Practical Example: How a Family-Owned Hotel Can Improve Its Cybersecurity

Today, hotels are much more than places where guests stay overnight. They manage reservations, process payments, store guest information, and use many digital systems every day. These systems help hotels provide better service, but they also create new security risks.

Many hotel owners think that cyberattacks mainly target large international hotel chains. In reality, small and medium-sized hotels are also attractive targets. They often have limited information technology resources and fewer cybersecurity specialists, making them easier for attackers to target. So, how can a hotel build a strong cybersecurity strategy? The first step is to understand how the business works, identify the most important risks, and decide which security measures should be introduced first.

In this practical example, we will look at a realistic hotel with around 120 rooms, a restaurant, a spa, and a small conference area. Like many hotels today, the business depends on several connected digital systems. These include a reservation system, payment systems, guest and employee wireless networks, electronic room key systems, security cameras, and other connected devices.

Everything seems to work well. Guests can check in quickly, employees can manage reservations without problems, and daily operations run smoothly. However, hidden security weaknesses can still exist. A single phishing email, stolen password, or outdated software update may be enough to put guest information and business operations at risk.

In the following example, we will see how a hotel can create a practical cybersecurity strategy, reduce its biggest risks, and improve its security step by step.

 

 

Why Hotels Are Attractive Targets

Hotels sit on a goldmine of sensitive data. A single reservation record can include a guest’s full name, home address, passport or national ID number, travel dates, loyalty program details, and — critically — payment card information. Multiply that by thousands of guests a year, retained for months or years in the PMS, and you get a database that’s extremely valuable on underground markets. Unlike a single stolen card number, a full guest profile enables identity theft, targeted fraud, and even physical security risks (knowing exactly which room a specific person is staying in).

Several structural features of the hospitality industry make this data harder to protect than in many other sectors:

High staff turnover. Hotels often have some of the highest turnover rates of any industry, especially in front-desk, housekeeping, and seasonal roles. This makes it difficult to maintain a consistent security culture — by the time an employee is fully trained on phishing awareness and password hygiene, they may already be moving on. It also means credentials, key card permissions, and system access need constant re-provisioning and revoking, a process that’s easy to neglect under operational pressure.

Many third-party vendors. A single hotel typically connects to a long chain of external partners: online travel agencies and booking platforms, channel managers that sync availability across sites, payment processors, laundry and cleaning contractors, maintenance and elevator service providers, and sometimes franchise or chain-wide central reservation systems. Each of these connections is a potential entry point — attackers frequently breach a smaller, less-secured vendor first and then use that trusted connection to reach the hotel’s own systems. This pattern is behind some of the largest hospitality breaches on record, where attackers gained a foothold through a reservation system shared across an entire hotel group rather than attacking a single property directly.

Legacy systems. Property management and point-of-sale software is often deeply embedded in daily operations — staff are trained on it, it’s integrated with dozens of other tools, and replacing it is expensive and disruptive. As a result, hotels frequently run older software versions with known, unpatched vulnerabilities for far longer than security best practice recommends. Some PMS or POS terminals may even run on operating systems that are no longer officially supported, simply because upgrading the underlying hardware isn’t in the budget.

Open, guest-facing networks. Guest Wi-Fi has to be simple: no complicated setup, no friction, available to hundreds of different devices from different countries and manufacturers. That usability requirement is in direct tension with security best practice, which favors segmentation, authentication, and monitoring. Many hotels also offer “smart” in-room technology — Wi-Fi-connected TVs, voice assistants, or thermostats — that expands the attack surface further and is rarely covered by the same patching discipline as core IT systems.

Taken together, this combination — high-value data, a wide and shifting vendor ecosystem, aging core systems, and networks designed for openness rather than control — makes hotels a favorite target for both opportunistic criminals (credential-stuffing attacks, card skimming) and organized groups running large-scale data theft or ransomware campaigns. Several major international hotel chains have suffered exactly this kind of breach in recent years, with incidents affecting hundreds of millions of guest records or forcing properties to fall back to manual, pen-and-paper check-ins for days at a time.

