Security of Guest Data Worries Hotel Technology Executives
The Hotel Technology Next Generation North American members meeting held in San Diego last month gave attendees an inside look at what keeps the industry’s top C-level technology executives awake at night. IT leaders from Hyatt, Starwood, Marriott and other companies put the spotlight on what is required from technology suppliers to earn their keep. HTNG has more than 2,500 members representing 400 hotel companies and tech vendors.
At their recent meeting, members of HTNG discussed data security, revenue management, Chinese tourism and other topics.
The executive panels during the three-day event called for tighter security for guest data and wider use of revenue management technology and strategy. Also, Mandarin Oriental’s CIO/CTO Nick Price also offered insights on how hotels can attract their share of the coming wave of Chinese tourism.
One of the strongest calls to action came during the CIO panel and was on the topic of security. PCI compliance is a hot subject since 38% of all data incursion attempts are directed against the hotel industry. Todd Thompson, Starwood’s CIO, offered those sobering statistics, noting 50% of his time is spent on processes surrounding PCI and data security. Other panel members reminded attendees that staff security training is essential since many aspects of data security relate to the physical storage of guest data on registration cards and other documents. Hyatt CIO Mike Blake said training and monitoring staff and developing and overseeing property-level data storage were harder than PCI technology matters.
Panel members observed that security extends beyond guest data to the physical safety of guests. Prakash Shukla, SVP of technology and CIO of the Taj Group of Hotels, reminded the audience the recent terrorist attacks directed against hotels and uprisings in Asia and the Middle East make guest security a life-and-death matter in much of the world.
Industry executives also told the audience while demand is stronger in many markets, ADRs remain flat. The group said these conditions make it clear operators must implement effective revenue management and consciously focus on raising rates whenever possible.
More than two million Chinese travelers are likely to visit the U.S. in the next few years, said Price of Mandarin Oriental. China, i.e., the Peoples Republic of China, is now the largest consumer of Bordeaux wine and the number-one automobile purchasing nation in the world. China’s exploding middle class is flexing its purchasing muscle and looking at the U.S. for its next vacation.
Mandarin Oriental’s Nick Price explored the tourism potential of China for U.S. hotels.
Price cited a recent study that shows the U.S. as the most-desired destination for outbound Chinese tourists. He offered three tips to U.S. hoteliers to be successful with this market in the next decade:
1. Add Chinese language pages to your online marketing sites and booking engines.
2. Teach your employees a basic understanding of Chinese manners and culture.
3. Train your staff to speak a few passable words of Mandarin associated with hospitality.
Price, a British national who spends a majority of his time in Asia, said the PRC is relaxing travel restrictions for its citizens, which should result in a forecasted two million outbound Chinese tourists. Their travel decisions will be heavily influenced by the Internet. Price recommended U.S. travel operators read Essential Chinese Travel Trends published by ChinaTravelTrends.com for a greater awareness of the opportunities presented by Chinese tourism to the U.S.
Chinese tourists have become a major target group for destination marketing organizations and tourism companies around the world. Here are several online marketing facts for hotel operators from the book that underscore the value of social marketing to the Chinese:
1. China has more than 428 million web users and is adding 14,000 users each hour.
2. Social media is the most influential communications medium in modern China, according to 67% of the Chinese public.
3. China is the most engaged country online: 92% of Chinese netizens contribute to social media
4. China has more bloggers in China than in Europe and the U.S. combined.
Michael Squires is COO of Softscribe Inc., a digital marketing + PR firm. His name is synonymous in the hospitality industry with strategic selling. Reach out to him on twitter @MichaelSquires, via email at mbs@softscribeinc.com or sign up for the company's business blog.
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© 2012 Penton Media Inc.
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