1. Skilled worker shortage
According to the office of national statistics, 37.4% of businesses in the hospitality industry are experiencing a shortage of skilled staff, thereby making it the industry most significantly impacted by skilled labour shortages. This is due to several different converging factors, low or tipped wages leading hospitality workers to seek employment elsewhere, increasing use of technology for efficiency making some workers obsolete and the forced retirement of older skilled workers in a period of recession.
2. Changes in consumer behaviour
Changes in consumer behaviour impacts hotels and restaurants due to increased hesitation regarding travel, and shorter booking windows for guests. These changes in consumer behaviour brought about during the pandemic have been compounded by the ensuing cost of living crisis that we are currently experiencing.
3. Meeting demand in busy periods
The hospitality industry is inherently seasonal, with increases in footfall in late spring, summer and during the Christmas period. This increase in demand often entails the onboarding of extra staff throughout these busy periods.
4. Staff Morale
Employee morale can be an issue in any industry, as unsatisfied employees do not have the incentive to exceed expectations of the customer. In turn, inferior quality service directly impacts customer satisfaction. This can be combatted by clear cut career progression pathways, as employees always desire to learn and progress within their roles.
5. High Competition
Competition in the hospitality industry is a result of two aspects, technological adaptations and changing customer profile. Connectivity and the use of mobile devices in creating a personalised experience challenges the hospitality industry as apps such as Airbnb now provide alternative solutions which appeal to some customers. Customer experience is also the largest brand differentiator, and intensifies competition as millennial customers now desire different food options and services more tailored to their disparate needs.