 

 

The Scenario

Imagine a family-owned hotel with around 40 employees. The hotel has 120 guest rooms, a restaurant, a small spa, and several conference rooms for business events. Every day, the staff manage reservations, welcome guests, process card payments, answer emails, and coordinate housekeeping through a variety of digital systems.

Like many modern hotels, the business depends on technology. A Property Management System (PMS) stores guest information and reservations, Point-of-Sale (POS) systems handle restaurant payments, electronic key card locks provide room access, and separate Wi-Fi networks are available for guests and employees. Security cameras, office computers, smartphones, tablets, and other connected devices all play an important role in the hotel’s daily operations.

A few weeks ago, the reception team received what appeared to be a legitimate email from a well-known booking platform. The message looked professional, used familiar branding, and urged the recipient to verify their account. Believing the email was genuine, an employee clicked the link and entered their login credentials.

Fortunately, the incident was discovered before the attackers could misuse the account or gain access to other systems. No guest data was compromised, and business operations continued without interruption.

However, the incident was a wake-up call for the hotel’s management. They realized that the next phishing email might not end so well. Instead of waiting for a more serious cyberattack, they decided it was time to develop a structured cybersecurity strategy that would protect both the business and its guests.

The first question was simple:

How can we reduce our cybersecurity risks and prevent something like this from happening again?

 

 

 

Step 1: Understand the Business

The first step is not installing new security software or investing in the latest firewall. It is understanding how the hotel operates. Every hotel has its own processes, technologies, and business priorities. Even hotels of a similar size may use different reservation systems, payment platforms, cloud services, or external IT providers. As a result, a cybersecurity strategy that works well for one business may not be suitable for another.

Before making any recommendations, it is important to understand how employees work on a daily basis, which systems support the hotel’s operations, and which information is most valuable to the business. This includes identifying how reservations are managed, how guest information is processed, how payments are handled, and how employees access company systems both inside and outside the hotel.

It is equally important to determine who has access to sensitive information and which business processes would be affected if a cyberattack disrupted normal operations. For example, losing access to the reservation system during the holiday season would have a much greater impact than a temporary outage of a less critical application. Understanding these priorities helps focus security efforts where they provide the greatest benefit.

During this assessment, attention should also be given to the hotel’s existing security measures. Management should know whether systems are regularly updated, whether backups are tested, whether multi-factor authentication is used, and whether employees have received cybersecurity awareness training. These discussions often reveal strengths as well as gaps that may not have been noticed before.

The purpose of this first step is not to find immediate solutions or assign responsibility for past mistakes. Instead, it is to build a clear understanding of the hotel’s business, its critical systems, and its daily operations. Only with this knowledge can a cybersecurity strategy be developed that is practical, realistic, and aligned with the hotel’s specific needs.

 

Step 2: Analyze the Incident

Once the business has been understood, the next step is to carefully analyze the security incident. The objective is not to assign blame but to understand exactly what happened, why it happened, and how similar incidents can be prevented in the future.

In this example, the phishing email appeared to come from a trusted booking platform. It was professionally designed and looked convincing enough for an employee to believe it was legitimate. After clicking the link, the employee entered their login credentials into a fake website that had been created to steal account information.

Although the incident was detected before any significant damage occurred, it exposed several important questions. How was the phishing email able to reach the employee’s inbox? Were existing email security measures sufficient? Did the employee have the knowledge and confidence to identify suspicious messages? Could multi-factor authentication have prevented attackers from accessing the account even if the password had been compromised?

A thorough incident analysis also examines whether the attack was limited to a single account or whether other systems may have been affected. Security logs, authentication records, and network activity can provide valuable information about what happened after the credentials were entered. Even when no immediate damage is visible, it is important to verify that attackers did not attempt to access other systems or move further into the network.

