In a Hotel Data Breach, Immediate Response is the New Normal

By Kurt Meister Senior Vice President , Distinguished Programs | April 01, 2018

If you haven't heard about the latest data breach to hit a major hotel chain, just do a quick internet search. In 2017, the number of U.S. data breaches hit an all-time high of 1,579, up 45 percent from 2016, according to the Identity Theft Resource Center.   And hotels are a prime target. Verizon's 2017 Data Breach Investigations Report ranks accommodations (hotels and restaurants) as the top industry for point-of-sale (POS) intrusions.

Each data breach creates its own unique set of headaches. One is financial cost. From 2014-17, the average costs of POS-related investigations averaged $735,000 and grew larger (as high as $17 million) based on the size of the organization, according to NetDiligence.  

Reputation damage is equally concerning. Consumers expect hotels – and all businesses – to protect their data no matter what. And when a data breach occurs, they expect immediate action, often faster than the six-to-eight weeks allowed under most U.S. laws.

For many hotels, the question is no longer if a data breach will occur, but when. That's why hotel owners, operators and franchises must be protected and prepared.

Evaluate Your Risks

Because the U.S. hospitality industry attracts millions of guests each night – and because those customers pay for almost everything with a credit card – cybercriminals see hotels as a potential windfall.

Choose a Social Network!

The social network you are looking for is not available.

Close

Hotel Newswire Headlines Feed  

Michael DiLeva
Paul van Meerendonk
Fred B. Roedel, III
Michelle Wohl
David DeMoss
Gini Dietrich
Steve Kiesner
Jed Heller
John Tess
James Downey
Coming up in December 2018...

Hotel Law: New Administration - New Policies

In a business as large as a hotel and in a field as broad as the law, there are innumerable legal issues which affect every area of a hotel's operation. For a hotel, the primary legal focus includes their restaurant, bar, meeting, convention and spa areas of their business, as well as employee relations. Hotels are also expected to protect their guests from criminal harm and to ensure the confidentiality of their personal identity information. These are a few of the daily legal matters hotels are concerned with, but on a national scale, there are also a number of pressing issues that the industry at large must address. For example, with a new presidential administration, there could be new policies on minimum wage and overtime rules, and a revised standard for determining joint employer status. There could also be legal issues surrounding new immigration policies like the H-2B guest-worker program (used by some hotels and resorts for seasonal staffing), as well as the uncertain legal status of some employees who fall under the DACA program. There are also major legal implications surrounding the online gaming industry. With the growing popularity of internet gambling and daily fantasy sports betting, more traditional resort casinos are also seeking the legal right to offer online gambling. Finally, the legal status of home-sharing companies like Airbnb continues to make news. Local jurisdictions are still trying to determine how to regulate the short-term apartment rental market, and the outcome will have consequences for the hotel industry. The December issue of Hotel Business Review will examine these and other critical issues pertaining to hotel law and how some companies are adapting to them.