Staff shortages impact hotel reputation: statistics reveal critical points

Hotels, resorts, and other accommodation facilities increasingly face the challenge of attracting and retaining qualified staff. Due to the shortage of suitable employees, both operational efficiency and service quality suffer, resulting in lower guest satisfaction and a weakened reputation in the competitive market.

How staff shortages affect daily hotel operations

Service quality issues

In the hospitality industry, service quality is the foundation of successful business operations, as guests expect prompt, friendly, and professional treatment. When qualified staff is lacking, this affects:

• Easy check-in and check-out processes
• Cleanliness of rooms and common areas
• Availability of additional services
• Access to information

Due to staff shortages, existing personnel become overworked, and many employees must perform multiple tasks simultaneously. This reduces their efficiency and makes it difficult to establish genuine personal connections with guests.

Overworked staff not only impacts the quality of the guest experience but also the financial performance of the accommodation provider.

Poor guest experiences result in decreased trust from potential guests and reduced loyalty from existing ones. All of this leads to a significant drop in revenue and diminished potential earnings in the long term. Consequently, hotels receive lower ratings and experience reduced loyalty, which brings even greater revenue decline over time.

One measure that hoteliers resort to in certain cases is deciding to reduce the hotel's opening period within the season, as it's impossible to operate at a high quality level throughout the entire season with insufficient or unsuitable staff.

Longer wait times and slower services

One of the main effects of staff shortages that guests notice is longer waiting times during check-in and check-out at reception. Hotel check-in or check-out can be a time-consuming process, as too few employees cannot devote enough time to each guest simultaneously.

Similarly, when reception staff is overwhelmed, guests often wait too long for room service or additional services. In the eyes of guests, waiting always negatively impacts their overall experience.

According to research by Cornell's Center for Hospitality Research, delays in the hotel check-in process significantly reduce guest satisfaction. Guests become restless, lose patience, and grow impatient.

The study analyzed guest data from eight countries and identified specific "threshold points" – waiting time thresholds after which guest satisfaction decreases significantly.

For example, satisfaction among guests from the United States decreased by 47% if the waiting time exceeded 5 minutes.

Slow service not only creates frustration among guests but also negatively impacts ratings on online platforms such as TripAdvisor and Booking.com, where guests publicly express their dissatisfaction due to excessive waiting.

Lower quality room and common area cleaning

Staff shortages particularly burden cleaning teams in hotels, who are responsible for maintaining impeccable cleanliness and orderliness in numerous spaces. Due to insufficient numbers of housekeepers, they become overworked, leading to inadequate achievement of hygiene standards.

Guests feel comfortable in a hotel environment only when it is well-maintained and clean.

Among the most important influences on guest satisfaction, room cleanliness stands out. According to a study by NEHA (National Environmental Health Association) in the Environmental Health journal, a 1% increase in room cleanliness contributes to a 0.3% increase in overall guest satisfaction ratings.

Guests quickly notice:

• Poorly cleaned bathrooms
• Inadequately made beds
• Traces of previous guests
• Unpleasant odors in rooms
• Lack of basic hygiene supplies

Common areas, such as lobbies, dining rooms, and pools, can also become inadequately maintained if there is a shortage of staff or if they are not sufficiently qualified for regular maintenance.

Challenges in maintaining hotel infrastructure

The shortage of qualified staff also impacts the maintenance of hotel infrastructure.

Regular maintenance of rooms and facilities is crucial for the smooth operation of a hotel, but maintenance personnel are often overwhelmed with various repairs and tasks due to insufficient staffing, causing urgent repairs to be delayed.

It also frequently happens that maintenance staff lack the appropriate knowledge for certain repairs, as hoteliers had to compromise during hiring – employ a worker with limited knowledge or remain without maintenance personnel altogether.

Deficiencies such as:

• Broken air conditioning units
• Non-functioning lights
• Non-functioning or damaged electrical outlets and switches
• Issues with hot water supply

can quickly become commonplace, creating a negative impression and hindering the smooth operation of the hotel.

Increased stress and lower morale among your staff

The shortage of qualified hotel staff not only affects service quality but also causes increased stress among employees who must complete more work, often with extended working hours or without adequate breaks.

51% of workers employed in the hospitality industry, according to the International Journal of Academic Research in Psychology, report increased stress directly related to the organization of their work environment.

