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5 Things To Know for Aug. 30

Today's Headlines: China COVID-19 Lockdown Affects Millions; Global Stocks Gain After Weekend Dip; Contract Labor Helps Hoteliers Fill Job Gaps; Airline Staffing Issues Persist; Positive Customer Service Experience Drives Brand Loyalty

Dalian, China's Liaoning Province, has been placed under lockdown after 52 positive cases of COVID-19 were reported. Tourists are shown crowding at a bathing beach to cool off in hot weather on Aug. 13, 2022. (Getty Images)
Dalian, China's Liaoning Province, has been placed under lockdown after 52 positive cases of COVID-19 were reported. Tourists are shown crowding at a bathing beach to cool off in hot weather on Aug. 13, 2022. (Getty Images)

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1. China COVID-19 Lockdown Affects Millions

At least half of the 6 million residents in Dalian, a port city in China, have been placed on lockdown after 52 positive COVID-19 cases were reported in Liaoning province where the city is located, the Associated Press reports. The lockdown is due to last five days but could be extended further if more positive cases are revealed.

China’s economy has lagged behind others due to its stringent COVID-19 policy, prioritizing completely eradicating the virus rather than living with it like most other countries. The country still has strict travel restrictions barring travelers from entering and leaving, the news outlet reports.

“China has largely kept its borders closed to foreign visitors, while requiring those who do come to submit to more than a week of quarantine in hotels where sanitary conditions are often poor,” the AP reports. “Masking and regular testing are also standard and anyone found to have been in close contact with a person confirmed to have the virus is forcibly transported to field hospitals.”

2. Global Stocks Gain After Weekend Dip

Global stock values, which dropped Friday as Fed Chair Jerome Powell indicated the U.S. will continue rate hikes to fight inflation, and Wall Street futures are up Tuesday, the Associated Press reports.

“Fed officials point to a strong U.S. job market as evidence the biggest global economy can tolerate higher borrowing costs. Some acknowledge a recession is possible but say that might be necessary to extinguish surging inflation,” the AP reports.

3. Contract Labor Helps Hoteliers Fill Job Gaps

With employment still down from pre-pandemic numbers, hoteliers have had to get creative to fill the gaps, HNN’s Sean McCracken reports.

Dan Paola, vice president of operations at hospitality development and management firm Raines Hospitality, said his company has paid a premium for contract labor and has increased wages for housekeeping and front-desk employees. Retention is as big of an issue as recruitment, he said.

"It was the line-level folks for awhile, and we've seen some leveling off of that, and now it's management positions," Paola said. "We drove wages so much from that line level that now people from the [director of sales to the general manager] want their turn. And they're finding opportunities and jobs and making some moves."

4. Airline Staffing Issues Persist

Even though data from the Bureau of Transportation Statistics shows a meager 0.6% drop in passenger airline employment in the U.S. compared to pre-pandemic levels, flight delays and cancellations remain due to staffing woes, the Washington Post reports.

After encouraging senior staff to retire early or take voluntary separation at the beginning of the pandemic, current employees are far less experienced, which has been a big component of the staffing struggles, the newspaper reports.

“There are more junior people,” said Sharon Pinkerton, the senior vice president of legislative and regulatory policy for the trade association Airlines for America (A4A). “Yes, they’ve gone through training, et cetera, but they are not going to necessarily have the same expertise or productivity as people who are more senior — so that’s absolutely a factor.”

5. Positive Customer Service Experience Drives Brand Loyalty

A survey done by Mitto, a global omnichannel communications solutions company, found that 90% of Americans who experience a negative customer service interaction with a specific airline or hotel choose to take their business elsewhere in the future, unless if there’s no alternative. Thirty percent of participants said they’d never return to that airline and 42% said the same for a hotel.

"The travel and hospitality industries are uniquely poised to surprise and delight consumers. Even with 55% of travelers expecting delays during the Labor Day weekend, airlines can still foster positive customer experiences by reconsidering how they communicate with customers," said Andrea Giacomini, CEO of Mitto.

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