Top Risks Within the Hospitality Industry
The economic recession hit the hospitality industry just as it did other sectors, perhaps even more so. Many businesses did not want to invest funds in travel and individuals began reducing their vacations and leisure activities. However, as the economy recovered the amount of business and leisure travel increased as well. While an upsurge in travelers is good for business, it also poses risks that hotels and other lodging facilities need to address.
Customer privacy is a concern that dominates almost every industry. Without a base of reliable clientele, no business can survive. If cyberattacks continually compromise a business, they are unlikely to secure repeat customers. Hotels are popular targets for cyberattacks because they collect a large amount of information about their guests. A hotel may have the address, phone number, credit card number, and more private information about any given guest that is a data goldmine to a hacker. As digital and automated systems become more commonplace, the hospitality industry needs to be aware of new cybersecurity threats as well as methods to address them.
Without guests, the hospitality industry could not survive. Even so, visitors pose a litany of threats to profitability. Guests may sue a hotel due to an injury or they can cause extensive property damage. Establishing an internal system to deal with guest safety and destruction of property can help prevent incidents before they occur.
Knowing the risks that face your hospitality business is a crucial step to protecting your investment. The Reilly Company Group can help you address and reduce your risk to achieve your business goals. To learn more, contact us.