PCI Compliance for the Travel and Hospitality Industry

The travel and hospitality industry is a large economic sector that comprises a wide range of products and services, including food and beverage services, lodging, event planning, and passenger transportation. By 2034, the industry is predicted to take over 11.4% of the economy, resulting in a $16 trillion contribution that year. But within this hyper-competitive space, there are industry-specific needs for frictionless, cost-effective payment processing. Read on to learn why PCI DSS compliance is crucial for the travel and hospitality industry, and how businesses can best achieve and maintain it. 

What is PPCI DSS (Payment Card Industry Data Security Standards) is a set of requirements designed to protect sensitive payment data. For businesses that accept credit cards, it makes sure that they maintain a secure processing environment. The standard is administered by the PCI Security Standards Council, and its use is mandated by major card brands including Visa, Mastercard, American Express, Discover, and JCB.

These regulations are a necessary protection against fraud, but because they are complex (with 12 broad requirements and over 300 sub-requirements to meet), it can be difficult to achieve compliance. And it’s not a one-and-done process. Without the help of a third party, maintaining good standing involves many steps that must be repeated year after year. Compliance is assessed annually through an audit by a PCI Qualified Security Assessor (QSA), and this process often demands large investments of time, money, and employee resources.

In 2022, the PCI Security Standards Council announced Version 4.0 of the PCI DSS. This update includes crucial new requirements like encryption of Sensitive Authentication Data (SAD) and protection against phishing attacks. Fortunately, with careful preparation and a clear understanding of the changes, merchants should be able to navigate the transition smoothly.CI DSS?

Travel and hospitality businesses are especially susceptible to fraud because they have access to significant quantities of payment data. According to PCI SSC International Director Jeremy King, this makes them a prime target for organized criminal activity. Fortunately, PCI compliance enables businesses to fight fraud before it happens.

Here are a few specific reasons why maintaining PCI compliance is particularly critical for travel and hospitality businesses. 

High Volume of Transactions

Electronic payments can facilitate seamless bookings and purchases for travelers, but the high volume of transactions makes customer data security a critical concern for the tourism sector, as it is a frequent target for cyberattacks and fraud. From online airline bookings and hotel reservations to payments on third-party travel websites like Expedia, customers regularly transmit sensitive personal and financial information (including passport numbers, addresses, and credit card details) online. Securing these payments with robust encryption, tokenization, and PCI DSS compliance is essential, as any data breach can lead to identity theft or unauthorized transactions.

Protection Against Data Breaches

The higher the transaction volume a business processes, the more customer data is at risk of exposure during a breach. Unfortunately, breaches are not uncommon. According to cybersecurity leader Trustwave, approximately 31% of hospitality organizations have reported experiencing a data breach in their company’s history, with 89% of these entities affected more than once within a year.

Consequences of non-compliance can include hefty fines, loss of customer trust and loyalty, expensive and lengthy legal issues, and, in severe cases, permanent damage to company reputation.

Regulatory Requirements

Legally, the tourism sector must navigate strict regulations to safeguard consumer data, including but not limited to GDPR (General Data Protection Regulation), CCPA (California Consumer Privacy Act), and HIPAA (Health Insurance Portability and Accountability Act). For EU residents, GDPR governs how organizations process personal data and sanctions those violating the rules. Similarly, CCPA gives California residents rights to access, delete, and control their private information. For medical or wellness tourism, HIPAA ensures the confidentiality of health data.

Compliance with PCI DSS secures payment transactions and reduces digital vulnerabilities. Achieving compliance complements these regulatory requirements by enforcing encryption and breach response measures. Especially for airline companies, safeguards like tokenization play a key role in securing payment data. 

For travel and hospitality businesses, the benefits of PCI DSS compliance are manifest. From enhanced data security to increased customer trust and loyalty, investing in fraud prevention strategies can help you take your cybersecurity efforts to the next level.

Enhanced Data Security: PCI DSS compliance strengthens your cybersecurity framework, reducing the risk of fraud and data breaches. 

Customer Trust and Loyalty: Demonstrating a commitment to data protection helps build consumer confidence, fostering long-term relationships with important clientele.

Competitive Advantage: For businesses such as travel agencies and airlines, which exist in an increasingly crowded marketplace, achieving and maintaining PCI DSS compliance can give you a necessary edge over competitors. You can also leverage PCI compliance as a selling point in your marketing efforts—it’s a simple and effective signal that you prioritize data security.

Avoiding Fines and Legal Issues: Last but not least, compliance is essential to avoid costly fines and lengthy, resource-draining legal complications.

In order to become PCI-compliant, it’s helpful to pursue a cohesive, incremental course of action—one that follows a logical, step-by-step timeline for addressing risks to cardholder data and your cardholder environment. For more on this, check out our blog post “PCI DSS 4.0: How to Become PCI Compliant.”

IXOPAY enables travel and hospitality companies to fast-track their PCI compliance. Looking for a partner who can do the heavy lifting for you? Contact us today to learn more.