Technology Figure 1: Digitisation and digitalisation in the hotel guest cycle
into digital form. Simultaneously, digitalisation occurs through the use of ICT devices and information systems where data is generated and collected. Finally, digital transformation takes place when a hotel integrates digital technology and data, connects digital capabilities such as AI, machine learning, or business analytics to the hotel’s strategic goals to then guide business decisions.
The need for CDR
In the paths of all these stages to reach digital transformation there are a number of challenges; but of all, data security is paramount. From the guests, a hotel gathers and stores data on guests’ spending and purchase preferences. From the back- of-the-house, a hotel has systems in scheduling, payroll, reservation, energy management, for example, collecting data points from both guests and employees. Machine learning (ML), business analytics and AI are tools used in data analysis. All these tools make our hospitality management systems, from online booking, point of sales systems, and property management systems, smarter. When used properly, AI can be designed to identify loopholes and fake information; however, AI can also cause discrimination and other negative issues. Then, how is such data being kept, used, and managed in a sustainable and responsible manner?
These are all CDR issues (see Figure 2). CDR is a set of shared practices that dictates how a business should behave in their use of data and digital technologies, manage their digital footprint and data security so as to be ethically, socially and environmentally responsible for all. With data being
Hotel Management International /
www.hmi-online.com The challenges
First, when data is involved, there are always privacy and security issues. Data breaches can be in the form of phishing, ransomware and even human error, and such breaches know no boundaries. They attack big and small companies, international and local. The data breach at Sabre Hospitality Solutions in 2017 as a third-party reservation system affected multiple hotel companies. The negative results can be as benign as unwanted marketing communications, but they can also lead to more serious issues such as identity theft. Second, there are fairness and bias issues. From sampling biases, representation and aggregation of data, or even programming one’s social biases in the algorithms, AI can be inaccurate and dangerous. Businesses that use data extensively deal with an inordinate amount of data about their guests and employees. Analytics are run and ML is used, models are trained to optimise results to increase value, leading to efficiency. This is customisation, co-creation and personalisation so that our industry can tout what we do for our guests. On the flip side, these ML and algorithm training processes continuously
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captured in text, images, numbers and knowing hotels use financial data to gauge performance, set strategies and co-create with their guests to ensure personalised services to increase guest satisfaction, CDR in hotels is of special concern and utmost importance. And if a hotel does not have any guidelines, code of conduct, and proper CDR practices in managing digital data and technology sustainably, this can spell disasters down the road.
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