Skip to content

Search

Latest Stories

HVS: Hospitality industry should re-focus on staffing challenges

More incentives may be needed to attract new employees

HVS: Hospitality industry should re-focus on staffing challenges

THE HOSPITALITY INDUSTRY needs to re-focus its efforts to meet future staffing requirements if it is to increase interest by job seekers, according to consulting firm HVS. At the moment, the hospitality industry is a jobseeker’s market and likely to stay that way for the next year or two.

Hence, industry leaders should adapt to survive, said Court Williams, CEO of HVS Executive Search in New York in an article titled ‘How to Resolve the Current State of Emergency in Hospitality Employment’. Williams stated that “successful recovery from the pandemic will depend on revising every aspect of sourcing, attracting, compensating, incentivizing, and retaining workers.”


“The hospitality industry has seen a decrease in staff as many people have found alternate career paths as a result of the impacts of COVID-19. Historical talent shortages are being exacerbated by staff quitting in droves as the world returns to work,” Williams said in the article. “Now, the onus is on companies to show employees why they should apply for jobs or stay in their current positions.”

According to him, by developing a collaborative culture, hospitality companies can circumvent many staffing issues that arise.

“Today’s employees, especially millennials and Generation Z, want a stronger voice in their positions. They want to feel like they’re a part of something and have value, not just a worker or a number. With other industries now offering higher compensation to entice people, many former restaurant and hotel workers are quitting in favor of jobs that pay even slightly more.

“Employees want flexible workplace options to allow for remote working and caring responsibilities, and they're willing to quit to get them.”

A recent survey revealed that low pay, inadequate employee benefits, and a stressful workplace are preventing former restaurant and hotel staff from going back to their jobs.

“For many people employed in hospitality, what started out as a “dream job” had become a whirlwind of long hours, demanding customers, and insufficient sleep long before the pandemic. Already disillusioned with the status quo and work/life balance, when COVID-19 came along and they were furloughed or laid off, they had plenty of time to rethink their futures,” Williams wrote.

“Burnout is a big reason for the expected spike in resignations, with August 2020 research showing that 58 percent of employees were burnt out, compared with 45 percent in the early days of the pandemic. Complaints include heavy workloads during the pandemic, balancing work and personal lives, and a lack of communication, feedback, and support from employers.”

Williams pointed out that one of the major factors employees consider in the hospitality industry is safety as most jobs have a high possibility of exposure simply by virtue of contact with the public.

“Most casual and part-time restaurant and hotel workers aren’t eligible for health insurance or other benefits. Many of those who found work in other industries have discovered the health insurance alone is worth making a move. Hospitality employees across the board are demanding better healthcare options and other benefits, such as paid time off, study assistance, and wellness programs. Companies that offer additional benefits such as a 401(K) or long-term disability might well start seeing these as game-changers,” Williams wrote.

“To attract the staff they want, companies will need to offer better employee safety and security options. These include support against aggressive guests, protections against COVID-19 infection, and some form of security against future workplace disruptions caused by pandemics, natural or other disasters,” Williams wrote. “Companies paying minimum wage or slightly higher are realizing they have to offer fair compensation if they want to attract quality staff. Wage growth is accelerating for leisure and hospitality. Average hourly earnings fell during the pandemic but have grown at a fast clip in 2021.”

He also suggested that flexible work models including working from home part or full-time, and sourcing talent from other geographical areas with help to relocate might attract staffing. According to Williams, a simple job application process can also make a huge difference.

In a recent blog post, HotStats also advised that hotels should focus now on asset navigation and staffing models as occupancy and costs are gradually increasing.

More for you

U.S. Hotel Construction Hits 20-Quarter Low in June

CoStar: Hotel construction drops in June

Summary:

  • U.S. hotel rooms under construction fell year over year for the sixth straight month in June, hitting a 20-quarter low, CoStar reported.
  • About 138,922 rooms were under construction, down 11.9 percent from June 2024; the luxury segment had 6,443 rooms, up 4.1 percent year over year.
  • Lodging Econometrics recently said Dallas led all U.S. markets in hotel construction pipelines at the end of the first quarter, with 203 projects and 24,496 rooms.

THE NUMBER OF U.S. hotel rooms under construction declined year over year for the sixth straight month in June, reaching a 20-quarter low, according to CoStar. Additionally, more than half of all rooms under development are in the South, mostly outside the top 25 markets.

Keep ReadingShow less
Chart showing decline in U.S. extended-stay hotel occupancy and RevPAR in May 2025

Report: May fifth month for drop in extended-stay occupancy

Summary:

  • Extended-stay occupancy fell 2.2 percent in May, the fifth straight monthly decline; ADR and RevPAR also dropped for a second consecutive month.
  • May marked 44 straight months of supply growth for the segment at 4 percent or less, with annual growth below the 4.9 percent long-term average.
  • Extended-stay room revenues rose 0.5 percent, while total industry revenue grew 0.9 percent, led by segments with little extended-stay supply.

EXTENDED-STAY HOTEL occupancy fell 2.2 percent in May, the fifth consecutive monthly decline, exceeding the 0.7 percent drop reported for all hotels by STR/CoStar, according to The Highland Group. Extended-stay occupancy was 10.5 percentage points above the total hotel industry, at the lower end of the long-term average premium range.

Keep ReadingShow less
Auro Hotels Showcases India Culture at TCMU Exhibit

Auro unveils 'India Cultural Corner' for children

Summary:

  • Auro Hotels opened the India Cultural Corner, where children can check in and explore Indian culture at The Children's Museum of the Upstate.
  • Families can engage with community art, activities and storytelling about daily life in India.
  • The exhibit runs through May 2026, offering interactive learning on Indian culture.

AURO HOTELS RECENTLY opened the India Cultural Corner at The Children's Museum of the Upstate in Greenville, South Carolina, offering a look into Indian stories for American families. The exhibition, held at The Grand Geo Hotel and running through May 2026, includes a hotel desk where children can check in and explore Indian culture through interactive activities.

Keep ReadingShow less
U.S. Firms Lose $2.4 Trillion by Skimping on Business Travel

Report: Business travel gaps cost U.S. firms $2.4T

Summary:

  • U.S. companies risk losing more than $2.4 trillion in sales due to underinvestment in business travel, says GBTA.
  • An 8.3 percent T&E increase could drive a 6 percent sales gain, despite post-COVID virtual meeting tools.
  • Current T&E spending is $294 billion—$24 billion short of the $319.1 billion needed for peak profitability.

U.S. COMPANIES ARE missing more than $2.4 trillion in potential sales due to underinvestment in business travel, according to a Global Business Travel Association report. Despite a post-pandemic rebound, travel and entertainment spending remains $66 billion below 2019 levels.

Keep ReadingShow less
AI threats in hospitality

Study: Cyberattacks on hotels to surge

Summary:

  • Around 66 percent of hotel IT and security executives expect more cyberattacks this summer, and 50 percent anticipate greater severity, according to VikingCloud.
  • Guest-facing systems most at risk include POS and payment technology at 72 percent, guest WiFi at 56 percent and front desk systems at 34 percent.
  • About 48 percent of executives lack confidence in their staff’s ability to detect and respond to AI-driven attacks and deepfakes.

APPROXIMATELY 66 PERCENT of hotel IT and security executives expect an increase in cyberattack frequency and 50 percent anticipate greater severity during the summer travel season, according to cybersecurity firm VikingCloud. In summer 2024, 82 percent of North American hotels experienced a cyberattack and 58 percent were targeted five or more times.

Keep ReadingShow less