Pullback in hotel employment after holiday gains
 
Pullback in hotel employment after holiday gains
24 JULY 2020 8:18 AM

Following a surge in demand over the Fourth of July holiday week, occupancy and staffing have stabilized at a lower percentage of pre-pandemic levels.

REPORT FROM THE U.S.—As U.S. hotel occupancy has stabilized over the past two weeks, most hotels have slightly reduced staffing levels, labor management data from Hotel Effectiveness shows.

Overall, the Hotel Employment Index stands at 50% of pre-COVID-19 staffing levels, suggesting that more than 4 million industry workers remain out of work. As the peak leisure season enters its last month, managers are skeptical about whether much will change over the next eight to 12 weeks.

Meanwhile, owners continue to think through how to manage significant increases in operating costs. Recent analysis suggests that new cleaning requirements including procedure changes, equipment and supplies will drive up costs by as much as 20%. Combined with reduced ADR and unpredictable demand, the current environment requires new ways of thinking about workforce management and organizational efficiency.

Many large management companies including Davidson Hotels, McNeill, and McKibbon are relying on labor management technology investments to minimize losses on slow days and optimize income on “profit days.”

The data and chart above represent a sample of more than 3,300 same-store hotels and excludes hotels which 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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