Data sovereignty is becoming increasingly important and a growing topic of concern for different industries, specifically the travel industry, where sensitive user information is handled on a day-to-day basis. For Closed User Groups (CUGs) operating in the travel space, maintaining the integrity of their users’ data is not only necessary but also a competitive advantage they thrive on. However, many CUGs using closed-user group travel solutions with third parties face challenges navigating these intricacies.
This article explains how empowering CUGs in the travel industry with control over their own data will increase their sovereignty over that information and trust. Travel companies would, among other things, build higher levels of relationships with their most precious customers: frequent travelers, corporate clients, and loyalty program members.
Data Sovereignty Explained
Data sovereignty pertains to the ownership of sensitive information by the legal and governance structures of the country where the data were derived. Though data residency focuses on where data is stored, it also focuses on ownership, control, and adherence to those frameworks. It guarantees that the data is protected by the nation’s laws in which the cloud service or other platforms may have their headquarters.
For example, within the European Union, there is General Data Protection Regulation whereby companies collecting data from EU citizens must abide by certain strict privacy policies. The world has many such laws, such as the California Consumer Privacy Act in the U.S., the Personal Data Protection Act in Singapore, and the China Cybersecurity Law. All these frameworks, therefore, emphasize data sovereignty, requiring that personal data be treated according to national law implementing how one is able to transfer or access the said data internationally.
Understanding Data Sovereignty In the Context of Closed User Groups
For closed user groups, data sovereignty means that all data generated by the group’s members is stored and processed within the boundaries set by the CUG itself. This control extends to how data is shared, accessed, and used within the group’s platform and prevents third parties from exploiting this data.
Data sovereignty differs from general data privacy by placing data ownership squarely in the hands of CUG owners. Thus, it is an essential tool for those who wish to maintain operational independence, build trust, and prevent unauthorized data use.
It is crucial to understand that there is a reason why organizations are so concerned about their data. This data, collected over time, is information that allows these organizations to retain existing members and recruit new ones through strategic marketing initiatives.
How Can Data Control Empower a CUG?
The nature of the CUG landscape in the travel industry requires data sharing between suppliers and key players such as hotels, airlines, and others. Furthermore, a lot of these CUGs are small operations and cannot afford extensive cybersecurity teams or infrastructure. As such, the responsibility befalls third-party CUG travel solutions providers to ensure data privacy and sovereignty for these organizations. r
Here are some obvious benefits of these closed user groups having full control over their data:
- Enhanced Trust and Customer Loyalty: By maintaining control over user data, CUGs build a foundation of trust with their members. When customers know their data is secure, they are more likely to remain loyal.
- Operational Flexibility and Customization: Data sovereignty enables CUGs to adapt their platforms to suit their unique operational needs. This flexibility is key to offering personalized services that resonate with members.
- Improved Security and Risk Management: Keeping data within the CUG’s control means fewer opportunities for unauthorized access or breaches, which is critical in today’s cyber threat landscape.
- Data Monetization and Insights: Controlling data allows CUGs to generate valuable insights into member behavior, enabling better decision-making. Additionally, CUGs can explore data monetization opportunities in ways that align with member trust.
What are Some Best Practices a Closed User Group Have Around Handling Member Data
As data ownership and control are important for the CUG, it also has some responsibility toward its members. Here are some basic best practices to follow:
1. Data Ownership and Control:
Every CUG member should maintain ownership rights over his or her data, such as control or access to view, alter, or delete it according to his or her preference. A loyalty program member can easily update his travel preferences, check previous travel histories, or delete saved payment methods from an intuitive online dashboard.
Travel companies should engage in user-friendly platforms that allow CUG members to exercise rights fluidly. In addition, the companies should ensure that users have the freedom to withdraw consent for processing or sharing of data at all times.
2. Compliance with local regulations
Travel companies, in turn, should be informed about local data protection legislation so they always know what they must do to comply. Generally, such explicit consent by the user, where such user’s data could be collected, processed, and shared, should be sought.
For example, if a frequent traveler is a citizen of the European Union, then this company has to follow the standards of GDPR; for instance, it shall ensure the “right to forget” in that user’s profile.
3. Security Measures
More importantly, whenever data has to be transferred abroad for processing, the company must ensure that it complies with cross-border data transfer laws. For example, some regions, such as the EU, prohibit or limit data transfers to countries that are not regarded as adequately protecting privacy, such as certain states in the US. Advanced security measures should be employed to guard against theft or unauthorized access by third-party parties of user data.
For instance, one or a combination of encryption techniques must be utilized to preserve data confidentiality when the data is in transit and at rest, while files must be stored securely to ensure that unauthorized parties cannot gain access.
For example, an agency dealing with CUG information should have an MFA when accessing personal accounts. Security audits should be conducted regularly to identify vulnerabilities and check against compliance with international standards on security.
4. Transparency and Trust:
Transparency is also an important factor in building trust with CUG members. Travel companies should feature clear and easily understandable privacy policies detailing what information will be collected, how it will be used, and to whom access will be granted.
Trust could also be expressed through clear communication. For instance, concerns about data management and changes in privacy policies could be communicated to CUG members annually. Such openness is not only statutory compliance but also ensures customer loyalty.
Also, read this article: Maximizing the Value of Financial Co-Brand Cards with Travel Benefits
How Custom Travel Solutions Empowers Closed User Groups With Data Sovereignty?
Custom Travel Solutions’s motto is “We serve you and your members” for our clients. We strongly oppose giving our clients full control over their data use. Our client’s data is fully under their control and manageable through their back office.
We are a GDPR-compliant organization and also abide by all necessary data privacy rules for the travel industry. We also have stringent cybersecurity measures and checks in place to ensure our client’s assets are safe and secure from any data breach.
Are you interested in learning how we do this and offer our clients a world of benefits for members? Book a demo.
