Every modern hotel runs on data. From guest preferences and payment details to booking platforms, loyalty programs, and smart room tech. Everything is connected.
But connectivity comes with a catch. The hospitality industry has quietly become one of the most targeted sectors for cybercrime. Hackers see hotels as goldmines of personal information and too often, easy targets.
According to IBM’s Cost of a Data Breach Report, the average cost of a breach in hospitality in 2025 is over $4 million - a 5.5% rise from 2024. For hotel groups that manage multiple properties, one weak link (one untrained staff member, one insecure vendor) can expose the entire brand.
So how can hotel leaders strengthen their defences without turning their front desks into fortresses?
The hidden cost of weak defences
Cyberattacks are serious and can be devastating not only financially but also reputationally. Here are the hidden costs of a cyberattack:
- Operational downtime: A ransomware attack can take reservation systems, point-of-sale platforms, and guest services offline across multiple properties. Even a few hours of disruption can mean cancelled stays and refunds.
- Loss of trust: Guests expect their data to be handled with care. A single breach can undo years of loyalty and positive reviews.
- Regulatory fines: Under GDPR, data mishandling can trigger penalties of up to 4% of annual global revenue. That’s before you add legal fees and compensation costs.
- Reputational damage: A public breach can make headlines and not the kind you want. Corporate clients and event planners may quietly move their business elsewhere.
The biggest cybersecurity threats facing hotel groups today
1. Phishing and social engineering
Hackers don’t always break in through code. They often walk right through the front door. In hospitality, phishing is still the number one cause of breaches and it’s getting harder to spot.
Modern phishing emails don’t look like clumsy scams. They’re polished, specific, and timed to catch staff off guard. An email might appear to come from your head office, a trusted vendor, or even your general manager asking for a quick favor. Some mimic guest booking requests or urgent payment confirmations. The aim is simple: trick someone into clicking a link, opening an attachment, or entering login details on a fake page.
Hotels are particularly vulnerable because they rely on fast communication and high staff turnover. Front-desk agents and sales teams are trained to respond quickly and helpfully which is exactly the behavior social engineers exploit. A single employee clicking a malicious link can compromise the property management system, booking data, or payment terminals.
Phishing also extends beyond email. Attackers may use text messages, LinkedIn connections, or even phone calls pretending to be IT support asking for password resets. In large hotel groups, where communication often flows across multiple properties and departments, it’s easy for these messages to blend in with genuine requests.
How to fight back:
- Train like you mean it: Replace dry annual cybersecurity slideshows with short, realistic exercises. Send simulated phishing emails so staff learn to spot suspicious requests in real time. Follow up with supportive coaching.
- Make reporting effortless: Add a “Report Phish” button to your email client or create a quick Slack or Teams channel for suspicious messages. The easier you make it, the faster IT can contain a potential threat.
- Build a culture of curiosity: Encourage staff to double-check any unexpected link or attachment even if it looks like it’s from management. A quick call to confirm is always better than a breach.
- Harden your defences: Rotate passwords regularly, require multi-factor authentication (MFA) for all staff logins, and limit system access based on job role. Even if credentials are stolen, MFA makes them far less useful.
- Extend vigilance to your partners: Many phishing attacks target third-party vendors that connect to your systems. Make sure every tech partner, from your CRM to your payment processor, invests in regular staff training and uses secure access protocols. A breach on their side can be just as damaging as one on yours.
2. Ransomware and system lockdowns
Imagine opening your Property Management System (PMS) one morning and finding nothing but a ransom note. No reservations, no guest profiles, no billing access. All you see is a message demanding payment in cryptocurrency to “unlock” your systems. That’s ransomware in action, and it’s one of the most disruptive (and expensive) attacks facing the hospitality industry today.
Ransomware works by encrypting your files and holding them hostage until you pay. Even worse, paying doesn’t guarantee recovery. Attackers often demand additional payments or disappear altogether after receiving funds. Meanwhile, your operations grind to a halt. Guests can’t check in. Point-of-sale terminals stop processing. Staff scramble to manage bookings manually while negative reviews spread online.
