Workforce Dynamics
- Hiring demand is rising across airlines, hotels, and cruises, but talent supply is tight.
- Employers face skills gaps, cultural misalignment, and demand for flexibility.
- Half of employers report retention as a major challenge. Hospitality workers average only 2 years of tenure—half the U.S. norm.
- 73% of employees want to stay in the sector long term, but 4 in 10 consider leaving due to pay, stress, and lack of growth.
Retention and Motivation
- Top attrition drivers: low pay, burnout, poor management, limited growth, work–life imbalance.
- Top retention levers: competitive pay, career development, supportive culture, flexibility, and good leadership.
- Employee motivation is shaped by three core factors: pay, people, passion.
Generational and DEI Challenges
- Gen Z seeks flexibility, values-driven work, and fast advancement. Most employers only focus on flexibility, creating a mismatch.
- DEI is widely recognized but uneven in practice. Only 7% of hospitality C-suites are held by women despite women making up half the workforce.
- Local hiring and community engagement remain inconsistent, fueling trust gaps in destinations.
Technology and AI
- Over 80% of workers are optimistic about AI, seeing it as a way to reduce repetitive tasks.
- 57% of employees feel ready to adapt to AI, but only 46% of organizations have a clear adoption strategy.
- Tech can multiply productivity but poor integration worsens churn and morale.
Structural and Strategic Insights
- Frontline and operational roles drive most hiring demand but also face the highest churn.
- Compensation pressures remain the sector’s Achilles heel, especially for seasonal and entry-level labor.
- Referrals, networks, and internal pipelines outperform job boards as hiring sources.
- Long-term success requires combining flexibility, DEI, skills development, supportive leadership, and AI adoption.