Hotels holding steady at lower staffing levels
 
Hotels holding steady at lower staffing levels
16 OCTOBER 2020 1:04 PM

In line with lower occupancies that are anticipated to be the norm for now, hoteliers are not expected to make significant staffing changes for the next six weeks.

REPORT FROM THE U.S.—The hotel industry workforce remains stable after losing nearly 200,000 positions from its late-August peak, labor-management data from Hotel Effectiveness shows.

With occupancy forecasts holding steady, industry experts do not expect significant changes to staffing levels over the next six weeks.

“This remains a tricky time for hotel owners and managers,” said Taylor Beauchamp, chief product officer for Hotel Effectiveness. “Most hotels are operating above break-even occupancy, but additional progress in job recovery will require a less volatile market with a return of the slow-but-steady revenue growth we saw through this past summer.”

A slight uptick in food-and-beverage staffing over the past two weeks was offset by a reduction in sales staff, as more hotels cut positions dedicated to the still-dormant meetings market.

Even as trading conditions remain challenging, new laws and regulations continue to add operational and management burdens to hotels.

On 17 September, California lawmakers passed a law requiring all employers to report COVID-19 positive cases to all workers, direct and contract, within 24 hours of discovery. Very few hotels have reliable and secure methods of instant, trackable communication to associates, so many operators are facing significant legal risks when this new law goes into effect on 1 January 2021.

“General managers are stretched to the limit already, and this new legal requirement adds to the risks they are already managing,” said Marsha Bonner, hospitality risk management expert and advisor to several major management companies. “The civil penalties (fines) they will have to pay if they cannot comply with this new law could push more hotels into financial default.”

The data and charts above represent a sample of more than 4,000 same-store hotels and excludes hotels that have been closed during the analyzed period.

Del Ross is Chief Revenue Officer for Hotel Effectiveness.

The assertions expressed in this article do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please feel free to comment or contact an editor with any questions or concerns.

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