Where did everybody go?? The hospitality workers have disappeared.

Hundreds of thousands of hotel workers have left the industry since the pandemic. There were about 1.7 million accommodation workers employed nationwide in June, a roughly 16% decline from June of 2019, according to estimates from the U.S. Bureau of Labor Statistics.

After plummeting at the start of the pandemic, leisure travel has strongly rebounded and business travel has shown signs of recovering. Clearly, the demand is driving up prices, with the average daily room rate in the four weeks ended July 16 reaching $156, or 17% higher than the same period in 2019, according to hospitality data and analytics company, STR (Smith Travel Research).

A survey conducted in May by the American Hotel & Lodging Association found that 97% of respondents were experiencing a staffing shortage, with more than half ranking housekeeping as the most critical challenge. To recruit workers, most hotels have increased wages and are offering more flexible work hours, and some are expanding benefits, according to AHLA’s survey.

Competition for workers is fierce! A restaurant or hotel can lose half of its staff if a competitor down the street starts paying $1 or more per hour according to one of my clients that has been in the hospitality business since the early ‘90s.

I’ve done mortgages for quite a few hotel employees through the years. They are the most loyal people around. Hoping for the best to all of them!

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