Hotels Paying More, Offering Better Benefits to Offset Staffing Shortages

A new report showed that hotels and resorts are offering potential new hires better pay and incentives to offset staffing shortages across the industry.

According to data from the American Hotel & Lodging Association (AHLA), nearly 80 percent of hotels are experiencing staffing shortages, with 22 percent saying the shortages are severe and 41 percent saying housekeeping is their top hiring need.

To get people back to work, 71 percent of survey respondents said they have increased wages, 64 percent offer greater flexibility, and 33 percent expanded benefits. Respondents are attempting to fill an average of seven positions per property.

The numbers are an improvement from September 2022, when 87 percent of respondents said they were short-staffed, 36 percent severely so, with 43 percent ranking housekeeping as their top hiring need at the time.

“Recruiting enough workers continues to be the top challenge for many hoteliers, and this is leading to historic career opportunities for hotel employees,” AHLA CEO Chip Rogers said.

“We need Congress to help address workforce shortages with bipartisan solutions to incorporate more immigrants into the American economy,” Rogers continued.

As of December, AHLA data showed that national average hotel wages were at all-time highs of more than $23 per hour, with the average wages increasing faster than average wages throughout the general economy since the pandemic.

According to the U.S. Bureau of Labor Statistics, hotel employment is down by more than 250,000 jobs compared to February 2020. Properties are looking to fill many positions lost during the pandemic, including nearly 100,000 hotel jobs currently open nationwide.