Understanding GDPR and Data Protection in Hotel and Restaurant Management
- By Harri Insider Team | July 2, 2024
Balancing Data Sharing and Privacy in the Digital Age
Sharing data daily has become routine. But how much is too much, and how can consumers feel secure? Balancing data sharing with privacy is crucial, and understanding regulations like the GDPR helps protect personal information while fostering trust.
The EU GDPR came into force in the EU in May 2018 and the UK GDPR came into force in the UK after Brexit, hereafter referred to as ‘the GDPR’. The GDPR lays down rules relating to the a person’s rights to protect their personal data and the free movement of personal data.
What is GDPR?
The GDPR stands for the General Data Protection Regulation, which was implemented in the European Union in 2018 and in the UK after Brexit. Designed to protect the personal data and privacy of natural persons, it sets out rules and guidelines for how organizations should handle and process personal data and gives individuals more control over their own information.
The GDPR includes requirements for having a legal basis for processing, handling data breaches and providing people with the right to request access and deletion of their data, among other things. It applies to all organizations that process the personal data of all those people who are in either the EU or the UK, no matter where the organization is located.
GDPR Specifically in the Hospitality Sector
Hotels and restaurants must comply with the GDPR, but it’s not always easy. This sector experiences some unique challenges in aligning their operations with the GDPR.
Here are a few examples:
- Data security: When you think about it, it’s easy to see that this industry handles a vast amount of personal data, including names, contact information, payment details, and even dietary preferences. Ensuring the security of this data is crucial to complying with the GDPR. Hotels and restaurants must implement robust security measures to protect against data breaches, such as encryption, access controls, and regular security audits.
- Third-party compliance: Many establishments rely on third-party vendors for various services, such as online booking systems, payment processors, and customer relationship management tools. Start by ensuring that these vendors are GDPR compliant and handle personal data appropriately. Clear contracts and agreements must be in place to outline the responsibilities and obligations of both parties.
- Data retention and deletion: The GDPR requires organizations to retain personal data only for as long as necessary for the purposes for which it was collected. Hotels and restaurants must establish clear data retention and deletion policies and procedures. This can be challenging, especially when managing reservations, loyalty programs, and customer databases with historical data.
- International data transfers: Many organizations operating across borders may need to transfer guest data to other countries. Under the GDPR, such transfers are only allowed if certain conditions are met, such as using adequate safeguards. Managing these international data transfers while ensuring compliance can be complex.
- Staff training and awareness: Turnover tends to plague the hospitality industry. Ensuring all staff members are aware of their responsibilities and trained in data protection practices is crucial. Hotels and restaurants must conduct regular training sessions to educate employees about the GDPR, data protection principles, and best practices for handling personal data.
The Essential Aspects of GDPR for Hospitality
Addressing evolving challenges requires a proactive approach to data protection, including conducting privacy impact assessments, implementing privacy-by-design principles, and regularly reviewing and updating data protection policies and procedures.
While this does require some investment, it is an important area for business leaders’ attention. According to the Pew Research Center, 81% of American users say the potential risks they face from companies collecting data outweigh the benefits. In comparison, 54% of UK consumers believe that companies should be responsible for protecting their data. 81% of users in a Cisco study believe the way a company treats their personal data is indicative of how it views them as customers.
In other words, people are generally concerned about what happens with their data and believe you, as a company, are responsible for its safety. They also believe that the care you show with the GDPR reflects how you treat customers. Investing in GDPR compliance is an investment in customer trust, loyalty, and retention.
Take Action with Harri
Ensure your restaurant or hotel is GDPR compliant and effectively protect your customers’ data. Learn more about the GDPR tailored for the hospitality sector and discover best practices for data protection, securing guest consent, and maintaining customer trust.
