Can technology help hospitality labor shortages?
The hotel industry is being hampered in its recovery by a shortage of labor.
The global pandemic is being blamed for the issue because many employees left the sector as hospitality businesses were forced to shut for months on end in 2020 and, again, in the first few months of 2021.
Other workers may have health concerns about returning to work safely and a portion, especially in the U.S., are still receiving unemployment support from government.
A recent survey from the Hospitality Asset Managers Association reveals availability of staff as the top concern followed by customer demand and labor costs.
The concern was echoed during recent earnings calls with one senior hotel executive describing it as one of the most important issues currently.
Chris Nassetta, president and CEO of Hilton, went on to say that it is “constraining recovery at certain times” because hotels can’t secure enough staff to service properties.
He also said it would lead to pressure on wages at least in the short term but that the situation would “stabilize and work itself out.”
A recent note from credit ratings company Fitch confirmed similar staff shortage issues in the U.K. also highlighting Brexit as a cause, and said it expected the cost of hiring and training to increase in the short term.
