There’s no question that COVID-19 has drastically challenged the hospitality industry, leading to such monumental changes to the guest experience as contactless procedures, capacity restrictions, entry requirements and more.
New data from Forbes Travel Guide (FTG) takes a deeper look at the industry’s slowed recovery, which is driven in large part by staffing issues coupled with challenges posed by the pandemic (according to the report, 92% of respondents reported facing significantly increased hiring challenges in 2021 alone).
And it’s a problem that started even before the rise of COVID-19.
Here, Filip Boyen, CEO of FTG, shares more about the labor crisis — and what travel advisors need to know about the problem moving forward.
After looking at the data from the FTG survey, was there anything in this report that surprised you?
No region has been spared from this issue — everyone is facing the same challenges, even down to the types of positions that are hard to fill. As we read through the hundreds of comments we received in the survey, we were struck to see a clear consensus emerge that fundamental labor issues were simmering in hospitality — well before the pandemic caused them to boil over.
We were struck to see a clear consensus emerge that fundamental labor issues were simmering in hospitality — well before the pandemic caused them to boil over.
What do you believe are the reasons behind this shift in hiring and the resulting labor shortage?
COVID-19’s effect on our workforce has been devastating. Due to furloughs and layoffs, hospitality workers felt let down; they believed that their employers broke their promise to them. On top of that, workers had time to reflect during COVID-19 shutdowns, and many changed their career direction for better pay, more flexibility and more regulated work schedules. Many also returned to their home countries to be close to their families during these challenging times, leaving a vacuum in the available labor pool for many hospitality jobs.
What domino effect has this labor shortage had on other segments of the travel industry?
Staff shortages have led to delays at airports and flight cancellations, and smaller teams at travel agencies, which causes a disconnect with the sales teams at hotels and suppliers. Energy prices have skyrocketed, and inflation is on the rise. Supply chains were interrupted, spurring cost increases and shortages.
The labor shortages have affected hotels in a multitude of ways. One hotel operator at a major resort hotel told us they were worried they might run out of sheets because the laundry service didn’t have enough employees to process them quickly. And we’ve heard many food and beverage managers lament shortages — casinos not having the high roller’s favorite brand, that kind of thing. It has never been harder to manage luxury hotels.
One hotel operator at a major resort hotel told us they were worried they might run out of sheets because the laundry service didn’t have enough employees to process them quickly.
Hotels that find alternate ways to offer service without compromising quality will ensure their long-term success. For example, menu production and upkeep are expensive and require people — moving your menus to a QR code system is an initial outlay but saves production and maintenance costs going forward.
What effect do you think this labor shortage will have on the hospitality industry over the next 3-5 years? How about long-term?
The gap between available hospitality jobs and available workers is not closing anytime soon. For now, we will have to get used to a smaller, but more versatile workforce.
We see that many luxury hotels are hiring people with no previous hospitality experience out of necessity. It creates a challenge to get those new staff up to speed — especially at the luxury level. Cross-training and service excellence training will be crucial.
In general, average daily rates are considerably higher than in 2019, so guests’ expectations are high, and they demand the best. Service standards will need to be maintained. We must improve the perception and reputation of our industry and give young, talented people the motivation and incentives to join hospitality and to build their careers.
Filip Boyen, CEO of Forbes Travel Guide
Credit: 2022 Forbes Travel GuideHow can hotels best combat the challenges, especially when it comes to recruiting for entry-level positions and maintaining high standards of customer service?
The onboarding process is key; many new recruits decide in the first week if this employer or job is for them. Fair compensation is essential, and you have to show employees that you care by training and developing them. It’s important to offer a clear path of development and advancement. Everyone is more invested in what they do when they have a sense of purpose.
How do you think this staffing shortage will affect a guest’s travel experience? What tangible effects are they likely to notice?
Hoteliers are incredibly resourceful and creative. They find ways to keep delivering extraordinary service. Management is much more hands-on, and we have seen many hotel executives waiting tables and cleaning rooms. Many hotels are operating with reduced room inventories and fewer restaurant tables to ensure service standards are maintained. Most owners understand the importance of quality service and take the long-term loyalty view rather than the short-term gain.
Management is much more hands-on, and we have seen many hotel executives waiting tables and cleaning rooms.
Investing in technology is one way to help with staffing shortages. It helps with the long-term outlook rather than a quick fix. But hotels can streamline front-desk and back-of-house workflow by using ticketing solutions like Intelity’s Guest Experience Management System. This will allow lean teams to spend more time on non-automatable tasks.
One outside-the-box solution is to collaborate. Kimpton’s La Peer Hotel in West Hollywood, Calif., invited local businesses to do pop-ups on the property. The benefits were reciprocal: The pop-ups helped the community, while the hotel was able to give guests unique offerings that didn’t require additional staff. For example, celebrity gym Dogpound conducted outdoor fitness classes at La Peer, and when indoor dining was banned in West Hollywood, neighborhood restaurant Olivetta did a pop-up on the hotel’s rooftop.
What advice do you have for travel agents on how they can manage/set expectations for clients traveling to hotels in this pandemic-era landscape?
Travel advisors have earned the trust of their clients through years of creating amazing travel experiences, and that will pay dividends. Travelers need trusted travel advice more than ever. Safety will remain at the forefront, and maintaining health security both for guests and employees is a must.
Communication and up-to-date information about the hotels and the destination are hugely important. The travel advisor needs to be fully informed to maintain the trust and confidence of their clients. I have always been amazed by the product knowledge U.S. travel advisors pride themselves on. They intimately know their hotels and suppliers and will recommend only those who have a passion for extraordinary service.
The industry needs to come together to promote what’s great about working in hospitality — and improving what isn’t so that we can appeal to the younger generations. We already see increased pay and efforts to make the work culture more attractive and rewarding, because employees want more than a paycheck.
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