In the hotel industry, guest data management is an essential strategic lever for gaining the trust of guests and building loyalty. As concerns about data confidentiality intensify, it is essential for hoteliers to provide transparency and security. This article sheds light on what guests expect in terms of data management, and what the hotel industry can do about it.

What expectations do guests have about data management?

The hotel industry is extremely concerned by guests' expectations regarding their personal data. Yet it is not one of the industries that inspires the most confidence among its customers. Therefore, This industry needs to improve its response to these expectations in order to increase guest retention and boost its revenues.

Tourism is ranked among the industries that consumers trust the least (37%), after technology (39%), and as much as media and entertainment (37%). - Source: Boston Consulting Group + Google 2022 study , Consumers Want Privacy. Marketers Can Deliver

Guests are concerned about the use of their data and demand transparency

Guests are very concerned about their personal data, and would like to have control over the data they share. For example, they want to know about a brand's data privacy policy before making a commitment.

77% of French consumers are concerned about how their data is used. - Source: ADOBE Trust 2022 study

74% of French consumers say it's important to be able to choose how companies use their data. - Source: ADOBE Trust 2022 study

85% of consumers say it's important to know a company's data privacy policies before making a purchase. - Source: McKinsey 2022 study, Why digital trust truly matters

Guests need reassurance about how their data is used

Hoteliers have a vested interest in proactively informing their guests to reassure them that the confidentiality of their data is important.

79% of consumers say they don't know what companies do with their data, and 51% feel obliged to accept how their data is used if they want the service offered. - Cisco 2022 study, Data Transparency's Essential Role in Building Customer Trust

76% of consumers worldwide say they wouldn't buy products or solutions from a company they didn't trust to manage their data - Cisco 2022 Study, Data Transparency's Essential Role in Building Customer Trust

Showing that you take the management of your guests' data seriously has a direct impact on their satisfaction and the perception of your establishment:

81% of consumers believe that a company's handling of personal data is indicative of how it views and respects its customers. - Cisco 2022 Study, Data Transparency's Essential Role in Building Customer Trust

On the other hand, any use of guest information without their consent leads to a loss of trust in the service provider, and can be costly for the establishment.

59% of French consumers say they want to stop any commercial relationship with brands that use their data without permission - Source: ADOBE Trust 2022 study

Guests are inclined to share their data if they benefit from it

Gathering information from guests is not an end in itself. If you want them to be encouraged to share it, you have to explain how it will impact and improve their experience.

90% of consumers are willing to share their personal data if they receive the right value exchange. - Source: Boston Consulting Group + Google 2022 study , Consumers Want Privacy. Marketers Can Deliver

But what do guests expect in return?

The most frequently cited benefits are economic(discounts, vouchers, free trials, refunds...). Improved comfort is the first non-economic benefit cited. The second non-economic benefit is personalisation of the experience.

Interestingly, the different benefits offered in data exchange vary in importance in relation to the age category of the consumer and the type of data requested. Although many establishments offer discounts to all of their guests, optimizing value exchange by guest segments can be more effective.

Here are some interesting examples of guest segment advantages: 

• Generation Z (between 18 and 24 years of age) willingly shares their e-mail address in exchange for relatively low-value benefits. This clientele is moderately receptive to benefits, but appreciates various types of incentives at a low price level.
• Young urban professionals (aged between 25 and 40, with a bachelor's degree or higher) are the most receptive to a wide range of different incentives.
• Wealthy and retired consumers are the least receptive to the benefits, believing that their e-mail address is worth more than $25. 12% of this group consider that no dollar amount would convince them to provide this information.

Guests who share their data have higher expectations of their experience

‍75% of consumers expect faster service and 74% better personalization when they provide more data. - Source: Salesforce 2023 report , Focus on guest connected

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80% of consumers say that customer experiences should be better given all the data collected by companies, a figure that rises to 85% for professional buyers. - Source: Salesforce 2023 Report , Focus on guest connected

As for French consumers, more than half criticize companies for using data solely for their own purposes, and not for the convenience of customers:

53% of French consumers are convinced that the data collected only benefits the company. - Source: ADOBE Trust 2022 study

62% of French consumers would stop buying a company's products or services if their experiences weren't personalised. This figure rises to 70% for Generation Z. - Source: Twilio study , 2024 State of Engagement Report guest

Consumers whose data protection expectations are not met take action accordingly

A proportion of consumers indicate that they care about their privacy, are prepared to act accordingly to protect it, and have already done so by changing company or supplier.

