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Showing posts from 2022

Can the hospitality industry recover? (by Lex Fuller)

Over the past two years, the hospitality industry has had to make major changes to deal with the many difficulties it has faced due to the COVID-19 pandemic. The most notable hurdle for the hospitality industry has been the labor shortage. With the dangers of COVID-19, it has been increasingly difficult for hotels to find and keep employees, causing the hospitality industry to make adjustments in order to compensate for the loss of on-sight workers. This leaves us with the following question, will the hospitality industry ever go back to the way it was before the pandemic? While things are opening back up after a long battle with Covid-19, the hospitality industry is still struggling to find and keep employees. According to the U.S. Bureau of Labor Statistics (2020), the amount of leisure and hospitality workers pre-pandemic was roughly 16.2 million employees in March 2020. A month later, the number of all employees dropped to 8.7 million, nearly half of what it was before. Currently,

How will the hotel industry change after COVID-19? (by Seunghyeon Bae)

     The hotel industry is one example of many industries that were hit by the influence of COVID-19. The impact of the coronavirus on the lodging industry has been enormous, with travel-free environments leading to a drop in overall metrics for hotels around the world and a significant decline in monthly hotel revenue per available room, as well as average daily rates and occupancy. But Pandemic has also reinvented its business, including providing new opportunities for the hotel industry. What changes did the pandemic bring to the hotels? The COVID-19 pandemic is expected to affect changes in the type of travel, accelerating the individualization and miniaturization of tourism activities. As the tourism experience becomes richer, there is a trend of changing from group tourism to individual tourism, and COVID-19 is expected to strengthen the tendency to prefer small-scale individual tourism or free travel that can trust mutual safety rather than group tourism. Furthermore, as the dem

Immigrant-owned Small Businesses and their Handling of Human Resources (by Jocelyn Chung)

Growing up in a household of first-generation immigrants, my parents had seldomly followed American societal norms. They run a small shop in the heart of Little Saigon in Westminster, CA, selling phone cards, lottery tickets, and water, with a laundromat running in the back. Given that they are a business of 10 employees, my father had never felt the need to hire a Human Resource (HR) Specialist to produce a standardized process of maintaining employee-employer relations. When issues come up, he, as the owner, would need to handle them – from staffing schedules, recruitment processes, as well as disciplinary action. While large corporations have created a system to tackle such issues, most small businesses do not have access to the same resources to resolve similar problems. What issues may arise for mom-and-pop shops without an HR department? Corporations with many employees require structures and processes to maximize their efficiency with conflict resolution and risk management. T

Why Do Employees Leave Their Jobs? (by Lesley Garcia)

How long has the restaurant industry been treating their sick workers with no guilt? How many times have customers treated workers in the hospitality industry terribly ? As I was browsing online for the perfect article for my paper, I came across an article from Grub Street, “ The Restaurant Industry has always treated sick workers with no remorse ”. As someone who has worked in restaurants for the past years, I can confirm that what this article expressed about this situation was a real thing.  When I used to work at Restaurant X, I never missed one shift, but sooner or later, I realized that other employees would call off because they were feeling sick. I remember my shift supervisors would let the General Manager know about a sick call-out, but in a way, the upper management sounded more bothered than worried because the sick employees could not make it to work. Additionally, this becomes a problem with customers as well because many call-outs create a place with slow service. Custo

The Great Resignation in the Hospitality Industry (by Nathalie Gardea)

The hospitality industry, like other sectors, has been affected by The Great Resignation, one reason that causes low staffing during COVID 19. Currently, many businesses are struggling with low staffing and dealing with higher turnovers. Many workers within the industry were "forced" to reconsider their positions and job roles due to the high demand for work.  According to the Bureau of Labor Statistics, a total of 1,705,000 job openings were available in the leisure and hospitality industry in February 2022. Additionally, there were 919,000 job separations in the accommodation and food service industry.  So, why are hospitality companies struggling with recruiting new workers? The main reason why few people apply for hospitality jobs is the amount of mental stress the industry holds. When returning to work, many also began revaluating their occupations and careers. When COVID 19 cases rose, many employees started experiencing an elevated level of stress and job burnout. Gene

Generation Z in The Workplace (by Adrian Laksmono)

According to the Center on Budget and Policy Priorities, the COVID-19 pandemic caused hardships for individuals and families. During the beginning of the pandemic, “ tens of millions of people lost their jobs.”  Job insecurity has led people and workers to reevaluate their lives and careers, which led to the event known as The “Great Resignation.”  The  Great Resignation  is a pandemic-era event and is named in regard to the  44% of employees  planning to look for a job or those who are already looking for a new job. This pandemic-era phenomenon has made it difficult for businesses that are trying to recover from the pandemic and are not able to find labor as unemployment rates are high and there is a shortage in the labor market.  The most prominent group of people who are willing to resign and move on are those born between 1997 and 2012, or Generation Z. Coincidentally, they are also the ones entering the workforce in the pandemic setting.  Those categorized as Generation Z look for

Wage Difference Between Genders (by Angelina Kim)

