• New Report: Recovery Continues for Hotels, But Staffing Challenges Remain

     
    POSTED August 8, 2022
     
    Photo credit: American Hotel & Lodging Association

There’s good news, as well as some cautionary findings, in the 2022 Midyear State of the Hotel Industry Report by the American Hotel & Lodging Association (AHLA).  The report is based on data and forecasts from Oxford Economics, AHLA Platinum Partners STR and Avendra and Silver Partner JLL, and survey research commissioned from Morning Consult.

Overall, the report shows, the hotel industry continues to make strides toward recovery, with an increase in leisure travel leading the rebound. But staffing shortages remain. According to Midyear State of the Hotel Industry, hotels are aggressively working to fill vacancies, offering incentives that include higher wages, greater flexibility with hours, and expanded benefits. In the last three months, survey respondents indicated that they had hired an additional 23 employees. But they were trying to hire staff for an additional 12 posistion, with nearly all respondents (97%) saying they have been unable to fill open positions.

Some of the key findings include:

·       Hotel occupancy is expected to average 63.4% in 2022, approaching pre-pandemic levels

·       Hotel room revenue is projected to reach $188 billion by the end of this year, surpassing 2019 levels on a nominal basis

·       By the end of 2022, hotels are expected to employ 1.97 million people—84% of their pre-pandemic workforce

·       Hotels are projected to generate $43.8 billion in state and local tax revenues in 2022, up 6.6% from 2019

·       47% of business travelers have extended a business trip for leisure purposes in the past year, and 82% say they are interested in doing so in the future

“After a tremendously difficult two and a half years, things are steadily improving for the hotel industry and our employees,” said AHLA president & CEO Chip Rogers. “This progress is testament to the resilience and hard work of hoteliers and hotel associates, who are welcoming back guests in huge numbers this summer. While these findings highlight the important role hotels play when it comes to creating jobs, spurring investment and generating tax revenue in communities across the country, they also underscore the lingering challenges posed by one of the tightest labor markets in decades. That’s why both AHLA and the AHLA Foundation are focused on helping hoteliers fill open positions.”

The AHLA Foundation’s new national ad campaign, The Hotel Industry: A Place to Stay, “aims to help bridge the employment gap while introducing job seekers to the 200+ career pathways and many perks the hotel industry offers.”

 

 

More and more awareness is being brought to the issue of emotional wellness in the workplace. Hardly immune from the challenges of stress and burnout, the hospitality industries have some of the highest rates of work-related mental health issues.

 

Staffing issues remain a key concern in the hotel industry. In a new member survey conducted by the American Hotel & Lodging Association (AHLA), 87% of respondents reported that they are experiencing a staffing shortage, 36% severely so.

As bad as these numbers are, they’re actually an improvement.  Back in May when the same questions were posed, 97% of AHLA members said they were short staffed, 49% severely so.  Then as now, the most critical staffing need is housekeeping, 43% ranking it as their biggest challenge in the recent September survey, 58% in May.  

 

Conference center concludes largest humanitarian mission to date.

The National Conference Center, a 265,000-square-foot meeting and conference facility in Loudoun County, Virginia, near Dulles International Airport, completed its contract with the U.S. government supporting the second phase of the Operation Allies Welcome (OAW) mission. In March 2022, The National Conference Center (NCC) began performing a contract with the U.S. Department of Defense providing lodging and food to Afghan allies looking to resettle and start new lives in the United States.