89% of consumers say they are concerned about their privacy, and of these, 82% are ready to take action to protect it, and 44% have already acted accordingly by switching companies because of their data policies or data-sharing practices. The latter represents 32% of survey respondents. - Source: Cisco 2022 Study, Data Transparency's Essential Role in Building Customer Trust

Among consumers who have actually changed company/supplier, the countries most likely to take action are India (68%), China (53%), Brazil and Mexico (47%), and the USA (35%). Europe ranks last: Spain (35%), Germany (33%), France (25%) and the UK (21%). - Source: Cisco 2022 Study, Data Transparency's Essential Role in Building Customer Trust

As for hoteliers, are they concerned about the proper management of their guests' data?

Securing data would prevent them from properly using the data 

In 2021, 95% of the hospitality and retail sectors were not entirely satisfied with the security of their systems, which were said to be misaligned with reality. - Source: FreedomPay + Cornell 2021 study , Check Please! How Restaurant, Retail and Hospitality Businesses are Managing Cybersecurity Risks

For 50% of hotel executives, data security prevents the effective use of guest data. 

This is followed by customer confidentiality (45%), technology infrastructure challenges (31%), and the fact that data is fragmented across different systems and databases (25%). - Source: Skift + AWS study, The 2023 Digital Transformation Report, Technology's impact on company culture and customer experience in travel and hospitality

All these data utilization difficulties could be overcome with a CDP (Customer Data Platform)which centralizes and harmonizes data from different systems, while ensuring compliance with legislation on data protection and customer privacy (anonymisation, data traceability, etc.).

Concern for cybersecurity

Cybersecurity is the key to protecting guest data. Data is a tempting target for cybercriminals, as it contains both personal information (identity, e-mail, telephone number, address, etc.) and payment details. The volume of data is significant, even for small establishments, making hotel systems an attractive target.

Cybersecurity is the top concern in 2023 and 2024 for 46% of hotel executives. In fact, it's the number one issue, well ahead of systems downtime (35%) and staff shortages (35%), which were the main concerns before and after Covid-19. - Source: Skift + AWS study, The 2023 Digital Transformation Report, Technology's impact on company culture and customer experience in travel and hospitality

However, according to a Trustware study, the biggest cybersecurity challenges in the hotel industry that have been identified are :

1. high staff turnover
2. less-skilled seasonal workers
3. unsecured networks

The hotel industry, a major target for cyber attacks

This concern on the part of hoteliers is justified, given the number of attacks directed at the hotel sector, which is one of the industries most affected by cyber attacks.

31% of companies in the hospitality sector have suffered a data breach. Of these, 89% have experienced repeated attacks (more than once a year), with an average cost per breach of $3.4 million. - Source: Trustwave study , 2023 Hospitality Sector Threat Landscape

Curiously, internal threats are the most cited, with 86% of hospitality companies citing human error and 81% lack of employee training as the main cybersecurity threats.

In the hospitality and retail sectors, 91% of companies believe that their guests care deeply about cybersecurity, and 86% believe it increases guest loyalty.

However, 65% of executives believe that guests are annoyed by additional security measures, and 67% want systems to be easy to use.

- Source: FreedomPay + Cornell 2021 study , Check Please! How Restaurant, Retail and Hospitality Businesses are Managing Cybersecurity Risks

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In conclusion, the management of guest data in the hotel industry is a crucial issue that directly influences guest trust and satisfaction. Increasingly concerned about the use of their personal data, they demand transparency and greater control. Hoteliers must therefore reassure their guests that their data is protected, and offer concrete improvements to the guest experience by personalizing Touchpoints, adapting their messages, and facilitating the guest journey.

Cybersecurity represents a major challenge for the hotel industry, given the volume and sensitivity of the data collected. By equipping themselves with a CDP or CRM solution to centralize and better manage guest data, hoteliers can not only meet guest expectations, but also win the loyalty of a clientele that is increasingly demanding in terms of privacy protection.