There is generally a shortage of well-qualified hotel staff, and if existing staff are under too much stress, there is an additional likelihood of losing valuable employees.

Increased stress is most often the result of insufficient staffing, leading to overwork and reduced employee well-being.

Consequently:

• Employees lose motivation
• Conflicts frequently arise – both among the hotel team and with guests
• Disrespectful communication occurs
• Staff fail to achieve planned goals
• Service quality drops due to less attention to detail
• There is a greater likelihood of premature resignations

The lack of adequate and experienced workforce creates a vicious cycle that lowers work morale.

Higher employee turnover

Increased overtime, physical and psychological burdens, and stress lead to higher employee turnover, as employees strive to find less burdensome work environments or better conditions in other industries.

According to data from London's HR institute CIPD (Chartered Institute of Personnel and Development), the employee turnover rate in the United Kingdom's hospitality sector between January 2022 and December 2023 was as high as 52%, by far the highest among all industries.

This trend increases the need for continuous recruitment of new workers, creating additional costs for hotels, as new employees need to be trained and introduced to the specific work processes of the hotel.

This process is time-consuming and expensive, and most importantly, it does not guarantee long-term stability and service quality.

Guest satisfaction challenges

Today's guests expect their stay at your hotel to be as comfortable as possible, while also expecting a flawless experience. This doesn't begin only when guests enter your lobby, but much earlier.

Every detail related to your staff affects the entire guest experience. Therefore, hoteliers aim to ensure guests have no negative experiences at all. Even the smallest "public complaint" can quickly ruin the good ratings you've worked hard to achieve.

The so-called "social proof" can be either your best ally or your worst enemy.

With the increasing influence of social media, many guests share their opinions not only on online booking platforms but also publicly on social networks.

It's completely normal for your potential guests to check various information sources before deciding to make a reservation. And it can easily happen that hoteliers have no access to some of these sources.

They check all possible ratings of your hotel, and if there are any negative opinions or poor ratings from past visitors, they will very likely find them. Of course, you can neutralize many ratings or opinions exactly where they appeared... but that's a completely different topic.

According to research by TripAdvisor together with research firm Ipsos Mori, as early as 2018, 52% of users reported that they do not book a hotel at all until they read reviews and opinions from past guests. This number is, of course, much higher today.

Poor ratings on platforms such as Booking.com, TripAdvisor, or Google not only reduce the number of reservations but also harm the hotel's reputation in the long term.

It is important for hoteliers to understand the impact of negative reviews and strive to improve service quality, as this is the only way to maintain reputation and guest trust.

Why does the hospitality industry struggle to attract and retain staff?

Low wages

Wages in the hospitality industry are often lower than in other sectors, which deters many workers from this industry. This leads to a lack of motivation and a high turnover rate, as employees often seek better-paid positions in other industries precisely because of dissatisfaction with pay.

Workers in the hospitality industry earned approximately 15 - 20 % less than the overall average salary.

Demanding working conditions

Working in hospitality involves long hours, weekends, holidays, and evening shifts, resulting in significant physical and psychological strain. Because of this, many desire more predictable and less stressful schedules, which the hospitality industry often cannot provide.

According to data published in the International Journal of Contemporary Hospitality Management, the average workday in the hospitality industry comprises 46 hours, exceeding the standard 40-hour workweek in other industries.

Seasonal nature of employment

Many jobs in the hospitality industry are not guaranteed throughout the year, which deters workers who desire stable and long-term employment. The seasonal nature of employment increases uncertainty and reduces the attractiveness of jobs in this sector.

Limited career opportunities

The hospitality industry offers few opportunities for advancement, which discourages employees from pursuing long-term careers in this field. Due to the lack of career development opportunities, employees do not see long-term potential in the industry, which reduces their loyalty.

43% of employees in the hospitality industry believe that this sector does not offer sufficient opportunities for career development.

Expectations of younger generations

Younger generations seek flexible work environments, remote work opportunities, and chances for greater creativity, which the hospitality industry can rarely always offer. Therefore, young people often do not choose careers in hospitality as it does not meet their expectations.

Younger generations value flexibility most in the work environment – shorter working hours, workplace flexibility, remote work, and a shortened workweek. Because hospitality often fails to meet expectations for such flexibility, fewer young people are choosing careers in this industry.

