Economic analysts are using the term, “The Great Resignation,” to describe the massive number of workers quitting jobs in retail, warehouse, restaurant and bar, health-care and social-assistance jobs at record levels. The situation is particularly dire for the hospitality industry where, according to data released this week by the Bureau of Labor Statistics, nearly 40 percent of workers who quit in August worked in restaurants and hotels. Anyone who’s worked in a hotel knows that the industry has historically been plagued by low wages and high stress. Coupling that with extended furloughs, and it’s no surprise that so many are walking away with the same conclusion. “Enough is enough.”
This has created a real “chicken vs. egg” dilemma for hospitality. To entice new employees, hotels need to offer more competitive wages and benefits. To offer better compensation, they need more customers. To get more customers, they need staff to serve them. Round and round it goes.
In a recent blog, travel technology service provider, Vindow, revealed that one possible way for hotels to break the cycle may be to take advantage of renewed interest in long-term contracts and discounted corporate rates. Large-scale meetings & events are struggling and most industry analysts agree that even after COVID, hybrid meetings will continue to siphon off in-person attendance. On the other hand, individual business travel is steadily increasing and is expected to return to previous level in less than a year from now. Corporate travel buyers are looking for ways to not only control costs but to protect their travelers from COVID-19 exposure. One way to do that is by limiting hotel choices to trusted suppliers.
Are corporate rates a potential “win/win”?