Hotel industry struggles amid epic hiring spree

Despite a hiring spree, the hotel industry is grappling with a severe worker shortage, even after gaining jobs during the past two years, according to a report by the Wall Street Journal.

Factors contributing to the shortage include hesitant workers and immigration restrictions.

As a result, services like daily housekeeping and room service remain scarce across many hotel properties in the US.

In a bid to make staff stay, hotels are raising wages, with an estimated $123 billion—a staggering 20% increase from 2019—to be spent on compensation this year, according to the American Hotel & Lodging Association.

To compensate for the wage increase, hotels are maintaining room rates near all-time highs, leading to higher travel costs for guests.

Concerns also loom over declines in service quality and customer satisfaction due to smaller staff sizes.

In response, hotels are assigning additional responsibilities to employees. 

Despite these challenges, some regions like Florida are showing signs of improvement in staffing, offering a glimmer of hope for the industry’s recovery.