Over the past few years, several major hotel brands and management companies have faced ransomware incidents that crippled daily operations for days or even weeks. In multi-property groups, a single infected server can cascade across shared networks, taking down multiple hotels at once. Smaller independent properties aren’t immune either. Attackers often target them precisely because their defences are weaker and their backups inconsistent.
Ransomware also hits more than just your PMS. It can lock up HR systems, security cameras, or even digital keycard systems, leaving both staff and guests stranded.
How to fight back:
- Back up data across every property and keep at least one copy offline: Cloud backups are useful, but if they’re connected to your main network, ransomware can encrypt those too. Offline or “air-gapped” backups are your last line of defence.
- Test your backups regularly: Many hotel groups discover too late that their backups were incomplete or corrupted. Schedule regular recovery tests to make sure you can actually restore your data under pressure.
- Patch everything, always: Outdated operating systems, routers, and point-of-sale software are common entry points. Establish a centralized patch management routine that ensures every property stays current.
- Work only with transparent technology partners: Before signing with any vendor, ask about their security protocols, backup frequency, and breach response process. Responsible partners should share detailed documentation and service-level agreements that outline recovery support. If a vendor dodges those questions, that’s a red flag.
3. Third-party vendor breaches
No hotel operates in isolation. Every property depends on a web of partners like booking engines, payment gateways, CRM systems, digital marketing agencies, Wi-Fi providers, event tech platforms, housekeeping apps, and beyond. This ecosystem keeps operations running smoothly and guests happy. But it also means every partner connected to your systems represents a potential entry point for attackers.
A breach doesn’t have to happen inside your own network to affect you. If even one vendor stores guest data insecurely, or if one supplier fails to patch a system vulnerability, your guests’ information could be exposed. And when that happens, your brand (not your vendor’s) takes the reputational hit.
Consider how many systems touch a single guest’s information in the course of one booking. Their data flows from your website to your booking engine, into your PMS, then perhaps to your CRM or marketing automation tool, and even your mobile check-in platform. Each transfer is an opportunity for something to go wrong if vendors aren’t maintaining strong data hygiene and encryption standards.
The hospitality industry has already seen examples of this. In recent years, attackers have targeted third-party service providers to infiltrate multiple hotels at once. This is done often by exploiting a shared integration or cloud environment. The fallout can affect hundreds of properties, even those that were never directly compromised.
How to fight back:
- Do real due diligence, not box-ticking: Before signing with any new vendor, ask pointed questions: How is guest data encrypted? Where is it stored and who has access? How long do they retain it? Do they comply with GDPR and other regional privacy laws? Responsible partners should be able to show you detailed documentation and independent audit reports.
- Review contracts closely: Your data-sharing agreements should clearly define ownership, access rights, and breach notification timelines. In the event of a security incident, you need to know exactly who is responsible for what, and how quickly you’ll be informed.
- Limit the data footprint. Only share what’s necessary for a partner to do their job. If a vendor doesn’t need full guest profiles or payment information, don’t grant it. The less data they hold, the less there is to lose if they’re compromised.
- Assess ongoing compliance. Security due diligence shouldn’t end once the contract is signed. Conduct periodic reviews, ask for updated compliance certificates, and monitor vendor performance. A trusted partner will welcome the scrutiny. It shows you take security as seriously as they do.
4. Unsecured guest Wi-Fi and IoT devices
In modern hospitality, connectivity is part of the guest experience. Wi-Fi is as expected as hot water. And with the rise of smart rooms, connected lighting, mobile keys, and voice-activated assistants, hotels have become mini digital ecosystems. But with every new device or connection, a new risk appears.
Public Wi-Fi is one of the easiest ways for attackers to get a foot in the door. An unsecured or poorly configured network allows cybercriminals to intercept traffic, steal login credentials, or inject malware into connected devices. Some hackers even set up “evil twin” hotspots: fake Wi-Fi networks that look identical to yours — tricking guests and staff into connecting to them instead.
Once inside, attackers can try to move laterally from the guest network into internal systems, especially if both share a common entry point or hardware. From there, it’s possible to access sensitive operations data or even your PMS. For hotel groups that use shared infrastructure across multiple properties, a single compromised access point can have a domino effect.
