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Labor Challenges Persist as Top Concern for Hoteliers

Other Worries Include Potential Recession, Increased Competition

The challenge of staffing hotels due to a shrinking and more-demanding labor pool was consistently a top concern on the minds of hoteliers throughout 2023, a study by STR shows.

The good news is that labor supply and supply-chain challenges are at least trending back down — though it’s important to note that labor issues still lead, ahead of even recession concerns as the greatest challenge to the hotel business worldwide.

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A quarterly study assessing the experiences and expectations of hotel and travel professionals around the globe, the Hospitality Industry Sentiment survey by CoStar hospitality analytics firm STR shows that certain concerns have grown among hotel and travel industry professionals, while others have become less of a challenge to their businesses.

Among the growing concerns: Leisure travel demand has lost some of its momentum, and competition to hotels is on the rise in the lodging sector.

In a new question added to the fourth-quarter 2023 edition of the survey, the majority of respondents said they expect at least a moderate to 10% rise in their property insurance costs — or have recently experienced it. Nearly a quarter of respondents said they expect an 11% to 25% increase or more to their insurance premiums.

For more insights or to participate in the Hospitality Industry Sentiment survey, click here.

Brannan Doyle is a senior research analyst at STR, CoStar's hospitality analytics firm.

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