Katarina Railko is a leading expert in the hospitality industry, known for her innovative insights into the travel and tourism realm. With her deep understanding of entertainment and events, she has become a pivotal figure, especially in expos and conferences. In this interview, Katarina shares her expertise on critical themes impacting the hospitality sector, including labor challenges, the integration of technology, and the evolving guest experience. Her thought-provoking perspectives offer a glimpse into how hotels are addressing rising costs, staffing shortages, and the expectations of today’s travelers.
What is the main promise of the hospitality industry, and how does it relate to guest experience?
The hospitality industry is fundamentally about ensuring guests feel cared for and valued. This promise is integral to the guest experience, as it encapsulates the essence of warmth and personalized service that visitors expect when staying at a hotel. From a straightforward check-in to accommodating personalized room preferences, the goal is to make guests’ stays seamless and enjoyable. However, with rising guest expectations and evolving industry standards, maintaining this level of care is increasingly challenging, yet vital for success.
How are labor challenges impacting the ability to meet this promise?
Labor challenges create significant hurdles in meeting the industry’s promise of excellent guest experience. With persistent turnover in key roles like housekeeping and front desk, hotels often struggle to provide the quality service guests expect. As staffing shortages become more prevalent, it becomes difficult to not only keep operations running smoothly but also to deliver personalized and attentive service, which can greatly affect guest satisfaction.
Could you describe some of the staffing shortages that hotels are currently facing?
Hotels nationwide are facing shortages in crucial frontline roles, from housekeeping staff to front desk personnel. These positions are essential for day-to-day operations and directly impact guest interactions and satisfaction. With ongoing difficulties in filling these positions, hotels find it challenging to uphold the standard of service they promise, leading to strains in operational efficiency and guest service delivery.
How have rising wages in major markets affected payroll costs for hotels?
Rising wages have significantly impacted payroll costs, especially in major markets where labor regulations push these expenses higher. Cities like Washington, D.C., and states like California and New York have seen increases in minimum wage, adding to the financial burden on hotel operators. This upward trend in wages across the board has forced hotels to reassess their budgets and find innovative ways to manage costs while still striving to deliver quality service.
What does the latest CBRE report indicate about hospitality worker expenses and employee hours?
According to CBRE’s report, there’s been a noticeable increase in hospitality worker expenses, with salaries, wages, and benefits rising by nearly 5 percent last year. Concurrently, the average number of hours worked by hotel employees has decreased, which underscores the difficulty operators face in filling these roles. Consequently, hotels are paying more while receiving less labor output, highlighting the strain faced by the industry in balancing costs and productivity.
How is the struggle to fill open positions affecting hotel services and amenities?
The difficulty in filling open positions leads to reduced services and amenities offered to guests. As hotels grapple with staffing shortages, there are inevitable cuts in what they can provide, affecting guest experience. While operators are seeking efficiency to protect their net operating income, they must also contend with high guest expectations, which complicates the decision-making process regarding service offerings.
Why is cutting services and/or amenities not a viable strategy for many hotels?
Cutting services or amenities risks disappointing guests and reducing satisfaction scores—both of which are crucial for a hotel’s reputation and success. Moreover, as room rates continue to rise, guests naturally expect to receive commensurate value for their money. Therefore, hotels are compelled to seek alternative solutions, such as technological advances, to uphold service standards without necessarily incurring additional costs.
How are hotel operators using technology and automation to address rising costs and worker shortages?
Hotel operators are increasingly turning to technology and automation to manage the challenges of rising costs and worker shortages. By integrating tech tools, hotels can streamline operations while focusing on personalized guest experiences. Automation handles numerous repetitive tasks, freeing staff to concentrate on more meaningful guest interactions. This approach allows hotels to maintain service quality and efficiency, despite reduced workforce availability.
What are some back-of-house tasks that AI can automate in the hotel industry?
AI can effectively automate many back-of-house tasks, including reporting, revenue yield, and occupancy forecasts. These areas traditionally involved significant manual input and time from staff. By delegating such tasks to AI, hotels can enhance operational efficiency and allocate human resources to tasks requiring a personal touch, thereby improving overall guest service.
Why is check-in considered a significant pain point for hotel guests, and how can tech provide a solution?
The check-in process is often seen as a bottleneck, especially during peak times when guests may face long waits. Technology offers solutions by providing mobile check-ins and automated platforms that minimize wait times and simplify the procedure. This tech-driven approach caters to modern guest preferences for quick and hassle-free service, ultimately enhancing their experience from the moment they arrive.
How much do hotels typically spend on front desk labor per check-in, and how might this change with the adoption of technology?
Hotels can spend anywhere between $9 to $10 on front desk labor per check-in—a cost that may see reductions with the uptake of technological solutions. Automating the check-in process cuts down on labor requirements, potentially saving substantial costs while simultaneously speeding up the procedure for guests.
What benefits do mobile check-in and mobile keys offer to both guests and hotel operators?
Mobile check-in and mobile keys provide flexibility and convenience for guests, aligning with their preference for smart device-enabled service. For operators, these technologies reduce the need for physical front desk staff and eliminate long queues, improving operational efficiency and guest satisfaction. It’s a win-win, ensuring seamless service while saving on labor costs.
How do automated service platforms, like Virdee, streamline the check-in process?
Automated platforms like Virdee transform check-in by enabling identity verification, payment processing, and key issuance through a mobile device or kiosk. This capability reduces manual input significantly, allowing guests to bypass traditional front desk bottlenecks and gain room access swiftly and independently, which enhances satisfaction and operational effectiveness.
What are some of the results hotels have reported after implementing automated check-in solutions?
Hotels have reported substantial improvements after implementing automated check-in technologies, including a 30% to 50% reduction in average check-in times. Many establishments also note a boost in guest satisfaction scores, particularly among business travelers and tech-savvy individuals, generating positive feedback and elevating brand reputation.
Can you share specific examples of hotels that have benefited from automation in their check-in processes?
The Rio Hotel & Casino, for instance, experiences over 50% check-in conversion on its busiest days through automated platforms like Virdee. Another example is LivAway Suites, which has eliminated night shifts due to full automation of the check-in process, resulting in reduced staffing requirements and enhanced reliability in service provision.
How has automating check-in impacted staffing needs, especially for night shifts?
Automating check-in has significantly reduced the need for night-time staffing, which is traditionally hard to fill. By processing check-ins entirely through automated systems, hotels are able to ease personnel demands and reduce churn, while still ensuring round-the-clock service availability, enhancing staff satisfaction and operational fluidity.
What other strategies are hotel employers using to cope with rising wages and staffing challenges?
To cope with rising wages, hotel employers are adjusting service offerings—such as providing housekeeping by request—and scheduling shifts based on demand. Technological substitution also plays a role in transforming hotel jobs, as automating tasks progressively becomes a norm, allowing businesses to manage labor costs effectively.
How might technological substitution change or eliminate certain tasks in hotel jobs?
Technological substitution has the potential to transform or even eliminate tasks, especially those that are routine and repetitive. By leveraging automation and AI, hotels can refine job roles, focusing human efforts on tasks requiring greater personal engagement. This shift not only optimizes productivity but also reshapes the workforce dynamic, fostering a balance between tech-driven efficiency and human touch in guest services.
