A new report by Expert Market analyzing the state of the accommodation industry finds that challenges around staff, from hiring to costs, are at the center of their concerns.
“The accommodation industry has faced a number of challenges since the pandemic, but none greater than those around staffing,” said Chris Maillard, editor, Expert Market. “At a time when quitting rates still remain higher than other industries, a main recommendation is that accommodation businesses have to prioritize their staff, from recruitment through to promotion.”
The Accommodation Industry Report surveyed more than 400 U.S. accommodation businesses on their upcoming challenges and how they aim to address them, at a time when the industry is experiencing the highest quit rates since 2022.
Forty-eight percent of the surveyed businesses said that ‘staffing issues’ were the biggest risk they face to their operation in the coming 12 months. This is a compounding industry challenge as ‘rising labor costs’ was highlighted as the second largest risk for 34%, followed by ‘rising maintenance costs’ (27%).
Both franchises and independent businesses saw staffing as their biggest risk, with a larger impact on franchises. More than half (58%) of them cited this compared to 44% of independents. This sentiment is echoed by professionals from both sectors—‘staff recruitment, retention and training’ was their main pain point.
To alleviate issues around staffing, the main measures businesses had taken were to increase staff compensation (34%), offer additional training (31%) and introduce employee retention incentives (27%).
A portion of the businesses also stated that they were making operational changes to cope—17% were introducing more self-service options, 13% were reducing housekeeping levels and 12% were lowering their front desk operating hours.
Implementing new technology was another measure businesses were taking to address the staffing shortage. Twelve percent were investing in software solutions, and a reliance on the use of mobile phone apps (14%) and AI chatbots (5%) for customer communication was cited as the primary change accommodation businesses are making over the next 5 years.
These factors, alongside rising interest rates that 19% of businesses highlighted, are creating a complex economic environment for accommodation businesses in 2025. As economic hardships rise, staffing is shown to be one of the most impacted areas, especially for franchise businesses.
When asked which areas rising business costs had affected most, cutting back on ‘hiring and & staffing levels’ was the main area for almost half of franchise (49%) businesses, and more than a third of independents (34%). A further impact on staff is that a quarter of both franchises and independents are reducing investment into employee benefits and welfare.
Of the roles that were hardest to fill, housekeeping cleaning staff were at the top—stated by 38% of the surveyed businesses. Front desk clerks (14%) came after, followed by maintenance/janitorial Staff (13%).
“People are at the heart of the accommodation industry, so finding personnel who find this aspect rewarding is key,” said Maillard. “The owners and managers we spoke to raised creating memorable experiences for guests and frequently meeting new people as their most commonly enjoyed aspects of the sector. Empowering staff with this attitude, alongside better pay and working conditions, can help alleviate the main ongoing issues.”