Every security incident provides an opportunity to learn. Rather than viewing the event as a failure, the hotel should treat it as valuable feedback that highlights weaknesses in its security processes. Understanding how the attack succeeded allows management to make informed decisions about where security improvements will have the greatest impact.

By the end of this step, the hotel has a much clearer picture of the incident, the vulnerabilities that were exploited, and the measures that can reduce the likelihood of a similar attack in the future.

 

Step 3: Prioritize the Risks

After analyzing the incident, the next step is to decide which cybersecurity risks should be addressed first. No organization has unlimited time, budget, or resources, so it is rarely practical to implement every security improvement at once. An effective cybersecurity strategy focuses on reducing the risks that are most likely to occur and that would have the greatest impact on the business.

For this hotel, the phishing incident has already shown that employees are a potential target for cybercriminals. However, phishing is only one part of the overall risk landscape. Weak or reused passwords, missing multi-factor authentication, outdated software, poorly protected Wi-Fi networks, or unreliable backup procedures could also expose the hotel to unnecessary risks.

Each risk should be evaluated by considering two key factors: how likely it is to happen and how serious the consequences would be if it did. For example, a ransomware attack that prevents access to the reservation system during the peak holiday season could disrupt guest services, delay check-ins, and result in significant financial losses. On the other hand, a less critical issue with limited business impact may not require immediate attention.

By ranking risks according to their likelihood and potential impact, management can focus its efforts where they will provide the greatest benefit. This structured approach helps ensure that cybersecurity investments are based on real business priorities rather than on fear or the latest headlines.

Risk prioritization also makes it easier to plan security improvements over time. Instead of trying to solve every problem immediately, the hotel can concentrate on the most critical issues first and gradually strengthen its overall security posture. This creates a practical and sustainable cybersecurity strategy that supports the business without disrupting its daily operations.

Step 4: Develop a Tailored Cybersecurity Strategy

After identifying and prioritizing the most significant risks, the next step is to develop a cybersecurity strategy that fits the hotel’s specific needs. At this stage, the focus shifts from analysis to action. Rather than implementing every possible security measure at once, the hotel creates a realistic roadmap that allows improvements to be introduced gradually without disrupting daily operations.

A phased approach makes it easier for employees to adapt to new security practices while giving management enough time to evaluate progress and adjust the plan if necessary. Each stage builds on the previous one, creating a stronger security foundation over time.

Month 1: Strengthen Account Security

The first priority is to secure user accounts, as compromised credentials are one of the most common entry points for cybercriminals. The hotel introduces a stronger password policy that encourages employees to create unique passwords for every business account. At the same time, Multi-Factor Authentication (MFA) is enabled wherever possible, especially for email accounts, reservation systems, cloud services, and remote access solutions. These measures significantly reduce the risk of unauthorized access, even if a password is stolen through a phishing attack.

Month 2: Improve System Protection

With account security strengthened, attention turns to the hotel’s technical infrastructure. Existing backup procedures are reviewed to ensure that critical business data can be restored quickly after a cyber incident. Backup copies are tested regularly instead of simply assuming they will work when needed. Operating systems, business applications, and reservation software are updated to close known security vulnerabilities. Any outdated or unsupported software is identified and scheduled for replacement.

Month 3: Build Employee Awareness

Technology alone cannot stop every cyberattack. Employees play a vital role in protecting the business, particularly in departments such as reception, administration, and finance, where staff interact with emails and external partners every day. During this phase, the hotel provides cybersecurity awareness training that teaches employees how to recognize phishing emails, suspicious links, fake login pages, and social engineering attempts. Staff also learn how to report unusual activity quickly so that potential threats can be investigated before they escalate.

Month 4: Prepare for Future Incidents

Even with strong preventive measures in place, no organization can completely eliminate cyber risk. For this reason, the final stage focuses on preparedness. User access permissions are reviewed to ensure that employees have access only to the systems they need for their roles. The hotel also develops an incident response plan that clearly defines responsibilities, communication procedures, and recovery steps in the event of a cyberattack. Knowing exactly what to do during an incident helps reduce confusion, minimize downtime, and speed up recovery.

