The evolution of labour requirements in the hospitality industry

The hospitality industry has arguably been the industry most affected by the pandemic. In the years that followed, pent-up demand and resilient consumer spending have supported a welcome recovery. However, rapidly evolving consumer behaviours combined with a rise in staff shortages represent a significant challenge for hospitality businesses. In the 2023 Deloitte European Hotel Industry survey 73% of executives reported that hiring and retaining talent will remain a priority in the upcoming year, up from 63% in 2022.

In recent years consumer preferences have become more varied and complex than ever before. The emergence of 'bleisure' travellers, who blend business with leisure and a surge in experiential luxury travel underscore the need for a workforce that can cater to diverse demands. This shift requires staff to not only be versatile but also capable of providing hyper-personalised experiences. With younger generations driving market trends, employees must adapt to offer unique, tailored services that resonate with these new consumer segments.

Simultaneously, how technology is embedded within the guest experience is evolving. The integration of AI and digital tools is not about replacing human interaction but augmenting it. From streamlining check-in processes to personalising guest experiences, incorporating technology effectively will help to improve operational efficiency and enhance guest satisfaction. This proves to be a clear opportunity for differentiation for mid-sized hospitality companies to compete with large hospitality brands. However, there is a real challenge in balancing technological convenience with the personal touch that many consumers seek as part of their guest experience.

In addition, the increased adoption of AI among corporations globally is likely to shift the balance and nature of jobs globally. Increased automation of tasks will reduce job opportunities for more junior roles, which presents a unique opportunity for the hospitality industry to recapture a new pool of emerging young talent. To do so, the industry needs to reposition its talent attraction programs and highlight the opportunities for long-term career growth. That trend is already emerging, with companies re-framing job titles and descriptions as part of a broader strategy to make hospitality roles more appealing and dynamic.

As the hospitality industry navigates through this period of significant transformation, its ability to adapt and innovate is crucial. Understanding evolving consumer preferences, integrating technology with the human touch and redefining traditional roles are not just strategies, but imperatives to ensure sustainable growth for the future. Embracing these changes will not only help the industry to meet the challenges of today but also shape a more vibrant and sustainable future.

Key takeaways

• Attracting and maintaining skilled staff is a key priority for businesses in 2024.
  
• To attract a new generation of talent, roles must evolve in line with workforce expectations, and focus more on dynamic, rewarding and engaging jobs that also support development for future opportunities.
• Staff training should focus on equipping employees with the skills to cater for diverse and evolving consumer preferences, including better personalisation and increased adaptability.
• Maintain the personal touch despite integrating AI and digital tools. Human interactions define the hospitality experience. Technology should be used to enhance, not replace hospitality staff.
• Businesses can gain a competitive advantage by creating innovative service designs that cater for the evolving preferences of guests, including younger consumers who are more likely to seek unique and authentic experiences.