How to overcome the challenge of labor shortages?

Adjusting payment policies

The hospitality industry must improve its payment policies to become competitive with other sectors. Competitive wages are crucial, as higher pay and bonuses for overtime or holiday work can significantly increase the attractiveness of hospitality jobs.

By offering appropriate compensation, hoteliers not only attract new employees but also retain them long-term, as higher wages and additional benefits create a stable and motivated work environment.

According to research on challenges and employee retention strategies published on the Swiss academic portal MDPI by authors Peter Holland and Renee Paiulet, a mere 10% increase in wages reduces employee turnover in the industry by 5%.

Using automation and advanced hotel technology

Automation and advanced hotel technologies bring numerous advantages to modern hospitality.

The introduction of innovative technological solutions, such as a modern PMS or a content-rich and functionally high-quality guest application, allows hotels to optimize tasks, ease employees' workload, and improve the guest experience.

Key features and benefits of hotel technology include:

Digital communication:

• Provides guests with simple access to all necessary information, quick answers to questions, and efficient handling of special requests.
• Enables employees to better manage time and tasks, as they have all necessary guest data and preferences available in one place.

Automated service ordering systems:

• Guests can easily and quickly order room service, additional cleaning, or other services without having to make personal contact with staff.

Mobile check-in and check-out:

• Guests can check in and out directly via their mobile devices, reducing congestion at reception and facilitating administrative procedures.

Maintaining high service standards:

• With automation, hotels can maintain high service standards and ensure a flawless guest experience despite limited staff. The more tasks you can transfer from staff to automation, the more time staff will have to provide higher quality services.

Collecting valuable data:

• Advanced hotel technology allows hotels to collect data on guest preferences and adapt their offerings to meet their needs, improving service personalization and increasing guest satisfaction.

Personalization:

• Personalization leads to a unique guest experience.

Investments in employee development and advancement opportunities

More opportunities for training and career development are important steps for increasing employee motivation.

Hoteliers can implement career plans where employees advance to higher positions, gain more responsibilities and higher pay, strengthening their professional competencies and sense of belonging to the company.

Regular training allows employees to acquire new skills and become more confident in their work.

In research by EHL Hospitality Business School in Switzerland, author Anna-Celine Depierraz found that 78% of employees who participated in professional development programs showed greater job satisfaction. This clearly demonstrates how important professional growth opportunities are in promoting motivation.

A long-term staff retention strategy contributes to creating a stable and supportive work environment where employees are more motivated, particularly more dedicated to their work and focused on providing excellent services and strengthening hotel performance.

Collaboration with educational institutions and developing internship programs

Collaboration between hotels and educational institutions, such as schools and faculties of hospitality and tourism, is an effective strategy for acquiring new employees.

By designing internship programs and practical training, hoteliers enable young people to gain valuable practical experience and develop their professional skills in a real environment.

Many students who participate in internship programs choose long-term employment after completing their training, as they are already familiar with the work environment and have developed key skills and competencies.

This approach not only helps address the shortage of qualified staff but also establishes a lasting connection between hoteliers and future professionals.

Promoting a positive work culture

A culture of respect, team spirit, and transparency is crucial for creating an attractive work environment in the hospitality industry. Employees want a work environment where they feel valued, respected, and heard.

Encouraging regular team-building events, transparent communication, and accepting employee ideas contributes to a stronger sense of belonging and a positive work atmosphere.

Such a work environment strengthens employee motivation and reduces turnover, as employees feel like an integral part of a successful team.

The hospitality industry could become a more attractive sector by more intensively creating a supportive and positive work environment that invests in developing company culture.

Employees who are encouraged to collectively develop work culture are more motivated, loyal, and willing to contribute long-term to the hotel's success.

Summary

Digitalization of processes, implementation of advanced hotel technology, and planned and systematic engagement with hotel employees leads to relieving staff burdens while improving the overall guest experience.

While the shortage of qualified staff affects all aspects of hotel operations, from service quality to long-term success, hotels can secure a competitive advantage and constant market growth by investing in employees and modern technologies.

Key strategies, such as improved payment policies, professional employee development, and the use of advanced technological solutions, enable hoteliers to create a supportive work environment and attract and retain qualified staff.

Investing in employee strategies contributes to greater employee engagement in all areas, which directly reflects in better service quality and guest satisfaction.