This website uses cookies to improve your experience while you navigate through the website. You may know the overall average (47.2%), but the context of your industry likely completely changes the way you should consider your annual numbers. Hospitality Industry statistics to have on your radar in 2022 12:20 PM PST March 3, 2023. Before we get to our early data, there are several characteristics of leisure and hospitality work that help explain why the industry has unusually high turnover rates. 1 JVS continued to be conducted via a biannual survey of employers during the second and fourth quarters until 2022 when it became an annual survey. Total separations levels and rates by industry and region, seasonally adjusted Table 4. There has been significant growth in the percentage of British and Non-EU staff. In this article, EHL Insights have compiled a few hospitality statistics and data you need to know in 2022. Through his work, he aims to help companies develop a more tech-forward approach to their operations and overcome their SaaS-related challenges. This is roughly the same percentage as in an average year. Employee Turnover Rates by Industry: Updated for 2022 - Level 6 Incentives You also have the option to opt-out of these cookies. (GlobalData, 2020), Nothing is as important as an entertained and happy family when traveling. Because of this, brands must strive to keep these elements in mind if they wish to stay relevant in this changing industry climate. There is no doubt the hospitality industry has enjoyed unprecedented growth over the years. It's not uncommon for employers to request the military records of potential employees. Hospitality (2019). Unfortunately, for many jobs in the hospitality industry, remote work isnt possible. (, There are approximately 9 million guest rooms in the US, from budget motels to 5-star hotels. It is mandatory to procure user consent prior to running these cookies on your website. PDF Challenges and Strategies for Employee Retention in the Hospitality (Expedia Group, 2019), In light of the pandemic, 50% of travelers say mask enforcement is their leading factor in deciding where to stay. (, 528,070 domestically operated flights in the US in January 2022, an increase from the 375,229 flights operated in January 2021. Meanwhile, Mississippi suffered the least with a -2, 6% year-on-year growth rate. Feuer, W. (2020, March 13). The most common responses related to health and safety concerns, burnout and issues involving managers or co-workers. The pandemic reduced the desire to travel to foreign lands and raised the interest in domestic travel and tourism, among other changes. At the moment, although some changes are irreversible, things are looking up, as the following statistics indicate. vOut = vOut.toLowerCase(); In this study, we assume that the perceived hospitality work environment as well as WFC . Luckily, new technologies are here to help you scale above the heights of these challenges. Employees will appreciate the compromise, and theyll pay you back for it in loyalty. Leisure and hospitality workers are quitting at the highest rates of any industry. Stay on topic. (PwC, 2019), The US needs $4.5 trillion to improve travel infrastructure by 2025 to prevent it from impacting GDP and job growth. In order for us to fully understand the issue of employee turnover in the hospitality industry, we must understand the state of the industry as a whole. It goes without saying that as travel died down during the pandemic, so did jobs in the hospitality industry. You can extrapolate that statistic and apply it to just about any aspect of the hospitality industry, from airline travel to fine dining to vehicle rentals. The rise of new technology has been a breath of fresh air into the hospitality industry. Other things that influence decisions include deals (53%), informative content (50%), helpful reviews (44%), and simple language (35%). JOLTS Home : U.S. Bureau of Labor Statistics (U.S. Travel Association), In 2019, expenditure by international visitors in the US reached $155 billion. Notices Upcoming changes to JOLTS State data and releases Read More Charts Number of unemployed persons per job opening, seasonally adjusted 0 Hover over chart to view data. (2019). (Expedia Group, 2019), In 2018, a record 1.4 billion people traveled abroad for their holidays. The working hours are also challenging, often involving nights, weekends and holidays, which means hospitality workers routinely miss out on time with friends and family, limiting opportunities to recharge their emotional batteries. Monthly Business Turnover Indicator - Australian Bureau of Statistics It grew from an all-time low of just $17 billion in April to a pandemic high of $62 billion in August 2020. Leaders of the different sectors of the hospitality industry often talk about the power of disruptive forces. A 42-year-old woman who spent nearly a decade in the food service industry said she would return for "better pay and more respect," a sentiment echoed by others. But now that things have somewhat leveled off, how is the hospitality industry doing? A big part of this decline seems to be explained by the "great resignation." (U.S. Travel Association), From March to December 2020, the pandemic has resulted in $492 billion in cumulative losses for the U.S. travel economy, which equates to a daily loss of approximately $1.6 billion. According to Gallup, 61% of employees look for greater work-life balance which includes WFH arrangements when job hunting in 2022. Hiring internally makes sense, so let your employees know that! (2020, July 17). Those numbers are encouraging not just for hospitality industry workers