What are hotels struggling with?

As labor challenges persist, hotel companies are struggling to fill vacancies despite offering record-high hourly wages, greater flexibility and benefits, according to a recent American Hotel & Lodging Association survey.



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Common Challenges in Hotel Industry and Their Solutions
  • Hiring and retaining the staff.
  • Change in marketing trends and dynamics.
  • Operational issues.
  • Rising cost of daily consumables.
  • Housekeeping issues.
  • Change in guest expectations.
  • Irregular cash inflows.
  • Data security challenges.


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Why are hotels struggling? The pandemic continues to hit the hospitality industry hard, with nearly all hotels across the country now struggling with staffing shortages. According to a new survey by the American Hotel & Lodging Association, 87% of respondents said that they are suffering through a staffing shortage.

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Common weaknesses for hotels include budget limitations, lack of in-room technology, poor online reviews, lacking certain facilities, or an outdated website. Take a hard look at what your competitors do better than you, and areas that guests have flagged in negative feedback.

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Hotel workers and labor organizers have been striking and demanding higher wages and other benefits as they argue their existing salaries are unsustainable amid the region's high cost of living and rent, making commutes and buying basic goods unsustainable.

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What are the three big technology issues for the hotel industry?
  • PCI (payment card industry) compliance.
  • Unique identification numbers for hotels.
  • Support for guests with disabilities.


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A hotel is deemed over-leveraged if debt mounts up, so repayments, interest payments, and hotel operating expenses cannot be covered. The more you borrow, the higher your interest rates are likely, creating an additional risk of experiencing an investment failure.

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The average net profit margin for an Hotel business was -2%. This might seem shocking that the average hotel loses money, but you need to keep in mind a couple of things. Once you add back in depreciation which amounted to 12%, Hotel businesses are actually profitable on average.

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