The perils facing the hotel industry go beyond COVID-19...

The Hospitality Industry is in peril. Yes, COVID-19 shut down the world’s economy almost overnight and confronted the hospitality industry with unprecedented challenges. And yet, even if we sooner or later overcome the pandemic, trouble lies ahead.

As recovery from the COVD-19 pandemic occurs, the demand-side for hotel rooms and dining out is on the increase. Although gradual, the signs are evident and that is surely encouraging. However, it can be a double-edged sword for the hospitality industry.

More demand means increased revenue: stands to reason. The majority of hotels seem to recognise higher demand as a license to raise rates and why not? Higher rates also raise guest expectations and that’s when things can get hot. Working with less staff to cope with demand and heightened guest expectations can become too much for hotels to handle!

The hospitality industry was plagued with staffing barriers long before COVID-19. While it continually recognized and lamented about it, the industry hardly did much to overcome the issues.  Not only did the coronavirus crisis wipe room demand off the face of the earth, it also triggered a rush by companies – big and small to cut and chop staffing levels by enforcing ‘layoffs’. 

As demand gradually returns, pushing room occupancy rates upward, the decision to reduce staff will return with a vengeance to haunt the industry, bringing with it the plague of labour shortages. The mutterings of discontent are back with hotels claiming they have significantly fewer resources available these days – despite many now relying more on technology and automation than they have in the past.

As a result of the mass scale layoffs, there is a huge deficit of trust, where employees are reluctant to re-enter the industry, because they feel that when the next crisis comes along – they will be dumped again with no safety net! Ironically, some people, instead of working in restaurants are more confident by driving delivery for restaurants.

There are several hurdles to be overcome if the hotel industry wishes to attract enough people to join its workforce, it needs to:-

• Have a fresh re-look at its pay scales and benefits. The decade’s long lower-paying image, which is a wide-spread, is a distinct barrier.
• Address a reputation problem - who wants to work for an industry that immediately discontinues employing many people during every downturn?
• Most of the ‘laid off’ possessed highly transferable skills and have since joined other industries. Hoteliers will need to adopt a similar approach and look where the core behavours (friendly/helpful) are available and re-transferable to hotels – for example, employees working in retail which is also reeling from COVID-19.
• Accept that whilst technology helps reduce staff requirements with contactless features like mobile check-in/ check-out, it by no means represents what a hotel stay is supposed to be.

During and in the immediate aftermath of the mayhem caused by the pandemic guests were tolerant of staffing levels — or lack of it. But no sooner they are made to fork out more on rates, their expectations of what constitutes a ‘value for money hotel experience will bounce back to pre-COVID-19 levels.

Sadly, the industry is not sufficiently looking down the road and not proactively investing in finding solutions.

Shafeek Wahab –Editor, Hospitality Sri Lanka, Consultant, Trainer, Ex-Hotelier

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