Concerning growth and employment pressures are happening in the hospitality industry.
One of the hottest trends at the moment when it comes to the economy and job growth is hospitality. The growth in this sector is about 5 percent, just short of double that of other industries.
Red Roof Inn's President Andrew Alexander states that of the 460 properties in the U.S., the issue is less on wage pressure and more on job openings. They simply are not filling their vacancies fast enough. Many of the housekeepers who have been working for them for quite a while are quitting, and those empty housekeeping openings are not enticing young people to swoop in for those positions. In response to the lack of applicants, they have upped their wages, benefits, and training in order to entice younger people into the housekeeping field.
As you see the rate of increase in RevPAR level off, one will start to see that wage growth pressure has a huge impact on hotel profitability. In order to have a properly working hotel, one needs to make sure the “lower†level employees actually have livable wages and benefits that entice them and make the field a competitive one.
To ensure your business taps into the correct market to increase profitability you must ensure that all of the cogs fit and spin together: like a finely tuned watch. If you are located in or around California, Arizona, or elsewhere in the Western US,
contact Parkwest General Contractors today. We will be glad to discuss the best way to complete your upcoming construction project with minimal impact on your customers or your bottom line.