but managers and executives. Its clear that booking is one area that is evolving rapidly. Industry. Understanding the air travel shopping journey of todays connected consumer in the US. Harri Weber. How are they now that travel restrictions are being removed? (, 66% of millennials book their trips using a smartphone while 74% use their mobile for travel-related research. Apart from the changing consumer preferences and expectations,vacant positions are harder to fill compared to before the pandemic. This is especially important for hospitality because it was one of, Booking.com is the most valuable travel and tourism brand in the world, with a brand value of $8.9B. About 3.5 million people have at least temporarily left the U.S. workforce since March 2020. $(document).ready(function() { Hotels are the most stable with a 5% leaver rate. (Source: Office of Occupational Statistics and Employment Projections) Earnings and Hours (Deloitte, 2019), Immigrants account for 13% of the total US population. The average involuntary turnover percentage in Canada during the latest survey period was 5.6%. Its easier for employees in the hospitality industry to find other work rather than invest in one company and help it change. Necessary cookies are absolutely essential for the website to function properly. Without the numbers, its becoming increasingly difficult for industry players to fine-tune social and digital strategies. (2022), "A review of antecedents of employee turnover in the hospitality industry on individual, team and organizational levels", . (, Hilton is the most valuable hotel brand in the world, with abrand valueof $7.6B in 2021, although the Wyndam group has the most properties. Send out frequent pulse surveys to gauge employee morale and encourage feedback. In hospitality, employees must regulate the outward expression of their emotions to the benefit of the customer and their employer, regardless of what they are feeling. For general feedback, use the public comments section below (please adhere to guidelines). EU Office: Grojecka 70/13 Warsaw, 02-359 Poland, US Office: 120 St James Ave Floor 6, Boston, MA 02116. (SelectUSA), In 2018, the travel and tourism industry accounts for 10.2% of the global GDP. David is also a senior operating advisor for Norwest Venture Partners. For instance, technological innovation and digital transformation have caused quite a buzz for businesses. The hospitality industry is thriving in some aspects but struggling in others, especially employee retention. The general statistics below will give you an idea of the current state of the hospitality industry and generally show you its projected future. 58.3% of meetings and events will return in 2022, and 86.9% will return by 2023. With more revenue coming in, those goods and services can be improved, attracting even more business. That's less than half of the average for all private workers and translates into annual income of under $27,000based on 52 weeks of pay. Ahlas state of the hotel industry 2021. Be nice. function sanitize_gpt_value2(gptValue) While some businesses opt to only pay minimum wage plus tips to off-set the damage of low seasons, employees feel undervalued. (Condor Ferries, 2020), The average room rate in the US is $120.01 per night. You can raise prices and pay employees a better wage whenever there is more demand for a good or service. (, The global air transport industry generated total revenue of $838 billion in 2019. The information you enter will appear in your e-mail message and is not retained by Phys.org in any form. When employees have autonomy over their schedule, they feel valued and are less likely to burnout. But reducing your turnover rates doesnt have to be an uphill battle with the right screening. Labour migration in the hospitality sector. In what follows, we'll dive into the state of the hospitality industry in 2022, the leading drivers of employee turnover in hospitality industry jobs, and what managers can do to retain good employees. Industry losses to top $84 billion in 2020. Similar to the different growth rates in different areas in the same hospitality industry, not all players in the industry saw the same changes or are seeing the same growth rate. In fact, each sector of the travel industry is exploring its own path to digitization as well as ways to recover from the outbreak. However, the professionals in the industry must also remain alert about other disruptions aside from the pandemic. (, The global rail tourism market is expected to grow from $227.21 billion in 2021 to $251 billion in 2022. (PwC, 2019), Once checked in, 90% of millennials connect to the hotel WiFi. Some employees use hospitality industry jobs as landing pads to hop from one temporary job to another. (Deloitte, 2018), On the other hand, according to another Deloitte US Travel and Hospitality Outlook report, US hotel gross bookings revenue in 2017 was $185 billion. PDF Job Openings and Labor Turnover - April 2023 - U.S. Bureau of Labor Hospitality going digital. Employees cannot survive off the minimum hours provided to them during low seasons, and so look for work elsewhere. (PwC, 2019), Interestingly, hotels that are using virtual tours are getting up to a 135% increase in online revenue. Average Employee Turnover Rate in the UK - UK Money With his experience in software development and extensive knowledge of SaaS management, he writes mostly about emerging B2B technologies and their impact on the current business landscape. The following statistics show that as the pool of travelers grows, so do the number of attractive destinations. 