Restaurant And Hospitality News – August 29, 2016
By Christine Kern, contributing writer
In news this week, another POS data breach hits the hotel industry; Pokémon Go is helping fuel hotels; and McDonald’s announced a voluntary recall of its children’s fitness trackers.
HEI Hotels Acknowledges POS Data Breach
HEI Hotels & Resorts has acknowledged that cybercriminals were able to install malware in the point-of-sale systems of properties across the Starwood, Marriott, Hyatt, and Intercontinental brands, gaining access to customer data including payment card information. The attacks at 20 properties were from March 2015 to June 2016. While no numbers were released concerning affected patrons, in a separate FAQ, HEI representatives stated, “We believe that malware may have accessed payment card information in real-time as it was being inputted into our systems.” The hotels do not store credit or debit card numbers or collect personal identification numbers or social security numbers on its own system, according to PC World.
The notice stated, “Unfortunately, like many other organizations, we recently became aware that several of our properties may have been the victim of a security incident that could have affected the payment card information of certain individuals who used payment cards at point-of-sale terminals, such as food and beverage outlets, at some of our properties. We take very seriously our responsibility to keep our customers’ information secure, and have mounted a thorough response to investigate and resolve this incident, bolster our data security, and support our customers. We are pleased to report that the incident has now been contained and individuals can safely use payment cards at all of our properties. We are sorry for any concern or frustration that this incident may cause.”
HEI spokesman Chris Daly told PC World that the company is working with credit card processors to obtain the exact number of affected card holders, stating: "Due to guests paying in multiple outlets during a stay or even visiting multiple times, or visiting multiple locations managed by HEI, an exact number is difficult to calculate. Furthermore, HEI does not store credit card details.”
Other hotels have also seen recent POS or malware attacks, including Omni Hotels & Resorts in Dallas, Hyatt Hotels, Target, Starwood Hotels & Resorts Worldwide and Hilton Worldwide Holdings, while Neiman Marcus also reported data breaches through their point-of-sale systems.
New York Hotels Leverage Pokémon Go To Fuel Traffic
A recent Hotels.com study has found that geo-tagging, community building, and popular landmarks are among the new ways that mobile gaming is impacting travel and hotels can leverage these trends for higher traffic. The survey found that New York is the top city when it comes to U.S. “Pokétels,” followed by San Francisco, Boston, Chicago, and Washington, D.C., while Paris hosts 6 of the top 10 international “Pokétels.” And when it comes to travelers, they say that free hotel Wi-Fi is more important than free breakfast, because it means that guests can play Pokémon Go.
The study surveyed more than 500 millennial travelers based in the U.S. and learned that more than half of them (79 percent) said they plan to play Pokémon Go on their next vacation and that nearly half (48 percent) said that they would consider trying a new spot to play the game.
“This is an exciting time for the travel industry,” explained Taylor L. Cole, APR travel expert for Hotels.com. “People are visiting new destinations and exploring landmarks and places they never thought to see –whether it’s in your city or across the globe. Our surveys have always shown us how spontaneous travelers can be and Pokémon Go is no exception.”
McDonald’s Recalls Happy Meal Fitness Trackers
McDonald’s recently introduced fitness trackers as an alternative to toys in its children’s Happy Meals, but now has announced a voluntary recall of some 29 million wristbands distributed in the U.S. and an additional 3.6 million in Canada, according to The Nation’s Restaurant News. The recall follows the receipt of more than 70 reports of incidents of rashes and blistering after wearing the wristbands. The recalled activity wristbands come in two styles: “Activity Counter” and “Light-up Band,” available in six bright colors, and were made in China.
"Nothing is more important to us than the safety and well-being of our customers which is why upon learning about concerns with these bands we acted swiftly to stop distribution of these products," said company's spokesperson Terri Hickey in a press release on Tuesday. "We apologize to our customers who were impacted and for the inconvenience this recall has caused."
“Take the wristbands away from children immediately and return them to any McDonald’s restaurant for a replacement toy and either a yogurt tube or a bag of apple slices,” the company said on its website. McDonald’s said that it evaluated the safety of the wristbands through a third-party laboratory and they were determined to be safe. “While we do not yet know what may be causing these incidents, we believe it is appropriate to recall these wristbands from consumers in an abundance of caution,” the company said.
As CNN reported, McDonald’s decision to include the device opened lively debate about whether or not they would actually encourage children to be more active, or whether it was just another marketing ploy by the fast food giant. Jennifer A. Emond, assistant professor of pediatrics at Dartmouth Geisel School of Medicine, told CNN that the promotion is "not a credible way to promote healthy lifestyles to children. It’s a common tactic used by food manufacturers. They promote their products alongside with healthy lifestyles," Emond explained that the danger of such a marketing strategy is that it diverts parents' attention away from poor nutrition by focusing on the “energy out” side of health rather than on the healthy “energy in” side.