Industry Insights: Hospitality

Industry Insights | May 25, 2023 | 3 minutes read

Welcome to our resource page for Hospitality Hiring!

Federal Reserve officials expect the unemployment rate to reach 4.5% by the end of 2023 with millions of Americans likely to lose their jobs and grapple with higher interest rates. As a result, many employees are reevaluating their jobs and industries while prioritizing work flexibility and financial wellness benefits. We have put together the latest data and research on why employees are leaving the hospitality industry and how, as an employer, you can prioritize your financial wellness benefits to hire and retain talent.

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The Hospitality Facts

The U.S. hotel and motel industry is worth $177.6 billion.
2023 room-night demand is projected to surpass pre-pandemic levels and reach 1.3 billion occupied room nights.
The hotel and resort sector’s market size peaked at $1.52 trillion in 2019, dropped below $1 trillion in 2020 and 2021 due to the COVID-19 pandemic, and is expected to reach $1.21 trillion in 2023.
The average Hotel Worker salary in the United States is $43,616 as of March 28, 2023, but the salary range typically falls between $34,524 and $55,065.
There are 2.4 million people employed in the Hotels & Motels industry in the US as of 2023.
Consequently, to attract new employees, hospitality industry players are forced to increase wages. As a result, average hourly earnings were 18% above 2019 levels in February – greater than the 14% increase for the overall private sector (Bureau of Labor Statistics)

* Sara Zaske, “Layoffs pushed hospitality workers to leave industry”, Washington State University Insider, July 15, 2021 https://news.wsu.edu/press-release/2021/07/15/pandemic-layoffs-pushed-hospitality-workers-leave-industry/

No More Heartbreak for Hotels

Despite being the go-to place for excited travelers, hotels are struggling to reduce turnover rates and keep talented employees on staff.

In 2022, U.S. hotels directly employed nearly 2 million people — more than 400,000 fewer than in 2019.
Hotels are projected to directly employ nearly 2.1 million people in 2023 – a 7.4% increase from 2022 but still more than 260,000 fewer employees than in 2019.
Staffing is expected to remain a significant challenge for U.S. hotels in 2023, with hotels projected to employ 2.09 million people in 2023, down from 2.35 million in 2019.
Many competing industries like retail and manufacturing are looking to the same pool of candidates to build up their staff, with a focus on hourly workers.
94% of workers said they want flexibility with their schedule.

Vertical FACT

The number of people employed in the Hotels & Motels industry in the US increased 5.8% on average over the five years between 2018 and 2023

What Hospitality Workers Are Looking For

As hotels prioritize hiring top talent in 2023, improving financial wellness benefits and employee experience has never been more crucial. Candidates are considering a variety of industries as industries like hospitality are growing post-pandemic. Standing out as an employer comes down to implementing benefits that not only attract but retain team members.

The US economy is expected to add 8.3 million jobs between 2021 and 2031, with leisure and hospitality accounting for 23.1% of all new jobs, the fastest of any sector at 1.3% per year.

https://blog.gitnux.com/hospitality-industry-statistics/

The revenue per employee for the average business in the Hotels & Motels industry in the US has increased from 2018 to 2023.

Over 77% of hospitality workers experience burnout and 40% quit their job because of it.

Right now, hospitality workers are not only burnt out, they’re actively disengaged, under-trained and under-informed. These are industry setbacks that translate to poor customer service and will hinder any progress towards recovery. Hospitality needs to focus on engaging employees, training employees, and empowering them with access to the tools and information they need to perform at their highest level, a key ingredient to workplace happiness.

The Big Picture

The hospitality industry can offer a range of employee benefits to stay competitive—flexible hours and scheduling, increased pay, employee discounts and training, to name a few.

Introduce on-demand pay benefits to help employees reach their financial wellness goals and feel more confident and productive on the job.
Offer a healthy mix of perks, like flexible hours, learning opportunities, and more.
Do more to retain the staff you have including developing inclusive environments and giving workers greater flexibility over their shift schedules.
Offer employment opportunities to younger people who don’t have prior experience. Look beyond their lack of experience and invest in skills and development training that will help them in their role and beyond.
Plan to offer perks such as bonus pay for working difficult shifts, sign-on/retention bonuses, a rewards and recognition program, tuition assistance and complimentary meals, transportation, and housing on-property.

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Industry Insights: Hospitality

Welcome to our resource page for Hospitality Hiring!

Increase Recruitment & Reduce Turnover as a Hospitality Business with 3 Strategies

The Hospitality Facts

No More Heartbreak for Hotels

What Hospitality Workers Are Looking For

Over 77% of hospitality workers experience burnout and 40% quit their job because of it.

The Big Picture

Get Payactiv for your business

Support your staff with Payactiv

Get Payactiv for your business