Briefing: Data Security fears rise among consumers

A new report by Symantec found that 49% of UK consumers and 57% of European consumers are worried their data is not safe. The State of Privacy Report 2015 found that 81% people now recognise that their personal data has value, and one in three people give fake personal data so that their real information remains private. Whilst hospitality companies continue to find innovative ways to organise data and use it to personalise service, it is imperative that they ensure security is robust or they risk losing customers.

In this week’s videos, industry experts discuss responsible data usage:

Symantec’s survey of 7,000 people was conducted across Denmark, France, Germany, Italy, Netherlands, Spain and the UK in December 2014. On average 88% of respondents said that a company keeping data safe and secure was an important factor in choosing a company to shop with. This ranked higher than great customer service (82%) and having quality products (86%).

A second information security company, TRUSTe found similar results in it’s 2015 Consumer Confidence Privacy Indexes which showed that 42% of Americans and 33% of UK residents are now more worried about their online privacy than they were year ago. The reports state that 77% of Americans and 80% of UK residents have moderated their online activity in the last year due to privacy concerns.

It is clear that there are negative impacts on a business when security is not properly addressed. One hotel booking site closed down last year after a major issue with the way it handled data meant that customers’ booking information could easily be accessed by members of the public, according to this BBC report.

There are regulations in place that all business are required to follow which define how they can hold data and what they must tell the consumer when collecting information. In the UK there is the Data protection Act 1998 which now includes a paper specifically written to address the issue of big data. In the US the Consumer Bill of Rights is being drafted to update data privacy policy.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Hospitality and tourism drive luxury consumption

The latest edition of the Bain Luxury Study has found that the overall luxury market exceeded €850 billion in 2014 and showed a growth of 7% overall. The report says that luxury hospitality (9%) was driving this growth, along with luxury cars (10%).

The worldwide market study states that: ‘The luxury-goods industry in most markets is now driven by touristic spending.’ It says that many tourists are willing to spend more when abroad than at home, and that this is particularly true of Chinese tourists who spend three times more when abroad. It is interesting to note that in 2014 luxury spending within China showed a negative trend of 1% growth for the first time since the study has been published. However, the consumer segment which report calls the ‘upper-middle-class “wannabe”’ in China is expected to double by 2017.

In this briefing experts discuss luxury brands and consumer behaviour worldwide:

In the hospitality market, luxury hotels have had steady growth (up 9%). According to the report it is ‘younger generations seeking superior lifestyle experiences’, who have helped to fuel 5% growth in the cruise market.

Research by the Travel Leaders Group found Luxury hospitality bookings in the U.S are going strong. The survey states that 92% of luxury oriented travel agents had increased or steady bookings in 2014.

The Affluence & Wealth Survey by Time Inc. and YouGov sheds some light on the luxury consumer. In a survey of high earning individuals (predominately American), 78% of people said they enjoy being treated like a VIP. 73% said they worry less about money while on holiday.

So how can brands appeal to luxury consumers? The Affluence & Wealth Survey found that 82% of people prefer brands that reflect their values, and 82% prefer brands that stay true to their history and heritage. There is also a strong use of mobile devices among luxury consumers. According to Criteo, 33% of Fashion and Luxury Transactions are on mobile.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Chat Button