Key Trends & Challenges
We realize that if we want to scale and impact tens of thousands more individuals we must engage in rigorous, data-driven research. From our research we have identified three key trends in the hospitality industry that will shape our new approach to programming and development:
Companies are leveraging sustainability to create a conscious lifestyles and experiences for consumers and hiring local talent to provide an authentic experience. There are growth tailwinds behind companies and brands that provide localized experiences and maintain eco-friendly habits.
Listen to millennials. Millennials are believed to be the most purpose-driven generation. Regardless of socioeconomic status, Millennials are fluent in, and influenced by, social media and technology. Gone are the days of businesses solely focusing on financial gains: 87% of millennials believe that the success of a business should be measured by its impact on the world.
The hospitality industry is a dynamic environment in an everlasting state of movement and progression. The industry is leading the charge in creating the world we want to live in. Speaking up about equal rights, food waste, health and wellness and much more. With the help of technology, the travel and hospitality industries reached more people than ever before.
We believe these key challenges must be addressed by the hospitality industry in order to sustain its continued growth trajectory:
Sustainability: Eco-friendliness is evolving from a nice to have, on-trend commodity to a must-have priority for a growing number of environmentally and socially conscious consumers. 66% of respondents would pay more for products or services from companies committed to positive social and environmental impact.
Workplace culture: Past struggles that were present in the service industry must be taught in order to raise the standard of inclusiveness. The quality of life has to improve. Women represent more than half of all students in hospitality programs at 67%. Yet, women hold fewer than 40% of all hotel managerial positions and less than 20% of general management roles. There is no more “that’s just how it is” in response to harassment, discrimination and lack of benefits for workers. Moving the needle on progress requires collaborative effort. Every industry participant, adjacent industry associations, and sponsors have important roles to play.
Job Training and Career Opportunities: There are currently more job openings than available workers. In 2009, the US Bureau of Labor Statistics estimated 353,000 job openings across the leisure and hospitality sectors. As of 2018, with the travel and hospitality industries surging, that number swelled to 1,139,000. This lack of talent causes pipeline blockages within the hospitality industry. Attracting talent to this industry requires outreach, investing in new technology, and developing procedures that improve, speed, and efficiency. Restaurants seeking to improve profitability and create jobs must identify and understand key performance metrics and create loyalty amongst employees by understanding their needs. Industry turnover rate is 73%. To improve employee experience and eventually reduce turnover, organizations are looking to cutting-edge benefits that help employees.