Why luxury hotels need to step up their cybersecurity efforts

At luxury hotels, guests expect a memorable experience from the moment they enter the lobby. Attention to detail is what sets hotels apart. Details like more comfortable beds with extra pillows and the finest linens, a variety of restaurants to choose from and additional lavish amenities. These hoteliers offer guests upscale event spaces, high-end day spas, fitness centers often with instructors or classes, specialty retail shops, valet parking and on and on. In tandem, they provide sophisticated technology offering mobile check-ins and app-based customer service.

All told, there is a certain expectation that comes when guests book luxury accommodations. Not the least of which is a high-speed, dependable internet connection. To meet and exceed the demands of the clientele, hotels need reliable, high-performing connectivity for their hotel operations, guests and staff.

However, the very amenities that luxury properties offer may be the reason cybercriminals see them as an attractive target for cybercrimes. From check-in kiosks and digital keycards to automated lights, temperature sensors, and connected minibars, the Internet of Things (IoT) technology has become essential to hotel management. 31% of hospitality companies have reported a data breach, and 89% have been hacked more than once in a year, according to a Cornell University report. Luxury hotels are of special interest to hackers and bad actors.

Why are luxury properties targeted?

Luxury hotels attract affluent guests and store their sensitive information, including credit card details, passport numbers and personal preferences, making their systems lucrative targets for cybercriminals. These properties also host more business events and conferences than other hotels. The services necessary to host large events involve more bandwidth and more connected devices and, as a result, serve to offer cybercriminals targets of opportunity. 

Network architecture at luxury properties is necessarily more complex and as a result may have more fail points. From reservations systems and point-of-sale (POS) terminals to guest Wi-Fi networks, hotels have many vulnerability points. In one well-publicized data breach the cybercriminals stole data and credit card information through a breach in the point-of-sale systems. 

Hotels often rely on third-party service providers, whose security practices may not be as stringent as a luxury property may prefer, creating additional risk. Case in point? A hotel management software provider suffered a data breach that exposed the data of half a million hotel guests last year. 

The integration of multiple systems, such as property management systems (PMS) and guest loyalty programs, increases complexity and exposes potential points of attack. Additionally, luxury hotels have more devices to support, from guest devices to more connected devices, such as digital kiosks, signage, Internet of Things (IoT) and so on. Unfortunately, research shows that 57% of IoT devices are highly vulnerable to data breaches.

Additionally, all hotels share risk because they employ seasonal and less sophisticated staff during peak periods to meet demand. This presents a distinct risk of insider threat, intentional or not, due to the challenge of providing consistent security training to a continually changing group of employees. All hotels also encounter a fresh set of users every day. This ongoing cycle demands consistent uptime and ongoing measures to minimize potential exposure.

Hotels can suffer consequences after data breaches

Hotels are starting to bear potential civil damages for data breaches that were perpetrated despite their best efforts at prevention. In 2024, one chain agreed to pay a $52m settlement to 50 US states relating to a large multi-year data breach impacting over 131 million American customers. A luxury destination hotel in Miami Beach settled a data breach lawsuit in October 2024. The settlement offered eligible guests up to $4,000.

What to look for in connectivity and cybersecurity solutions

One of the major causes of cybersecurity risk in hospitality is the proliferation of connected devices — everything from online booking systems and digital keycards to the IoT that enables automated lights, temperature sensors, minibars and customer service.

Hospitality tech leaders should be investigating combined, secure internet solutions. A dedicated internet connection with built-in, enterprise-level security in one simple solution can enable them to effortlessly protect and safely connect your business. Solutions exist today that offer fast, reliable and secure access to the internet, cloud services, and applications with a dedicated internet connection backed by a 100% uptime service level agreement guarantee, end-to-end.

Hotels can shield their business with enterprise-grade managed security services designed to combat cyberattacks without needing specialized skills. Stay connected and protected effortlessly with a fully managed service providing all-inclusive connectivity, hardware and up to date enterprise security without burdening internal IT staff with more work. There is no equipment to own, configure or maintain and the correct partner will support you 24/7/365 so you can focus on growing your business rather than worrying about internet reliability and cybersecurity.

Spectrum Business can help

Managed secure solutions enable dependable, fast, and safer access to the Internet and cloud-based applications, which helps hotel staff conduct business and deliver customer service with fewer interruptions and cybersecurity risks. We offer attractively priced, all-inclusive, dedicated internet access, a managed router and integrated advanced, managed security and the ability to add features and capabilities (WiFi, cameras, etc.) simply and quickly.

The security protections we provide include a Next Generation Firewall and Unified Threat Management (UTM), providing strong security over users, content, and applications, plus visibility into security threats – all through a cloud-based security dashboard.

These solutions support regulatory compliance to help you meet and keep up with industry-specific data protection and privacy regulations. They also support your future needs by enabling you to increase bandwidth and integrate services like WiFi quickly and easily.

We offer managed and co-managed solutions, tailored to your hospitality organization’s unique needs and objectives. Managed Network Edge for Hospitality is an end-to-end managed solution that includes security and routing, local network switching, network management and WiFi. Discover how Secure Dedicated Fiber Internet can more easily connect your hotel business to the internet securely, and without delays.

Come see us at the Choice Hotels Annual Convention in Las Vegas

Stop by booth #969 April 29–May 1 to test-drive solutions that prepare your hotel for the next era of travel.