Hylink Group
Hylink Group commentary – Filling the data privacy gap
Hylink Group, which recently struck a strategic partnership with The Moodie Davitt Report, reflects on how we safeguard data privacy in travel retail in a new technological age.
In an era where the digitisation of airport travel is proliferating worldwide, elements such as biometric data, facial recognition, digital boarding passes, and contactless systems have seamlessly woven themselves into the fabric of the passenger experience.
This technological revolution has ushered in an era of data accumulation, where airports and their collaborative partners find themselves amassing an ever-expanding reservoir of information from a diverse array of stakeholders, including passengers, employees, tenants, concessionaires, and airlines.
Yet, in the midst of this data deluge that transcends industry boundaries, a pressing question requires our attention: What approach does the travel and travel retail sector employ to ensure the safeguarding of data privacy?
Fostering industry reputation
The travel retail industry has grappled with issues related to responsible practices for an extended period. As a sector that accounts for an estimated 11% of global emissions, Travel and Tourism (T&T) plays a pivotal role in the pursuit of global climate goals.
Notably, airlines have been at the forefront of efforts to mitigate their environmental impact. According to the International Air Transport Association (IATA), more than 50 airlines have successfully implemented offset programmes, seamlessly integrating them into their web-sales engines or partnering with third-party offset providers. As the industry makes significant strides in sustainability initiatives, it is imperative to be proactive in addressing the crucial aspect of data privacy, which can impact consumer trust and the industry's overall reputation in the future.
In the travel retail sector, data privacy is essential for several reasons. First is customer trust, as travellers expect their personal information to be handled appropriately. Travel retail manages a consumer at origin and destination.
A breach of data privacy can erode trust and damage reputation for actors in the industry. Second is compliance, travel retailers must adhere to various data protection regulations, such as GDPR in Europe, to avoid legal repercussions. Finally is an aspect relevant to the travel retail sector, personalisation, where marketing and recommendations rely on customer data and protecting data privacy is crucial for delivering tailored experiences without violating trust.
Hylink is also an expert on unlocking travel retail opportunities in China’s cosmetics and beauty landscape
Challenges to address
Privacy data collection is a ubiquitous aspect of an airport's operations, encompassing a wide array of functions. This data is harnessed to process transactions, streamline passenger and luggage movement, monitor crowd volumes and patterns, identify security threats through screening, and more. A glimpse into the evolving landscape of technology adoption and data utilisation in airports can be found in industry forums such as Airports Council International (ACI) and Future Travel Experience (FTE).
In recent years, these forums have shed light on prominent technology trends shaping airport operations. These encompass biometrics, blockchain, artificial intelligence (AI) and machine learning (ML), robotics, RFID applications in baggage management, chatbots, translation technologies, personalised wayfinding employing augmented reality, virtual reality, and immersive experiences, mobile app-driven ordering and delivery services, the internet of things (IoT), 5G cell phone connectivity, and cybersecurity.
Each of these advancements has the potential to revolutionise the way data is collected about individuals and, consequently, introduces new considerations regarding data privacy.
There are three key areas of concern. Firstly, data collection practices often involve the excessive gathering of information, risking both misuse and data breaches. Additionally, reliance on data from third-party providers must be approached cautiously to prevent vulnerabilities in the data ecosystem.
Secondly, data storage and security are paramount. Inadequate security measures can lead to unauthorised access, jeopardising the confidentiality of sensitive customer data. Establishing clear data retention policies is equally vital to ensure data is not stored longer than necessary, mitigating the risks associated with data storage.
Moreover, data sharing, often a necessity in vendor relationships, calls for meticulous contract agreements that prioritise data privacy and security. Lastly, data anonymisation, while critical for analytical purposes, remains a complex challenge in the sector. Striking the right balance between sharing anonymised data while safeguarding customer identities requires expertise and meticulous handling.
(Left to right) Hylink Group Americas Managing Partner Humphrey Ho; Hylink Group Account Director Tori Oh; Hylink Executive Planning Director Yukun Bi. Hylink is a Content Partner at The Trinity Forum in Hong Kong this month and both Ho and Bi will address the event.
Best practices
In ensuring robust data privacy practices, a multi-faceted approach is essential. First, transparent data policies play a pivotal role in building trust with customers. This involves clear communication of data collection practices and purposes, accompanied by the acquisition of explicit consent before gathering sensitive data.
Secondly, secure data storage is vital to safeguarding information. Implementing rigorous cybersecurity measures such as encryption and access controls, as well as regularly updating and patching systems, is crucial to prevent unauthorised access and data breaches.
Furthermore, data minimisation strategies help reduce risks associated with data handling. Collecting only the data necessary for specific purposes and periodically reviewing and deleting outdated information ensures that data holdings remain streamlined and secure.
Vendor management practices should also be rigorous, involving the vetting of third-party vendors for their privacy practices and the establishment of protection clauses in contracts. Lastly, anonymisation and pseudonymisation techniques are indispensable to protect customer identities while utilising data for analysis and marketing purposes. Continuous monitoring and auditing of data processes are essential to identify and address potential re-identification risks.
Additionally, compliance with local regulations like GDPR or CCPA is essential, encompassing principles such as the right to be forgotten, data portability, providing opt-out options, and maintaining transparent practices.
In conclusion, the travel and travel retail sector faces the dual imperative of embracing digital innovation while safeguarding data privacy. Adhering to best practices, fostering transparency, securing data, minimising unnecessary data collection, and addressing compliance with regulations are key steps in achieving this balance.
As the industry continues to evolve, its ability to effectively manage data privacy will play an integral role in maintaining trust, reputation, and responsible practices in the intersection of travel and technology.
The Moodie Davitt Report and Hylink strike content relationship
The Moodie Davitt Report, the world’s leading global travel retail information source, and leading independent agency Hylink Group have entered into a strategic content relationship aimed at delivering unparalleled depth and analysis to coverage of the Chinese traveller and China travel retail sectors at home and abroad.
In a collaborative effort, The Moodie Davitt Report and Hylink will unveil a series of exclusive reports encompassing industry trends, profound insights, best practices, branding strategies, and more.
These reports mark a significant shift away from the industry’s usual reliance on qualitative sources, in being primed to provide one-of-a-kind data directly from the field.
This groundbreaking partnership will kick off with an insightful presentation by Hylink Group Managing Partner Humphrey Ho at The Trinity Forum in Hong Kong on 25 October.
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The Moodie Davitt eZine
Issue 328 | 20 October 2023
The Moodie Davitt eZine is published 14 times per year by The Moodie Davitt Report (Moodie International Ltd). © All material is copyright and cannot be reproduced without the permission of the Publisher. To find out more visit www.moodiedavittreport.com and to subscribe, please e-mail kristyn@moodiedavittreport.com