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With 76% of Hotels Still Struggling With Staff Shortages, Many Are Increasing Pay and Perks

Jun 11, 2024
Hotels and Resorts  Research  Travel News  
With 76% of Hotels Still Struggling With Staff Shortages, Many Are Increasing Pay and Perks
Staffing shortages at hotels are prompting companies to increase wages, expand benefits and offer more flexibility to employees.
Credit: 2024 pressmaster/stock.adobe.com

The hotel industry is grappling with severe staffing shortages, prompting hotels to significantly increase wages, expand benefits and offer more scheduling flexibility to attract and retain employees, according to a recent survey by the American Hotel & Lodging Association (AHLA).

The survey of 456 hoteliers, conducted in May 2024, found that 76% are experiencing staffing shortages, with 13% reporting being severely understaffed to the point of impacting operations. This represents a worsening situation compared to a January 2024 survey, where 67% said they had a staffing shortage.

In response, 86% of hotels have increased wages over the last six months, 52% have offered greater flexibility with hours and 33% have expanded benefits. However, 79% say they still cannot fill open positions.

The most critical staffing need cited was housekeeping, with 50% ranking it as their top hiring priority. On average, hotels are attempting to fill seven job openings per property, down from nine in January.

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"Strong summer travel demand and a nationwide workforce shortage have combined to create more pay, perks and upward mobility for current and prospective hotel employees," said Kevin Carey, interim president and CEO of the AHLA. "But hotels need access to more workers to continue creating jobs."

The staffing challenges come amid a tight national labor market, with 8.1 million job openings in the U.S. as of April, but only 6.5 million unemployed people, according to the Bureau of Labor Statistics. And data from Indeed indicates that there are tens of thousands of open hotel jobs across the country.

Carey stated that the AHLA is lobbying Congress and the Department of Homeland Security for solutions to grow the workforce. Examples include expanding the H-2B temporary nonagricultural worker visa program and passing bills such as the Closing the Workforce Gap Act of 2024 and the Asylum Seeker Work Authorization Act.

Editor’s Note: This article was generated by AI, based on a press release distributed by the American Hotel & Lodging Association. It has been fact-checked and reviewed by a TravelAge West editor.

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