At the peak of a great upward climb from the Great Recession, the U.S. lodging industry is seeing a leveling off in business performance.
During the 25th annual Lodging Conference in Phoenix last week, many industry experts talked about a new normal of muted revenue gains and thinner profit margins as expenses continue to grow.
The biggest and fastest-growing operating expense in the hotel industry today is labor.
STR reports U.S. hotels saw labor costs grow an average 3.7 percent from 2016 through 2018. Those three years are the only period in the past 20 years in which labor costs exceeded revenue growth.
Although industry analysts cite much-talked-about causes of increased labor costs such as minimum wage laws and a tight employment market, some of the reasons your hotel is wrestling with the expense are not so obvious.
In this episode of Lodging Leaders – the second in a two-part series about hiring and labor – we explore how you can get a grip on labor costs, become more efficient in scheduling employee hours, and manage employees’ work expectations.
We hear from Del Ross, chief revenue officer at Hotel Effectiveness; Bryan DeCort, executive vice president at Hotel Equities; and Bruce Barishman, vice president of operational excellence at Interstate Hotels & Resorts. We also include excerpts from a presentation by economist Bernard Baumohl at The Lodging Conference.
Resources and Links
Since she was a teenager volunteering at senior-living facilities in Boston, Serena Lipton knew she wanted a career in senior housing. But she had a difficult time finding the college program she believed would educate and prepare her to serve in the senior-living industry. After graduating from Boston University School of Hospitality Administration and working as an analyst for JLL’s Senior Housing Valuation Advisory, Lipton finally found what she was looking for. This fall she enrolled in BU’s Master of Management in Hospitality with a new concentration in senior living. She and other students are on the cusp of what BUSHA believes is a massive shift in how Americans view aging and where opportunities lie for the hospitality industry.
Rainer Jenss of Nyack, New York, founded the Family Travel Association seven years ago to help parents and caregivers introduce children to the world through travel, whether that’s a yearlong trip around the world that Jenss and his family took or a weekend getaway to a nearby destination. To help the travel industry gauge what parents want when they take their kids on vacation, FTA conducts an annual study. The U.S. Family Travel Survey 2021 reveals the shift in mindset the COVID-19 pandemic has created in families planning a trip over the next 12 months. Hoteliers use can use the information to generate business and boost their strategies to recover and sustain business now and other the coming months.