Then there’s the explosion of Internet of Things (IoT) devices. Smart locks, thermostats, minibars, TVs, and voice assistants all run on software that requires regular updates. When left unpatched, they can be exploited to gain remote access, sometimes without anyone noticing. A single outdated smart TV firmware or a forgotten sensor with a default password can serve as an open back door.
How to fight back:
- Separate networks completely: Guest Wi-Fi and internal operations should never share routers or access points. Segment them with strict firewall rules so there’s no path from one to the other. Guests don’t need to be anywhere near your PMS, POS, or HR systems.
- Use encrypted Wi-Fi protocols and rotate passwords: Outdated security standards like WEP or WPA2-PSK are no match for today’s hackers. Adopt WPA3 where possible and change access credentials regularly, especially for staff networks.
- Choose proactive Wi-Fi partners: Not all providers are equal. Work with vendors who actively monitor for suspicious traffic, automatically block malicious devices, and issue alerts in real time. Ask for transparency about how often they patch access points and firmware.
5. Insider mistakes and forgotten access
Not every cybersecurity threat comes from outside your walls. In fact, some of the most damaging breaches start with ordinary human mistakes like a shared login, a misplaced laptop, or a staff member who still has access to systems weeks after leaving the company.
In hospitality, where staff turnover can be high and teams are often spread across multiple properties, these risks multiply fast. It’s easy to overlook an old account or reuse a password “just for convenience.” But those small oversights can open big holes in your defences.
One of the most common issues is shared credentials. It’s not unusual for front-desk or housekeeping teams to use a single set of logins for a reservation system or POS terminal. It saves time until it doesn’t. When everyone uses the same credentials, it becomes impossible to trace who accessed what. If those credentials are stolen, attackers gain unrestricted access without raising alarms.
Lost or stolen devices are another problem. Laptops, tablets, and even smartphones used for mobile check-in or maintenance systems often store cached data or saved passwords. Without proper encryption and remote wipe capability, a single lost device can expose sensitive guest details or internal communications.
Then there’s the lingering-access problem which is a quiet but serious vulnerability. An ex-employee who still has an active account or an outdated keycard might not mean harm, but their credentials could be exploited by someone else. In some high-profile breaches, attackers got in using credentials belonging to former staff who hadn’t worked at the property in months.
How to fight back:
- Adopt role-based access control (RBAC): Give every employee access only to the systems and data they need for their specific role. A front-desk agent doesn’t need back-office accounting privileges, and a marketing coordinator doesn’t need access to HR files. Limiting exposure reduces the potential damage of any one mistake.
- Close accounts immediately when staff leave: Make it part of your offboarding checklist. Disable system logins, revoke keycards, and remove email access the same day employment ends. A short delay might feel harmless, but it’s exactly the kind of gap hackers look for.
- Use password managers and enforce multi-factor authentication (MFA): MFA adds a vital layer of protection, even if credentials are stolen. Password managers also stop staff from writing passwords on sticky notes or reusing the same one across multiple systems. These are both surprisingly common habits in busy hotel environments.
Innovation and responsible technology partnerships
The most forward-thinking hotel groups are moving from defence to prediction. Instead of waiting for breaches, they’re using technology that spots risks before they escalate.
That includes:
- AI-driven monitoring that identifies abnormal system behavior in real time.
- Secure cloud-based platforms that centralize guest data while maintaining strict access permissions.
- End-to-end encryption for payment systems and communications.
- Automated compliance tools that alert teams to policy gaps before regulators do.
But innovation without responsibility is just risk in disguise. Choose partners who are transparent about their data practices, proactive about privacy, and committed to ethical data handling. Ask about certifications, audits, and incident history. Responsible vendors won’t hesitate to prove their credibility.
Trust: your most valuable guest amenity
Hospitality is built on trust. Guests hand over personal details expecting them to be treated with the same care as their belongings. Cybersecurity is about preventing attacks but also preserving that trust. And in an era where guest loyalty is fragile and word travels fast, trust may be your most valuable asset of all.
So, invest in systems that protect it. Partner with companies that share your commitment to privacy. Build a culture where every employee understands their role in keeping guests safe online and off.
Mansi Soni
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