As the hospitality industry faces new identity verification regulations across Europe, there is pressure on hotels to adopt digital identity solutions. As Spain’s hospitality industry learned in November, new legal requirements can be challenging.
The new Spanish law requires all hoteliers, including home rentals, campsites and car hire firms, to send information about all guests to the country's Ministry of the Interior. The data, collected for national security reasons, will include passport details, home addresses and payment methods. The new law has raised concerns over delays at check-in, onerous record-keeping and how to ensure data privacy.
Experts agree that hotels should act now to adopt digital identity solutions to smooth guest experiences. Hotels have long relied on manual processes to verify guest identities, but these outdated methods introduce friction, errors and inefficiencies.
Nick Price, CEO of NetSys Technology, said that hotels historically treated identity verification as an afterthought.
“Hotels still treat identity verification as a manual process—it’s slow, inefficient and prone to errors. That needs to change,” he said, adding that the alternative, sticking to paper-based ID verification, would be too cumbersome.
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“If a law like this is introduced and hotels try to comply manually, they will create massive friction for both staff and guests.”
And hoteliers should begin looking for ways to integrate digital ID systems with hotel IT systems, according to Gillian Jones, senior business development manager of Condatis.
“Hotels have incredibly complex IT estates—PMS [property management system], reservation systems, booking engines, OTAs [online travel agencies]. Trying to standardize identity across all of that is basically impossible. That’s where digital identity solutions come in,” she said.
Jones likened the situation with European digital identity to GDPR compliance, where the data privacy regulation caught some out because it wasn’t on their radar. The time to plan a digital identity integration is now, she said.
Solutions such as Condatis’ Cenda can simplify the process, Jones said.
“Cenda acts as an on-ramp and a bridge to decentralized identity. It handles trust frameworks, compliance and onboarding—so hotels don’t have to.”
The privacy issue raised by these types of laws could be solved by Europe’s eIDAS 2 identity wallet regulation. With these digital identity wallets, individuals can confirm their identity across the European Union (EU) while retaining complete data control. They only need to share whatever information is required at the transaction point, and the data is safely encrypted.
In October of last year, the European Commission proposed a new EU Digital Travel app, dedicated to travel identity, which EU and non-EU citizens can use with a biometric passport or EU identity card when traveling to or from the Schengen Area.
“Travelers will be able to create digital travel credentials and submit their travel plans and documents to the border authorities in advance to speed up checks at the border,” the Commission said in the announcement. “The app will require user consent before processing personal data. Border authorities will also receive training on data security and data protection rules before being allowed to access the data.”
While the app focuses on border crossing, it might also enable digital identity sharing at other points in the journey.
“EIDAS 2 is designed to solve this exact issue. It allows guests to verify their identity digitally, with minimal friction,” Price said. “Guests already use their phones for everything: shopping, banking, booking flights. They expect the same convenience at hotels.”
Between the different EU countries, each creating its own digital identity app and the various international digital identity systems that will ultimately be adopted, hotels must capture data from various systems.
Roger Olivieira said his startup VerID could help by connecting with multiple EU digital ID wallets and other travel credentials.
“If you’ve ever paid online, you know how easy it is to select a payment method. We do the same for identity, allowing guests to verify themselves seamlessly,” he said.
Olivieira said paper processes for identity records are outdated.
“Normally, people just hand over their passport, someone makes a photocopy and then types in the information manually. That’s just not necessary anymore,” he said.
Hotels still treat identity verification as a manual process—it’s slow, inefficient and prone to errors. That needs to change.
Nick Price, NetSys Technology
Adoption is straightforward. “Hotels can integrate this in half an hour. If you have a mobile phone, that’s the only infrastructure you need,” Olivieira said.
Price believes much of the identity verification process could begin at booking.
“The more check-in processes you can move upstream—before the guest arrives—the more you can focus on guests who need extra attention,” he said.
At arrival, Price sees the adoption of digital identities as an opportunity to enhance service. “A simple tap on an NFC reader at check-in could instantly verify identity, check in the guest, handle payments and issue a digital room key,” he said.
Jones encourages hoteliers to engage identity experts early. “If you’re a Hilton or a Marriott, you don’t have to figure this out alone. There are experts in identity who can guide you. Use them,” she said. “Start now. Start your proof of concept. Test and learn. Fail fast while you still have time to experiment—before you’re forced to respond to regulations and are already on the back foot.”
Both Price and Olivieira suggest thinking beyond compliance to service. “If hotels only see digital ID as a compliance issue, they’re missing the bigger opportunity: complete digital enablement of the traveler experience,” Olivieira said. “A fully digital experience means guests can check in, customize their stay and access their room—all from their phone, with no friction.”
Price has a similar vision. “Why do we even need a front desk? What is its purpose today? Airbnb has proven you don’t need one,” he said. “Instead of being stuck behind a computer, hotel staff could actually focus on hospitality—welcoming guests, helping them and enhancing their stay.”
Jones sees digital identity as a turning point. “We’re not just digitizing ID verification. We’re rethinking how people prove who they are—securely, instantly and globally,” she said. “Hotels that act now will be ahead of the competition. Those that wait will struggle to keep up.”
Hotels have a unique opportunity to turn compliance into a competitive advantage. By implementing digital identity solutions today, they can streamline operations, enhance guest experiences, and future-proof their businesses.
The shift to digital identity in hospitality is inevitable. Hoteliers must decide whether they will lead the way or struggle to catch up and experts agree it's time for action.
“This isn’t the future—it’s already here. The only question is: will businesses adapt, or will they be left behind?” Olivieira said.
Phocuswright Europe 2025
Join us in Barcelona from June 10 to 12 and hear Nick Price, founder of NetSys Technology, discuss the latest initiatives around self-sovereign identity and digital wallets.