A&M’s Travel, Hospitality, and Leisure practice presents Staying Power, a series on how hotels can profitably deliver outstanding service and experiences to guests as they navigate the current market.
Hoteliers are well aware of the staff shortage and the tight labor market negatively affecting the industry. More than 30 percent of former hospitality workers have reported leaving the industry for good, disproportionately affecting the hourly hotel staff who choose to stay. Furthermore, inflation and other societal factors attributed to COVID-19 (such as the “Great Resignation”) are fueling labor shortages, driving costs up for hoteliers, and putting pressure on profitability.
According to the AAHOA Hospitality Labor Report, 76 percent of hotels are struggling to return a significant proportion of their workforce. Additionally, there is a backlog of development projects that are resulting in diminished service levels across segments.
Research found in Part 1: Addressing Labor Challenges Without Sacrificing Service explains four critical factors that drive employee retention and engagement, and shares steps hoteliers can take to address these challenges.