Labor Optimization Is Critical to Reducing Soaring Costs and Maximizing Profitability

Hospitality Upgrade | January 20, 2020

Seven practical ways to optimize the hotel workforce By Fran Worrall Labor costs are historically the largest costs for hotels, and in recent years they have far outpaced RevPAR gains, fueled by a number of factors, including low unemployment rates, higher mandated minimum wage requirements and soaring benefit costs. In November 2018, for example, the City of Oakland, Calif., approved an amendment increasing the hourly minimum wage for hotel employees from $13.23 to $15 with healthcare benefits or $20 without benefits. According to the U.S. Bureau of Labor Statistics, hourly compensation levels for hospitality employees increased by an ...