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Data Privacy Rules Hinder Hotel Industry's Quest for Frictionless Experience

Hotel Legacy Systems Are Also a Barrier to Tech Innovation
Mandarin Oriental Hotel Group's Todd Wood and AAHOA's Bharat Patel speak at the 2023 HITEC conference. (Sean McCracken)
Mandarin Oriental Hotel Group's Todd Wood and AAHOA's Bharat Patel speak at the 2023 HITEC conference. (Sean McCracken)
Hotel News Now
July 5, 2023 | 1:10 P.M.

TORONTO — A common goal of the hotel industry's implementation of technology is a "frictionless" experience for guests, but several hurdles remain in the way of making that reality, according to experts.

During the "International Perspectives — Tech Future Proofing" session at the 2023 HITEC Conference, Tariq Valani, Accor's senior vice president of global support services, said technologies such as facial recognition could be used for a more seamless check-in process at hotels. But it's not as simple as just deploying new technology.

"Before we even look at the technology, we need to look at the legislation and the laws," he said. "You've got so many different points of concern. For example, in some countries you need to ask for identification. In others, you don't. Facial recognition is probably the easiest way to go from one angle, but once you implement that, how do you get the actual right to use that information? How do you get that initial image in order to be able to recognize the guest?"

Several panelists noted the challenges that varied data privacy regulations around the globe present to hoteliers and deploying new technologies.

Amandeep Sarna, chief information officer for ITC Limited's hotels division, said his company is working on projects to "create that dream of customer 360," indicating a more complete understanding of who customers are and what they need and want, but complying with data privacy rules is key.

"We're getting there, but the challenge right now is data privacy laws are getting more and more stringent," he said.

He said hotels are striving to create a "seamless, customized experience."

"But it's becoming a very fine line in how you use that data," he said.

Bharat Patel, chairman of the Asian American Hotel Owners Association, said the big challenge for owners and operators remains wrangling between various entities in the industry over who owns the data, which he said is now "more valuable than oil."

"Whether it's with the brands or online travel agencies, it's what data can we own and what data can we utilize," he said.

He said it's not always clear with varied privacy rules whether different groups can share data that could elevate customer experience — for example, whether they want a room near the hotel gym. The complication of data rules have kept some from leading the way in technology adoption.

"My fear is that a lot of hotel chains are not planning for future proofing," he said.

Michael Levie, cofounder of CitizenM, said the hurdles the industry faces in creating a better guest experience through technology aren't all external. Many of the issues hoteliers face are created by their own bad habits and over-reliance on a cobbled-together network of legacy systems that hamper adoptions of more advanced tech.

"What I think we need to do in order to transition is there's a lot of crap that needs to be cleaned up," he said. "We as hoteliers need to understand that unless we untangle that all, we can't go to the next level. And there's so much available right now."

Todd Wood, vice president of global applications and transformation at Mandarin Oriental Hotel Group, said his company's focus has been trying to quickly and efficiently transform available data into operational and guest experience improvements even in small ways.

"We are really focusing on bringing data together from the rooms system and making sure we know at point of presence, when you're checking somebody in, that ... it's the same guest and you can greet them and know they spent a lot of time in New York or Hong Kong," he said.

He said a lot of systems are focused on customizing a digital experience for consumers, but luxury hotels need to use that data to customize the in-person experience, as well.

"Then a colleague can use that information and actually serve a guest and not just offer a spa appointment or something like that," he said.

Sanovnik Destang, executive director of Bay Gardens Resorts, agreed that bridging the gap between digital experience and human interactions is a huge opportunity for hoteliers. But a big part of making that happen will be not being satisfied with the status quo at a point when consumer behaviors are changing.

"When it comes to future proofing yourself, you have to make sure that you have a culture within your organization that encourages innovation, that encourages people to take changes and to take risk and to adopt and try out new technologies," he said.

He said his company was an early adopter of social media in the 2000s, which has paid off in having a lower reliance on third parties such as online travel agencies.

"We said, 'We're going to try it this way and figure it out,' and that's allowed us to do very well in terms of direct booking," he said.

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