Business analysts are calling it, “The Great Resignation,” and data released this week by the Bureau of Labor Statistics states that nearly 40 percent of workers who quit in August 2021 worked in restaurants and hotels. The hospitality industry is known for paying low wages for high stress jobs, often with little support from those higher up the corporate food chain. It’s not surprising that many are saying, “enough is enough.”
There’s a staffing crisis in hospitality today that leaves hoteliers looking at new ways to generate revenue, especially within the lucrative business travel segment, that doesn’t demand the same staffing levels required to execute meetings and events. According to a recent blog from travel technology platform, Vindow, some hoteliers are warming up to proposals from planners for long-term contract rates.
Except for niche markets like airline and work crews, deployments, and other special circumstances, corporate rates went virtually extinct after years of increasing demand and high occupancy rates made them unattractive for hoteliers. Improved revenue analysis empowered hotel sales managers to turn down requests for annual contracts for reduced-rate business that might undercut revenue over peak periods. On the sourcing side of the equation, corporate travel buyers started instituting comprehensive travel management programs to control spend without needing to commit to minimums. General corporate rates went the way of the dinosaur.
Just like in Jurassic Park, however, persistent COVID-related challenges in the industry seem to be generating some renewed interest in resurrecting some fossilized business practices. Are Suppliers and Buyers suddenly revaluing loyalty and ready to bring back long-term corporate rates to lock-in business travel?
Time will tell.