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Hotel staff shortages could push US travel costs to an all-time high

Hotel staff shortages could push US travel costs to an all-time high

NY Post
Tuesday, February 27, 2024 03:33:35 PM UTC

The US hotel industry has been grappling with inadequate staffing and higher wages — and the problems are expected to push travel costs even higher than they already are.

In 2024, hotels across the US are expected to collectively shell out $123 billion in compensation — up more than 20% from 2019, The Wall Street Journal reported, citing data from the American Hotel & Lodging Association.

Bob Habeeb, chief executive officer of Chicago-based Maverick Hotels & Restaurants, told The Journal that he will need to increase wages across his portfolio of two dozen hotels by 10% this year — an advance that will be passed partly onto guests.

“Consumers are going to have to pay more,” he said. 

Meanwhile, many hotels are still paring back amenities like daily housekeeping services, which were originally reduced or eliminated entirely during the pandemic.

Some 70% of hotels have reduced or eliminated amenities and services on-site in response to staffing shortfalls, Deloitte concluded in a travel report published in September.

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