Exclusive: Hotels struggle with double whammy of staff costs and pressure on room rates

Scotland's hotels outperform UK despite rising costs - DRAM Scotland

Scotland’s hoteliers faced a challenging April as employment costs climbed and room rate pressures mounted. Yet despite the squeeze, the sector reported stronger profits, outpacing performance elsewhere in the UK, according to the latest RSM Hotels Tracker. The data, compiled by Hotstats and analysed by RSM UK, shows hotel payroll in Scotland rose year-on-year from 31.7% to 32.4% of revenue. Across the UK, payroll costs jumped from 31.6% to 33.3…

Hoteliers Hit With Double Whammy Of Rise In Staff Costs And Pressure On Room Rates - CLH News: Caterer, Licensee and Hotelier News - News for Pubs, Bars, Hotels and Restaurants

Share Post Share Email Hoteliers were hit with a double whammy in April, as they faced a rise in employment costs, along with price pressures on room rates, leading to a decline in profits, according to the RSM Hotels Tracker. The data, which is compiled and produced by Hotstats and analysed by RSM UK, shows UK hotel payroll (as a percentage of revenue) increased from 31.6% to 33.3% in April year-on-year, and f…

Managing Hotel Labor Costs Today | By Kasia M. Russell

Managing labor costs in a hotel operation is crucial to maintaining a profitable business while delivering the service level that is commensurate with the scale of hotel. Finding this balance has been especially difficult in a post-COVID-19 environment given inflationary challenges and labor supply shortages. This article describes some of the challenges surrounding labor management and explores innovative ways to manage these costs effectively.

Exclusive: Hotels struggle with double whammy of staff costs and pressure on room rates

Hotels struggled with falling profit in April after margins were squeezed by higher staff hosts and price pressure on rooms. UK hotel payroll costs increased from 31.6 per cent of revenue to 33.3 per cent in April year-on-year, and from 29.5 per cent to 31.4 per cent in London, according to RSM. A slight reduction in hotel room rates, from £138.29 to £137.54, put further pressure on margins. While high demand boosted occupancy year on year, it w…