As of 2022, there is still a noticeable wage gap between men and women.  While a male is earning a dollar, the average female earns around 82-83 cents. Although this may not seem like that big of a difference, women are losing close to 20 cents of their pay compared to their male coworkers. Despite the continuous debate on this issue, for the past 15 years, there has not been much of a change in how the average woman is still earning less than the average man in a similar job. Those who argue for the difference suggest that the reason for this difference is because of the lack of experience or consistency women experience in the work field because of their temporary leave. In a large number of families, women leave or take breaks from their jobs due to raising their families and taking care of the household. Due to this reason, there are many instances where employers are seeing that female workers have been on unemployment for an amount of time. When it comes to performance, there is

Use of Social Media: The Pitfalls and Problems in Today’s World of Human Resources (by Jocelyn DeBacker)

For many of us, our lives are an open book, or perhaps more like a daily broadcast to the world of the minutiae of our existence. When I grew up in the Philippines it was all about constantly texting my friends, but when I moved to America, I discovered social media apps like Facebook, Instagram, and now the business-oriented LinkedIn. I often ask myself – “do I really need to post a picture of everything I eat or all the places that I go to”?  The reality of oversharing can certainly lead some people to have problems in the work environment or when they apply for a job as it is clear that people today seem obsessed with oversharing their lives on social media. There are guides online for advice as to how often a person should post on social media, but these seem geared to people who try to make a living by being “influencers” or businesses that need product awareness. These sites say that you should not post more than once a day, but they don’t seem to address the issue of the content

US restaurant and foodservice sales will finally exceed the 2019 level

US consumers are spending more on high-end hotels and restaurants, according to the American Express first-quarter report ( Demos, 2022 ). Reservations in the company’s Resy restaurant-booking service jumped 16% from February, making March the busiest month ever for Resy.     The NRA projected sales at $898B in 2022.   The National Restaurant Association (NRA) released the 2022 State of the Restaurant Industry report earlier ( Ruggless, 2022 ). NRA projected that total restaurant and foodservice sales would reach $898 billion, slightly exceeding the $864 billion level in 2019. In 2020 and 2021, the industry reported annual sales at $678 billion and $799 billion, respectively. Although, after adjusting the inflation, foodservice sales in 2022 would still remain 11% below the pre-pandemic level, such a growth shows a very healthy trajectory for the industry.     The pandemic has substantially changed restaurant operations.   The 2022 State of the Restaurant Industry report ( NRA, 2022 )

Hotels need corporate and group business this summer for a full recovery

Business travelers made up 52.5% of the room revenue for the hotel industry in 2019. Such a number was projected to hit 43.6% only, according to the AHLA’s 2022 State of the Industry report ( AHLA, 2022 ). That is a $21 billion gap (estimated $69 billion in 2022 vs. actual $90 billion in 2019) ( Tanzi, 2022 ). The recovery of the lodging industry is primarily driven by leisure travelers now, some of whom have become the new “bleisure” (business + leisure) travelers.     NYC’s business-travel revenue gap between 2022 and 2019: -$2.5 billion     Traditionally, metropolitan markets were the top destinations for corporate events and large conventions, but that was also the sector that got hit the most by the pandemic. The work-from-home trend could possibly encourage more bleisure travelers to stay/work in a hotel for a stretched weekend. Still, bleisure travelers are different from those attending large corporate events or conventions. They do not need any boardrooms or convention spaces

Demands for air travel are up this summer, but can the airlines handle it?

“ The demand that we’ve seen over the last five weeks has been historic. We’ve never sold more tickets in any period in [our] public history .”   --- Ed Bastian, CEO of Delta Air Lines (April 2022).   Have you booked a ticket for summer travel already? You might regret it if you have not done so yet. I was shocked to see that the ticket I tracked from the greater L.A. area to Orlando in June had gone from $300 to $1,200 in just a few weeks. As a reference, I could usually find a round-trip economy ticket between L.A. and most destinations in Europe and Southeast Asia for $600 - $1,000 before the pandemic.     It’s not just the price; the pace is picking up too.   American Express just released its first-quarter report ( Demos, 2022 ), showing that American consumers are fueling the recovery. Large corporate travel spending or international consumers, however, have not yet resumed to the 2019 level. Here are a few highlights:   Americans spent 20% more on travel & entertainment (T&a

Do you have plans to make curbside pickup permanent?

The concept of buy-online-and-pick-up-in-store (also known as “BOPS”) is not new. The pandemic just pushed more restaurants and consumers to use mobile ordering for curbside pickup services.     Curbside pickup is good for business   When COVID hit, many restaurants might have used curbside pickup simply to cover the loss from their dine-in services. It turned out that restaurants offering curbside pickup during the pandemic fared better than those without such a service.     It did not take long for restaurant chains to realize the benefits of curbside pickup. Panera Bread, Burger King, Shake Shack, and Taco Bells are among the first chains that rolled out new store design plans to embrace curbside pickup. Chipotle even introduced a digital-only restaurant that only offered delivery and curbside pickup services without a dining area. Using Chipotle’s digital-only restaurant as an example, the owners can:   Open the business in a less premium retail location with a lower startup cost