How high labor costs are taking a toll on the hospitality industry.
HSMAI recently gathered insights from leaders at Apple Hospitality REIT, Ashford, BRE Hotels and Resorts, Noble, Pebblebrook Hotel Trust, Summit Hotel Properties, and Abu Dhabi National Hotels during its Ownership Group Commercial Executive Roundtable.
Hotels need to adopt a new operating model where variable labor and administrative costs are kept at a minimum, and staff are given ample opportunity for personal and professional development. It’s a systemic change and not something that can be solved with a patchwork remedy.
Now is the time to make changes to attract the employees back. We have the opportunity to build the industry back better…together.
Most notably we have an industry which is critically understaffed for both skilled and unskilled workers and this will mean restrictions on what tourism operators can offer and their ability to scale up to meet demand.
One thing is clear, with dirty rooms and guests waiting in the lobby, no one in the hotel has time to care about prices and revenue management. Increased salaries may be needed to lure enough staff to get hotels back on their feet.
There are certainly no shortcuts nor easy solutions when it comes to shortage of labor but here are some solutions that travel and hospitality practitioners will want to focus on in the coming months and years.
While it may appear as though these graduates might not be a good fit for your hotel at first glance, the fact is, they bring so much more to the table than you might initially realize.
The J-1 Program is a valuable way to provide training, education and cultural experience for international hospitality students seeking to enhance their knowledge and skills. In exchange, hotels can supplement their workforce with eager and educated staff.
Never miss a trend.