Recent suggestions state that capitalism has the answer, as states start putting an end to jobless payments. Is this the solution? Or are industries specifically the hotel industry oversimplifying the problem?
With travel demand accelerating rapidly, the hospitality industry is experiencing a new major challenge: labor shortages resulting in sharply rising labor cost in the U.S., which consumed as much as 87% of RevPAR (CBRE) in Q1, 2021.
If you hadn t heard, hotels are facing a labor crisis. After major furloughs and layoffs last year due to the pandemic, properties now need to staff up to be prepared for the return of business. But they are facing a drought of workers, which some call the worst recruiting climate in the industry s history. Advertisements
Making conditions even more challenging is the fact that the dearth of prospective employees could be attributed to several factors, and it s unclear which ones are the biggest obstacles. These include immigration issues, specifically over H-2B visas, which, in the U.S., the Biden Administration is addressing, unemployment insurance and a migration of talent to other industries.
Hotel Effectiveness Growth Outpaces Hotel Industry Recovery
Hotel Effectiveness Reports 13th Consecutive Year of Company Growth, Expanding Leadership Team, and New Customer Relationships
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ATLANTA, May 6, 2021 /PRNewswire/ The leisure travel season is heating up, and hotels are building back to full capacity. Hotel Effectiveness is rising to the challenge by helping more than 5,000 hotels return to profitability through labor optimization.
Three of the largest hotel management companies in the industry, Pyramid Hotel Group, Prism Hospitality, and Highgate Hotels have recently rolled out PerfectLabor™, the flagship product of Hotel Effectiveness. These three notable management companies add more than 260 properties to the company portfolio.
Some changes made to cope with the pandemic likely will be industry norms, while the crisis also spotlighted the need for new practices to be put in place. Advertisements
When the coronavirus pandemic surged worldwide in 2020, sending hotel occupancy into free-fall, owners and management companies worked to reduce labor costs wherever possible. On top of layoffs and furloughs, corners were cut when they could be without damaging the guest experience and many employees were tasked with multiple jobs.
Now, as the industry gears up to get back to business, what will hoteliers do to control labor costs? How many measures that have been deployed over the past year to avoid the destruction of gross operating profit will remain in place?