The Indian hospitality sector, encompassing hotels, resorts, restaurants, and travel services, is increasingly reliant on digital technologies for operations, customer engagement, and service delivery. This digital transformation has significantly increased the volume and sensitivity of personal data collected, thereby raising concerns related to data privacy and cybersecurity. With the enactment of the Digital Personal Data Protection (DPDP) Act, 2023 and its operational Rules in 2025, India has entered a new era of data governance. This study examines the challenges, risks, legal frameworks, and cybersecurity practices within the Indian hospitality industry. Using qualitative research methods and secondary data analysis, the paper explores compliance gaps, emerging threats, and strategic measures required to safeguard customer data. The study concludes that robust cybersecurity infrastructure, regulatory compliance, employee training, and data governance frameworks are critical for ensuring trust and sustainability in the sector.