44% of millennials stated they preferred staying in Airbnb-style rentals while traveling for work. However, he also provides in-depth reviews on a wide range of software solutions to help businesses find suitable options for them. Speaking of work-life balance, the hospitality industry traditionally doesnt offer a whole pile of flexibility. As a result, its certainly impossible to collect all the hospitality statistics they need to stay abreast of the latest trends. Also, the hospitality industry exports accounted for up to 11% of total US exports in 2017. (, Hotels will struggle with staffing shortages until 2025 when the industry is expected to make a true adjusted recovery. Travel, tourism & hospitality industry spotlight. If you want help building a better team, get in touch with ScoutLogic. No spam. Different feature packages to suit your needs and budget. Consider supporting ScienceX's mission by getting a premium account. This number is based on an employee earning 25,000 per year. The travel industry turned upside down. It continued to improve slightly in September with a year-on-year growth rate of -38%. State of the Hospitality Industry in 2022. . A high staff turnover in the hospitality industry: causes - Cashdesk 2. Read the original article. Fortunately, despite a slow rebound, whats important is the numbers are beginning to rise again as travel restrictions gradually ease up. Staff are in a position to demand higher wages from operators, which places even more emphasis on recruiting intelligently and the importance of retaining talent, saysSebastien Sepierre, managing director EMEA, Fourth. However, the year ended with $57 billion (-39% y/y growth rate) in December. The hospitality industry can be unpredictable and volatile. (PwC, 2019), On the other hand, 97% of millennials post their holiday pictures on social media. (, 74% of millennial travelers have stayed in a rental property while on a business trip compared to 38% of Generation X travelers and 20% of baby boomers. (U.S. Travel Association), Luxury hotels performed the worst during the pandemic, with only 21% occupancy in December 2020 compared to 68% in December 2019. Minnesota's JVS provided job vacancy estimates for the first time in the second quarter of 2001. The average cost of turnover per employee in the UK is 30,614. Besides, they accounted for nearly 23% of all logistics-related searches. Hilton remains the worlds most valuable hospitality brand, with its value up by an impressive 35% despite the COVID-19 pandemic. The research is ongoing, but our early qualitative results offer some clues to answering these questions. However, the industry is still having to replace the 6% of the labour force who leave every month. Canadian organizations saw the highest overall turnover rates in Logistics (24.0%), Consumer Goods (21.7%), and Retail and Wholesale (22.0%). Fourth Sometimes employees will arrive at 10 and depart at 6. But employee turnover is entirely within the hands of management to address. (US Travel Association, 2020), Around 82% of millennials traveled in 2019. (, Passenger demand suffered as international borders closed and countries locked down due to the COVID-19 pandemic. Delgado, J. (Expedia Group, 2019), Fun and entertainment activities in the family travel itinerary include theme parks and attractions (74%), water activities (67%), outdoor activities (55%), and historical landmarks. Apart from any fair dealing for the purpose of private study or research, no or, by Andrew Moreo, Imran Rahman, Lisa Cain, Trishna G. Mistry, The Conversation. (The Guardian, 2019), 71% of global travelers expect travel service providers to deliver sustainable travel choices. Todays tourists define a brand based on the quality of service they offer and how well they can keep their guests safe from the threat of contracting the disease. Millennial influencers will be indispensable in travel sector recovery. In January 2022, job losses were 10%. The 35-year-old single mother, for example, said there was nothing that could be done to bring her back now that she had moved on with her own business. David is a member of the boards of ScoutLogic, YipitData, and Supplier.io and was formerly on the boards of Infutor and Avetta. An 18-year-old woman said she quit a food service job because of a manager with a "really bad temper" who would "cuss at customers and employees." That lack of an option to work remotely has hit the hospitality industry hard. By Peter Romeo on May 03, 2022 Photograph: Shutterstock About 3 of every 50 people employed in the restaurant and lodging industries quit during March, even as overall hirings increased and unfilled positions dropped to the lowest level in at least four months, according to new federal statistics. We also use third-party cookies that help us analyze and understand how you use this website. According to the American Hotel and Lodging Associations 2022 report, hotel occupancy was at a historic low in 2020. Leisure and hospitality gained 7,200 jobs over the year in the metropolitan area. Employee turnover costs statistics include expenses related to hiring, from advertising the job to interviewing, onboarding, and training processes. (International Trade Administration, 2019), However, the projection changed to only 67.4 million international visitors by 2023 considering the pandemic. The hospitality industry is, and always has been a huge portion of the U.S employment market. (McKinsey, 2020), Moreover, 47% of travelers with Gen Alphas, use their cars for family travel. Almost two-thirds (63%) of accommodation and foodservice sector businesses reported lower-than-expected turnover in the two weeks to 23 January 2022, according to the latest Office for National Statistics (ONS) data. (, The global health and wellness market has reached a market evaluation of $1.5 trillion and growing at a rate of 5-10% per year. Roper, W. (2020, May 4). Results of that survey will be available in a couple months. Contact JOLTS The Job Openings and Labor Turnover Survey (JOLTS) program produces data on job openings, hires, and separations. We completed a qualitative unpublished pilot study in December 2021 to help inform a larger quantitative survey we're working on right now. Create employer-branded engagement platforms to facilitate two-way conversations between employees and leadership. (, By the start of 2023, employment in hotels is expected to reach 93% of pre-pandemic levels. Generally, there is a low barrier to entry for new recruits making it a great option for first time workers. Like any other sector, the hospitality industry is driven by consumer needs and demands. Booking plays an important role in helping guests connect with hoteliers and other service providers in the industry. (US Travel Association, 2020), Meanwhile, international visitor expenditures are projected to reach 95 billion by 2022 and 118 billion by 2023. This makes it difficult for employees to plan their personal lives around work. That all adds up very quickly as more employees leave. The travel industry may not be ready to accommodate the surge of travelers booking their trips. The hospitality industry and all its sectors have irreversibly changed. Besides aiding personalization and customization, new technologies are providing unique ways to free up employees in the industry. As we mentioned above, the pandemic impacted the hospitality industry in a way that could not have been anticipated. It was up by just 1.9% in June. You probably saw this in your own experience. You have to be there at the airport, the hotel, or the restaurant to serve the clientele. document.getElementById("comment").setAttribute( "id", "a69852a22244720e6e60199d5c5126e4" );document.getElementById("g870abf955").setAttribute( "id", "comment" ); FinancesOnline is available for free for all business professionals interested in an efficient way to find top-notch SaaS solutions. Unlike an office job where employees can start/finish late or work through lunch to make appointments etc. For comparison, the average salary at present in the US is $54,132, according to research. Copyright 2023 FinancesOnline. (Condor Ferries, 2020), The American Hotel and Lodging Association (AHLA) estimates that the COVID-19 pandemic has taken the industry back more than 10 years worth of job growth. Without booking, the hospitality industry is an incomplete jigsaw. if (i!=(aTags.length-1)) (U.S. Travel Association), As the hotel sector was heavily impacted by the COVID-19 pandemic, hotel brands could lose up to 20% of their cumulative value, equating to $14 billion. (Statista, 2020), As of January 2021, the shares of prominent cruise companies Royal Caribbean and Norwegian Cruises have dropped by 60%. British representation has gone from 45.8% to 55.8% in that period. Commoditization backlash has set the airline revolution on high gear and every brand is fighting hard to reel in the benefits. Average Turnover Rates by Industry 2021-22 - HelloTeam However, they are something to keep in mind. With businesses finally able to enjoy a prolonged period of uninterrupted trading, we are seeing consumers return to venues in strong numbers. (2019). - Last updated on Communication is vital in the hospitality industry, and it all goes back to mutual respect. Click here to sign in with The following statistics unearth key booking trends and the changing customer preferences when it comes to booking. Well, remember, 47.4 million people quit in 2021, and over 50 million people quit in 2022! This way, it will be easy to implement better customer targeting, yield innovative products, and improve pricing to gain significant growth in both profits and revenue once the market is back to normal. That makes employee turnover rates high in ways other industries dont experience. Even worse: hoteliers and destination marketers are swamped by day-to-day tasks. (Expedia Group, 2019), Most importantly, appealing imagery influences 54% of travel decisions. Fortunately, in this article, weve compiled all the hospitality statistics and data you need. Mid-Atlantic Information Office - U.S. Bureau of Labor Statistics Airline workers like flight attendants and pilots must work for up to 20 hours if working for a continuous international flight. The airline travel sector and restaurant work are two prime examples of industries with long, draining shifts. However, immigrants account for 31% of the total workforce in hotels and lodgings in the US. Because the hospitality industry is largely seasonal, companies are used to layoffs and mass hires. (U.S. Travel Association), In total, 18 US states and territories experienced more than a 40% downturn in travel spending in 2020. Related tags As a result, it is essential to collect all the relevant hospitality industry statistics to fine-tune your digital and social strategies to match the rapid changes currently impacting the sector. By using it you accept our use of cookies policy. Provided by (SelectUSA), How do different factors influence accommodation decisions? Here you can learn more about the Celayix story, and why you should choose to work with us or for us! And we know, its not easy to just fork out all of that money. You wont get any good recommendations for ways your company can improve, locking you into a cycle of high employee turnover that will turn off your customer base. Hospitality Headcount Hits Two Year High - but Leaver Rate - Fourth