotels.

1. Personal Information

Some of the information you provide during your account creation may include personal details like your name, address, phone number, and email.  

Hotels do so to acquire reservations, transportation and communication facilities, and guest reports.

2. Payment Details

A guest gives credit card details in the booking, paying for the services, and incidentals. A hotel must ensure that the method of handling payment data is safe to avoid fraud and unauthorized access.

3. Booking History

Using a hotel guest's past reservation data, room preferences, special requests, and loyalty program participation history, the hotel can determine the guest's profile.  

That data is used to individualize future trips and create personalized offers based on customers' unique preferences. 

4. Stay Preferences

Hotels automatically track guest preferences like room size, bed size, floor, and room facilities when the guests are checking in.  

This data is the insight that can be used to help accommodate one's individual needs and enhance the quality of the entire experience. 

5. Geolocation Data

Through contactless check-in and apps, hotels gather location data to watch the position of guests around the property.  

Geolocation data, for example, have the advantage of being efficient in-service delivery and suggesting location-based recommendations though it can raise privacy issues that hotels ought to address. 

Let's look at some, 

Common Hotel Data Security Threats

The hotel industry is very sensitive and confidential, therefore, keeping clients’ sensitive information safe is very critical to the hotel industry.  

The huge number of people assigned to guest accounts or even transactions makes hotels by far the most popular targets for hackers. 

Now, we are going to turn to the primary risk hotels face regarding data protection. 

1. Hacking & Malware

'When you check into your favourite hotel, you could learn that someone hacked into your credit card account afterwards. 

The risk of breaches and viruses is one of the most critical issues for hotels.

Criminals get into the network of hotels or booking systems with their vulnerable spots to access the information they need without permission. 

2. Easy Passwords and Open Wi-Fi Points

Password usage with a weak password is just another opportunity offered to hackers to enter and attack.  

These hotels are still vulnerable to hackers using weak passwords. This in turn provides hackers with an easy in and helps them in compromising the data of guests. 

In addition to that when unsecured Wi-Fi is available, hackers can try to look at everyone's online activity. 

3. Phishing Attacks

Phishing attacks target people's weaknesses, not computer failure. The hotel staff as well as the guests can be tricked by emails or messages which appear to be real but ultimately are intended to steal passwords or infect computers with bad software. 

4. Physical Security Gaps

Though most discussions include online threats, the physical side of security is also essential.  

Physical intrusions, for example, guests' missing devices and documents showing off confidential information, can create serious problems that could be harmful to guests and the hotel. 

To avoid common data security threats, as we discussed above, the Hotel must do some of the best practices to prevent data from being stolen. 

Best Practices for Hotel Data Security

1. Guest Data Protection

Hotels manage various information from guests, including names and delivery addresses to credit card information.  

Preventing misuse of this information is a must. Putting encryption techniques in place ensures that private data is not shared with unauthorized persons.  

For example, hotels can encrypt guest information in transit as well as rest which reduces the chances of unauthorized access. 

2. Access Control Measures

Website owners need to limit guest data access. Unauthorized persons only may have access to confidential or sensitive information.  

By using the role-based access control (RBAC) method, hotels can limit data access based on job characteristics.  

On the contrary, this implies that the front desk staff would have less chance to view financial records hence they will not have access to financial records, but this does not mean that data breaches will be eliminated. 

3. Regular Audits and Updates

Technology advances fast and it is not surprising that cybercrime does so too.  

In the long run, the audit searches for potential gaps and weaknesses in the hotel's data security system.  

In addition, keeping software patches and security updates that protect systems from newly discovered threats is an effective way to keep the systems robust against new attacks. 

Also Read - Hotel Data Analytics

4. Guest Consent and Transparency

Transparency increases trust. Hotels need to obtain explicit agreement from guests on behalf of data collection.  

To achieve this goal, the organization must explain in simple and clear terms how the data will be used and for which purposes.  

Another case in point is the hotels which might seek permission in the form of sending promotional emails to guests or sharing guest information with third-party vendors for services. 

5. Employee Training

Human mistakes are possibly the biggest factor that the breaches. Besides that, employee training on data security practices is critical.  

A data breach is less likely to happen when training and certification programs are robust, and cyber threats are recognized as phishing emails, and the guest data is handled responsibly. 

Let me tell you about some past hotel data privacy breaches:

1. Marriott International (2014-2018)

Cybercriminals stole the records of 300 million guests including their passport numbers and other data years ago.

2. Choice Hotels (2014)

Over 49 million guest records were exposed on an unsecured database containing names, addresses, and contacts. 

3. Taj Hotels (2023)

The data leak, which collected the personal information of about 1.5 million guests, such as names, email addresses, and reward program info, was caused by it.

4. MGM Resorts (2019)

The hackers' attack was aimed at getting information about 10 million users, which may also include bank card details. 

According to the report of Hotel Management Net.  approximately 31% of data breaches are associated with hospitality companies.

Understanding GDPR

The General Data Protection Regulation (GDPR) is a European Union legislation that looks at how personal data is gathered, used, and stored.  

If your hotel works in the EU or if it deals with EU guests, you should apply the GDPR terms. 

Key aspects of GDPR

• Hotels must acquire clear consent from guests before using their data.
• The guests have the right to access their data, and the opportunity to correct errors and remove the data if they so wish. 
• Hotels should report to authorities in at most 72 hours after detection of data breaches. 

Not complying with the GDPR may lead to substantial fines hence one must stick to the rules and regulations.

Conclusion

In the hotel business, keeping guest information safe isn't just about following rules—it's about earning trust and making guests happy.   

When hotels make data security a top priority, they make sure guests feel safe and satisfied. This builds loyalty and helps hotels succeed in the long run.  

We at BOTSHOT know the value of Data security, and that's why we provide fully secured tailored hotel management services for hoteliers.

Its cloud-based server, one-stop, reliable, customizable, and scalable with a 24*7 support system and maintenance makes it irresistible to implement.  

From front desk management to inventory management BOTSHOT covers all at a cost that significantly increases the ROI of your hotel.  

So, what are waiting for schedule a demo now, and see for yourself how our software maximizes your growth.