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.

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Coming up in November 2018...

Architecture & Design: Expecting the Unexpected

There are more than 700,000 hotels and resorts worldwide and the hotel industry is continually looking for new ways to differentiate its properties. In some cases, hotels themselves have become travel destinations and guests have come to expect the unexpected - to experience the touches that make the property unlike any other place in the world. To achieve this, architects and designers are adopting a variety of strategies to meet the needs of every type of guest and to provide incomparable customer experiences. One such strategy is site-integration - the effort to skillfully marry a hotel to its immediate surroundings. The goal is to honor the cultural location of the property, and to integrate that into the hotel's design - both inside and out. Constructing low-impact structures that blend in with the environment and incorporating local natural elements into the design are essential to this endeavor. Similarly, there is an ongoing effort to blur the lines between interior and exterior spaces - to pull the outside in - to enable guests to connect with nature and enjoy beautiful, harmonious surroundings at all times. Another design trend is personalization - taking the opportunity to make every space within the hotel original and unique. The days of matching decor and furniture in every room are gone; instead, designers are utilizing unexpected textures, mix-and-match furniture, diverse wall treatments and tiles - all to create a more personalized and fresh experience for the guest. Finally, lobbies are continuing to evolve. They are being transformed from cold, impersonal, business-like spaces into warm, inviting, living room-like spaces, meant to provide comfort and to encourage social interaction. These are a few of the current trends in the fields of hotel architecture and design that will be examined in the November issue of the Hotel Business Review.