Technology Figure 2: Digital transformation necessitates the need for CDR
receive new data and make new inferences. AI learns on its own, with the data it has, to the point that AI developers may not truly understand why certain results are generated, and this can be risky. Third, there is also the issue of dark patterns. Dark patterns are deceptions found in user interfaces to trick consumers to carry out unintended purchases or to give their personal data. In 2019, the 116th Congress introduced the Deception Experiences To Online Users Reduction (DETOUR) Act, and again it was reintroduced in 2023. Dark patterns are used widely by online travel agency (OTA) websites where false discount claims are advertised, and other guest purchases are falsified to create the bandwagon effect. Although this is an example on OTAs, they are so closely related to the hotel industry that as hotel companies, we need to be more vigilant. And that is another reason why CDR is important.
Data code of conduct Undoubtedly, for major brands, with their available infrastructure, they practice some level of CDR. Yet, there is not a shared goal in the industry. And all companies, big and small, can always benefit from a quick check. When deciding what data to collect and how to collect them, it is wise to also establish that internal data code of conduct simultaneously. A code is less stringent than an entire CDR plan, but it is a very good place to start. Some might discount the effectiveness of a code of conduct as merely self-regulation without enforcement, that is non- binding, and has no legal repercussions discuss at length regarding a code of conduct for e-commerce stemming from CDR. Many of the comments can also be applied to hotels. A code can work. Take for example the Uniform System of Accounts for the Lodging Industry
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(USALI). It is a document, not regulations, or laws. Hotel companies can choose to abide by following the USALI way of reporting when compiling their accounting work. When a code is fair, sensible, and includes ethical standards and principles, others will see the good and follow. This is self-regulation. In this case, many hotel management agreements include the stipulation of using the USALI to report the financial results. As such, the owners and the management companies are self-governing with the management contract as the adjudication entity. This can be the same for the data code of conduct.
A win
As with any issue, planning is the key. Benjamin Franklin said, “By failing to prepare, you are preparing to fail.” So, let’s prepare by first setting a data code of conduct for the hotel industry so we can stay in the forefront in this new era of responsible digital transformation. Hospitality Financial and Technology Professionals (HFTP), the global spokes group for the industry’s hospitality technology segment and producers of the HITEC brand, has adopted the project to develop a Hospitality Code of Digital Responsibility. A task force of industry experts and academics was convened, and the first of a series of task force meetings was held at HITEC North America 2024 in Charlotte, North Carolina, US. Once a draft code is developed, it will be presented for industry feedback. Ultimately, a final code will be developed and hospitality enterprises who opt to follow the base guidelines will be awarded a compliance seal. The target date for release of the guidelines is Q4 2024. ●
This article was originally published in the inaugural Summer 2024 issue of the HFTP Tech+Fin Hospitality Magazine, in which all references can be found.
Hotel Management International /
www.hmi-online.com
Stokkete/
Shutterstock.com
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