Investing in Staff: The Key to Success for Hoteliers
Investing in staff is just as important as capital expenditures, according to hoteliers at the Hotel Investment Conference, Central and Eastern Europe (HOTCO). They emphasized that while the return on such investment may be harder to quantify, it is crucial for the success of hotel businesses. With the global hotel industry largely recovered from the pandemic, hoteliers cannot afford to overlook talent development.
Value Proposition for Employees in the Hotel Industry
During the panel centered on human capital and return on investment, Sabrina Westphälinger of Accor pointed out that hotel firms often fail to talk enough about career stories and the opportunities they offer employees. She stressed the importance of celebrating and highlighting these career paths within the industry. Daniela Wakefield of Hilton echoed this sentiment, stating that growth starts with investing in staff.
The Need for Continuous Staff Management
Ronald Egelman of Wyndham Hotels & Resorts highlighted the need for effective staff management that starts from their first day of employment. He compared the hotel industry’s lack of management with the army, emphasizing the importance of continuous support and development for employees. Panelists agreed that the issue became even more pronounced during the pandemic, with 30% to 40% of the workforce leaving the industry permanently.
Happy Staff, Happy Guests
Andrea Róna of Danubius Hotels emphasized the vital role of staff in providing exceptional customer service. She stated that without happy staff, there will not be happy guests. Egelman added that staff is often considered a cost line, but it is the interactions with staff that customers remember the most.
Managing Staff Culture in a Branded Hotel Firm
For international branded hotel firms, managing and retaining staff across numerous flags requires a consistent culture. Each brand within the same hotel firm has a different service culture, making it essential to find a balance that works for everyone. Information technology, such as AI, can support these efforts, rather than destroy talent. Westphälinger noted that AI can enhance existing processes and create efficiencies when implemented after comprehensive analysis and feedback from staff.
The Demand for Limited Service
Egelman highlighted the growing demand for limited service in the hotel industry, driven both by guests and investors. While some brands may be able to operate with fewer employees, it can often lead to a better environment for both staff and guests. However, finding the right balance in staffing and service remains a challenge for the hotel industry.
Analyst comment
Positive news: Investing in staff is emphasized as crucial for the success of hotel businesses. Investing in talent development is necessary for the recovery of the global hotel industry.
Short analysis: Investing in staff is essential for the success of hotel businesses and the recovery of the global hotel industry. It is important to prioritize talent development and provide continuous support and management for employees. Managing staff culture and finding the right balance in staffing and service remain challenges for the industry.
