Hospitality industry labor shortage ‘as bad as we feared’
Hotel News Now offers a weekly roundup of news from a different region of the world. This week’s compilation covers Europe.
Sébastien Bazin said the global labor shortage in the industry is “as bad as we feared. It only gets better if you agree to pay very high wages, which you can’t afford. We really need to think collectively, all the players in the sector, trying to question themselves. »
Accor’s Chairman and CEO made his comments during a exclusive video interview with Hotel News Nowby Terence Baker, in which he added that he was full of energy for the future, as Accor had shifted 90% of its customer demand for its Rixos brand from Russia and former Soviet countries to markets such as the Kingdom United States and Benelux countries and signing of an Orient Express hotel in Venice.
Although European hotel performance lags that of the United States by a quarter or more, what happens to hotel metrics on the continent over the coming months will likely be a bellwether for the global industry throughout the year 2022, said STR Chief Executive Robin Rossmann, during an STR webinar on May 13.
The numbers by press time will likely have improved since the date of the webinar, with Rossmann saying: “Europe will be the poster child for recovery over the next few months. The most gratifying thing is not the recovery in weekend demand, which we have all seen, but the recovery in weekday demand, which is around 10% of pre-pandemic levels. »
“There’s absolutely no reason why in the coming month it won’t go back to what we see in the United States, where it’s 90% and 95%,” he said, adding that Germany would likely be the last major market in Europe to rebound as restrictions on this market were among the very last to be lifted in Europe.
The UK celebrated Her Majesty Queen Elizabeth II’s Platinum Jubilee, the 70th anniversary of her coronation, with four days of celebrations, pageants, concerts, parades and tea parties, all of which were a hit thumbs up for hoteliers through what has been a long June 2. 5 weekends of generally good weather, reports HNN’s Baker.
Mandarin Oriental Hyde Park general manager Torsten van Dullemen said his hotel lit up its facade in royal purple and served locals and guests free Jubilee ice creams and coronation treats, while Sam Goss, general manager of the Castle Hotel in Windsor, the town in which the Queen spends much of her time, said he had so far sold more than 3,000 Jubilee teas and expected the high level of interest continues throughout the summer.
According to Kate Nicholls, Chief Executive of UKHospitality, the UK’s leading industry member body, the challenge of securing staff in the hospitality industry is nothing less than a “battle for the bodieswith his estimate of how much the industry is losing due to a lack of employees totaling around £20 billion ($25.2 billion).
Nicholls, who said she was optimistic about the predicament, said she believed government circles were aware of the problem. Speaking at a press launch of UKHospitality’s new hospitality workforce strategy, she said: ‘Remember the summer of 2019, and everyone was struggling to recruit, and we were faced with a people crisis. Vacancy levels are now double what they were then.
Most American travelers who booked tours to Europe in 2022 still intend to visit and are undeterred by the ongoing Russian invasion of Ukraine, according to a recent study by MMGY Travel Intelligence, the results of which showed that 61% of respondents are do not change their plans and 23% said they intended to wait and watch developments in the war before committing to any plans.
“While the war in Ukraine is clearly a top concern for many travelers, it doesn’t look like it will ultimately deter most Americans from visiting Europe. This is especially true for travel to Western European destinations. who are perceived to be a little further away geographically from the conflict,” said MMGY Executive Vice President Chris Davidson.
- Hilton is set to debut in 2024 in San Sebastián, Spain, with Palacio Bellas Artes Hotel San Sebastian, Curio Collection by Hilton, a franchise agreement with Sociedad Anónima Deportes y Espectáculos, SA, a wholly owned subsidiary of Grupo SADE , who will manage the 82-room hotel;
- UK commercial property [Real Estate Investment Trust] acquired a development from Marrico LLP and Helio in Leeds, England, which will open in 2024 and be the site of two Hyatt Hotels Corporation assets under a 25-year lease operated by Interstate Hotels & Resorts. The two brands will be Hyatt Place and Hyatt House, with the REIT working with Leeds City Council in a £62.7 million ($78.28 million) commitment;
- Radisson Hotel Group has announced the launch of its Radisson Collection Hotel brand in Croatia with the 227-room Grand Hotel Brioni Pula, which has been transformed into a $37 million renovation of Hotel Brioni by its master franchisee PPHE Hotel Group and EPPHthe Croatian subsidiary of Arena Hospitality Group;
- Yotel is due to open the 127-room Yotel Lisbon World Trade Center in 2024, a partnership with center developer Foz Vintage Group. It will be the hotel company’s second hotel in Portugal, following its 150-room debut in May 2021 in Porto;
- Marriott International opened the 134-room W Algarve on Portugal’s south coast in Sesmarias on June 1, the brand’s debut in the country;
- Scandic Hotels opened the 100-room Scandic Nørreport in Copenhagen, its 29th property in Denmark;
- SH Hotels & Resorts and Starwood Capital Group will open the Treehouse Manchester in early 2023, the second asset of the Treehouse Hotels brand after its debut in London at the end of 2019;
- IHG Hotels & Resorts and owner HNH Hospitality announced the second Voco hotel in Italy with the 128-room Voco Venice Mestre The Quid on the Italian mainland near Venice Marco Polo Airport and across from Venice itself;
- Leonardo Hotels will make its Manchester debut with the 275-room Leonardo Hotel Manchester Piccadilly, which the hotel company says has a design reminiscent of the board game Jenga.
Return to the Hotel News Now home page.