data protection technology
It’s worth noting that when Facebook chief executive Mark Zuckerberg appeared before two US congressional committees in April, politicians repeatedly asked him if he would extend GDPR’s consumer protections to cover US-based users. The US has generally had less stringent rules on data protection and security than in the EU, even before GDPR came into force. “We are in a global world and the EU is setting the bar high – that could be good for the rest of the world,” adds Paul Stephen. “The US already has equivalents to most of the things included in GDPR but they are nowhere near as strict.”
Good practice
Many commentators think there are good practical reasons for travel firms to follow the principles of GDPR, regardless of where they are based. Benefits include helping to improve the “trust” between brands and their customers, as well as encouraging new processes
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that enhance databases and improve the security and management of data. Alexandra Cooke, an associate at London-based law firm Hamlins, says the key to complying with GDPR for travel firms is to be open with consumers. “It’s important and useful to explain to clients why you are holding that data,” she says. “You need to be transparent so that consumers have trust in you,” she explains. “You have to be transparent about what data you are collecting, who you are giving it to and how you are keeping it secure.”
Cooke also questions the value of travel companies holding details of consumers who have not booked or made enquiries about a holiday for many years. “How useful are those people who have not been in contact for five or 10 years? Why do you need them in your database?” she adds. “There are lots of people who think their database is sacred. But this is an opportunity to get that information streamlined and updated. It also allows you to get to know what your consumers think, and that has to be a good thing.” Jeremy Tait, vice president of insight
for cruise company Carnival UK, says that complying with GDPR should not prevent travel firms from making more of the data they continue to collect from clients. “You have to have a policy so you can show you are looking after that data if the information officer comes calling – that’s just good governance,” he says. “The more GDPR-compliant data you can get, the better.” Part of the reason that customer databases have been allowed to grow so large is the low cost of email marketing, adds Sagittarius’s Paul Stephen. “The costs were much higher in the days of direct mail marketing so you would be a lot more selective with your database,” he says.
“That financial pain has gone away because it’s so cheap to send emails to lots of people.”
Stephen adds that GDPR represents a chance to readdress this marketing issue and to improve relationships with customers who have a “genuine interest in your product or service”.
The high level of potential fines under GDPR has certainly grabbed the attention of EU-based travel businesses. But there are also compelling business benefits to complying with these requirements, even if your firm is not based in the EU, because now that consumers are more aware of how their data is being used, similar rules may be on their way in other parts of the world.
summer 2018 wtm insights 23
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