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Time is limited. Once it’s gone, you can’t gain it back. Similarly, once a room goes unsold for a night, it will go unsold forever. There’s no way to recover that loss, because there’s no way to go back in time.
 
Many hotels fight this limitation by trying to sell as many rooms as possible. If all the rooms are completely booked, time no longer becomes a factor. But most don’t have the luxury of being at-capacity every single night. That’s why last-minute booking apps are growing in popularity in the industry, where hotels can make the most of each day. These apps specifically target guests who don’t plan far in advance, seeking accommodations from one week to one minute later.
 
There are several different ways your hotel can benefit from using last-minute booking apps in your business strategy.

IoT is Coming, Jon Snow…
Posted: 05/21/2019

Hospitality is prime for the coming advent of the various devices that make up the Internet of Things. Estimates show the industry now represents 17.5 million rooms worldwide and savvy guests are demanding more personalization and an overall improved guest experience along their connected travel journey and belief is that IoT can bring this to reality. 

The forces driving local search rankings are constantly changing. But recent studies suggest that in 2019, four key factors make up the local search algorithm. 
 
The most significant factor is Google My Business (GMB). If you’re not on it, get on it now.

The robotic revolution in the hospitality industry might seem to have taken a step back. This January, the famously quirky Henn-Na Hotel in Japan fired half of its 243 robot staff. The robotic workforce reportedly irritated guests and frequently broke down.

Think about the moment when you first enter your hotel room. Look around: Does the room tell you anything unique about the hotel where you are staying? Or is it all beige walls and double beds with white covers, and you have to walk back outside and look at the sign on the hotel’s facade to even remember where you are?



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PCI: “Not All Tokens Reduce Scope”

12/06/2013

PCI DSS 3.0 was just released and hoteliers around the globe are scrambling to determine what the new requirements are and what changes they need to make to stay (or become) compliant. While there are some significant changes in 3.0, I fear that many are overlooking a much larger change that they will have to make as the PCI Council implements its new standard for tokenization in the coming year.

Currently, tokenization to replace sensitive credit card data is governed by a PCI guideline. Remember that in PCI parlance a guideline is more of a “you ought to” whereas a standard is a “you have to.” What that means is when this new standard goes live (likely within the next 12 months), it will become a binding subsection of the PCI DSS that will apply to all merchants using any sort of tokenization solution.

The bright side: as part of this newly proposed tokenization standard, PCI will allow tokenization – when properly implemented – to reduce a merchant’s card data environment and therefore limit their PCI scope. (This means less time and money spent on PCI compliance efforts.)

Now, true to form for the PCI Council, they’ve gone about this process in a more broad (and somewhat confusing) manner than I would have liked, but – for once – I am actually happy with the end result. Here’s the gist:

PCI is aiming to vastly increase the breadth of what can be referred to as “tokenization,” including solutions much more closely related to encryption or hashing than to the original definition of tokenization that we brought to the industry in 2005. I could write a dozen pages on what a terrible idea this is (in fact my friend Steve already has, and you can find his scathing rant on the Shift4 blog) but, suffice it to say that they have officially bastardized something great in the name of making every company with a “tokenization” solution feel like a winner.

Thankfully, somewhere in their fuzzy logic they realized that in so doing, they had muddied the water so much that they had to come right out and admit that not all tokenization solutions are created equal and that those varied solutions would ultimately not all have the same effect on a merchant’s scope (or security).

In a discussion I had with PCI Council executives during their recent Community Meeting in Las Vegas, it was specifically confirmed that format-preserving (16-digit numeric tokens) will not allow for scope reduction under the new standard. While this technology (which I happen to hold multiple patents on – so don’t think I’m bashing on it for any sort of personal gain) may be sufficient to pass PCI DSS requirements, it is not enough to warrant a reduction in scope for merchants who use it. According to the proposed tokenization spec, merchants must be able to distinguish between a token value and an actual PAN – and you can’t do that with a format-preserving token.

It appears the Council has also finally realized that one-to-one tokens offer very little by way of security. Twice in the proposed new spec, the Council alludes to the fact that tokens that carry a one-to-one relationship with the original PAN may present risks to merchants. It makes sense; a token with a one-to-one relationship to the card almost always holds a mathematical relationship, which means it can be reversed. Worse yet, it doesn’t even have to be reversed to be dangerous. If a one-to-one token works at Hotel A, and a crook knows that Hotel B (likely of the same brand) uses the same processor, he can then use A’s tokens to illicitly book rooms and buy drinks at B’s property. The scariest part: because these pseudo-tokens aren’t considered card data, Hotel A doesn’t have to report them as lost or stolen. Imagine the legal question then of which property is liable for the breach (and the thief’s massive bar tab). It’s a mess! As I have told merchants for the better part of the last decade, “if you’re going to use garbage like that, you might as well just use the original PAN… and pray.”

Ultimately, there is one point hoteliers need to know: If you want to enjoy the benefits of reducing your PCI scope – both in time and dollar savings – you’ll need to get rid of format-preserving tokens and adopt a more secure solution. This will require development work on the PMS side and could require some changes to the way you’ve historically handled your tokens. However, a quick financial review makes it clear: in assessment costs alone, this investment will pay for itself in the first year.

Now many of you are considering what the implications of this are for your business. Candidly, it means the way that you have been doing things most likely will not allow you to qualify for a reduction in scope. It means that your current method of customer tracking and analytics could now come at the cost of putting you back in full PCI scope. Oh, and the way you’ve been sharing tokens with your brand partners may take you completely out of compliance. Looks like it may be time to start looking at doing things a bit differently.

Hospitality Upgrade made me promise I wouldn’t pitch any products on their blog, so I won’t. But I will offer you all some hope and just say that there are solutions currently available to allow you to maintain both analytics and token-sharing capabilities while meeting PCI’s newly proposed standard and gaining their promised – but elusive – scope reduction. Now it’s up to you to figure out where to find them. Good luck, and don’t say I didn’t warn you! 

About The Author
J. David Oder
President and CEO
Shift4 Corporation


J. David (Dave) Oder is the President/CEO of Shift4 Corporation. Dave is a hands-on manager who enjoys jumping into projects alongside his technical staff. An accomplished businessman, Dave has more than 35 years' experience in software development and accounting, spent mainly on overseeing software companies. Prior to founding Shift4, he was CEO of the Aerus Corporation, a pioneer of business accounting software, and owner of a successful consulting firm. Dave earned his Bachelor's degree in Business/Accounting and Master's degree in Computer Science as well as an MBA from University of California, Los Angeles.

 
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