By following a structured roadmap like this, the hotel steadily improves its cybersecurity without overwhelming employees or interrupting business operations. Instead of reacting to threats only after they occur, management takes a proactive approach that strengthens both the organization’s resilience and its ability to respond effectively to future cyber incidents.

 

 

Step 5: Involve the Employees

Even the most advanced cybersecurity technologies cannot fully protect a business if employees are not involved. Firewalls, antivirus software, and security monitoring tools are essential, but many cyberattacks still begin with a simple email, a phone call, or a convincing message designed to deceive a person rather than a computer.

In a hotel environment, employees interact with guests, suppliers, booking platforms, and payment providers throughout the day. Reception staff process reservations, finance teams handle invoices, and managers regularly receive emails containing sensitive business information. Because of these daily activities, hotel employees are frequently targeted by phishing attacks and other forms of social engineering.

For this reason, cybersecurity awareness should become part of the hotel’s culture rather than a one-time training session. Employees should understand how to identify suspicious emails, recognize fake login pages, verify unexpected payment requests, and respond appropriately when something does not seem right. They should also know that reporting a potential security incident immediately is encouraged, even if they are unsure whether a mistake has been made.

Creating an open and supportive environment is equally important. Employees should never feel embarrassed about reporting suspicious activity or admitting that they may have clicked on a malicious link. The sooner an incident is reported, the faster the IT team or external service provider can investigate and contain the threat. Early reporting can often prevent a minor mistake from becoming a major security incident.

Regular awareness training, simulated phishing exercises, and clear security policies help employees build confidence and make better security decisions in their daily work. Over time, these activities strengthen the hotel’s overall security posture and reduce the likelihood of successful attacks.

Ultimately, cybersecurity is not only an IT responsibility. It is a shared responsibility across the entire organization. When employees understand the risks and know how to respond, they become one of the hotel’s strongest defenses against cyber threats.

 

 

Conclusion: how to create a cybersecurity strategy for a hotel

Creating a cybersecurity strategy for a hotel is not about buying the latest security software or implementing every available security control. It begins with understanding how the business operates, identifying its most valuable assets, and recognizing the risks that could have the greatest impact on daily operations.

As this practical example demonstrates, an effective cybersecurity strategy follows a structured process. First, the business and its critical systems are assessed. Next, security incidents and vulnerabilities are analyzed to understand where improvements are needed. The identified risks are then prioritized, allowing management to focus on the areas that matter most. Finally, practical security measures are introduced step by step while employees are actively involved through awareness and training.

Cybersecurity is not a one-time project. Technology evolves, new threats emerge, and business processes change over time. For this reason, a cybersecurity strategy should be reviewed regularly and adapted whenever new risks or business requirements arise.

For family-owned and independent hotels, taking a proactive approach can significantly reduce the likelihood of costly cyber incidents. By combining technical safeguards with informed employees and a clear security roadmap, hotels can better protect guest data, maintain business continuity, and strengthen the trust that guests place in their business every day.

 

Want to put these recommendations into practice?

Download my Hotel Cybersecurity Checklist and quickly assess whether your Business is protected against common cyber threats. The checklist helps you review important security measures, identify potential weaknesses, and take practical steps to improve your cybersecurity. No email address required – free download via Boxcloud.

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Reading about cybersecurity is a great first step. Knowing where your own business is at risk is even more valuable. With my 1:1 Cyberecurity Mentoring, I personally guide you through the most important areas of your cybersecurity. Together, we review your current security practices, identify weaknesses, and develop practical improvements that fit your business. No technical jargon, no generic advice—just clear, actionable guidance you can apply immediately.

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I also recommend reading the following articles

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Cordula Boeck
Cordula Boeck

As a cybersecurity consultant, I help small and mid-sized businesses protect what matters most. CybersecureGuard is your shield against real-world cyber risks—built on practical, executive-focused security guidance. If you believe your company is insignificant to be attacked, this blog is for you.

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