The Rising Labor Problem in Hospitality
The hospitality trade in Georgia and the Southeast is at a crossroads. Because the area prepares for main occasions—together with Atlanta’s MLB All-Star Sport (2025) and FIFA World Cup (2026)—accommodations are gearing up for elevated demand. Nonetheless, operators face a serious problem: rising labor prices, stagnant employment restoration, and declining Internet Working Revenue (NOI).
Our newest evaluation reveals that:
- Wages in hospitality have grown by 15% since 2019, however staffing ranges stay beneath pre-pandemic ranges.
- Employment restoration is at simply 87.5% of 2019 ranges, but payroll prices are at document highs.
- NOI is underneath stress, forcing operators to make powerful selections: reduce companies, increase charges, or rethink workforce administration methods.
Because the AHLA Driving Selections By means of Knowledge panel takes place in Atlanta, we discover how the area’s accommodations can handle labor price pressures with out sacrificing service high quality.
Rising Wages, Shrinking Margins: The Monetary Squeeze
The Numbers: A Labor Market in Transition
Our evaluation signifies three key developments affecting lodge profitability throughout Georgia, Florida, the Carolinas, and the broader Southeast:
1️⃣ Wage Development Has Outpaced Income Development
- Lodge wages have elevated 15% since 2019, far exceeding income development.
- Labor prices now account for a bigger share of whole working bills, squeezing margins.
2️⃣ Lodge Employment Restoration is Lagging
- Regardless of robust demand, employment in hospitality stays beneath 2019 ranges (87.5%).
- Resorts are struggling to draw and retain expertise, at the same time as wages improve.
3️⃣ NOI is Declining
- Rising wages, labor shortages, and elevated prices have led to a gradual NOI decline since 2019.
- Lodge operators report larger payroll prices however fewer workers per property, impacting service effectivity.
How Does the Southeast Evaluate?
Whereas Georgia’s hospitality sector stays resilient, it faces the identical labor price pressures as the remainder of the nation. Nonetheless, distinctive regional developments emerge:
✔ Atlanta’s Excessive-Demand Market – With main upcoming occasions (MLB All-Star Sport, FIFA 2026), demand for expert hospitality staff is outpacing provide. Resorts should pay extra to retain expertise, however margins stay skinny.
✔ Florida’s Seasonal Workforce Pressures – South Florida accommodations, notably in Miami and Orlando, see seasonal wage spikes as competitors for staff intensifies.
✔ The Carolinas’ Increasing Tourism Business – Cities like Charlotte and Charleston are experiencing document customer numbers, however labor prices and turnover stay obstacles.
In each case, rising labor prices threaten NOI, forcing operators to rethink their labor fashions.
Why Resorts Are Dropping Employees to the Gig Financial system
The hospitality trade isn’t simply competing in opposition to different accommodations—it’s competing in opposition to the gig economic system. Uber, Amazon, and Simply Eat have all capitalized on staff’ demand for flexibility, higher pay buildings, and on-demand employment fashions.
Gig Financial system vs. Conventional Hospitality Employment (2019-2024):
- Gig economic system employment has grown by 45% since 2019.
- Conventional lodge employment stays beneath 2019 ranges.
- Many hospitality staff are selecting gig work over lodge jobs resulting from higher work-life stability and better perceived earnings flexibility.
Resorts should reply. The hospitality sector should undertake versatile workforce fashions, higher labor forecasting, and aggressive compensation methods to draw and retain workers.
Options: The Way forward for Workforce Administration in Hospitality
So how can accommodations in Georgia and the Southeast fight rising labor prices and declining NOI?
1️⃣ Knowledge-Pushed Labor Forecasting
- Resorts should use predictive scheduling instruments to align staffing with real-time demand.
- Decreasing overstaffing whereas avoiding labor shortages can enhance profitability.
2️⃣ Versatile Scheduling & Workforce Optimization
- Operators should supply extra versatile work preparations, together with dynamic shifts and break up shifts to retain workers.
- Firms like Uber and DoorDash have redefined on-demand work fashions—accommodations can adapt comparable approaches.
3️⃣ Know-how-Enabled Labor Administration
- Good workforce platforms might help accommodations scale back payroll inefficiencies, optimize shift planning, and reduce time beyond regulation prices.
- The power to regulate staffing in real-time primarily based on visitor demand will outline essentially the most worthwhile accommodations transferring ahead.
The Way forward for Hospitality within the Southeast
As labor prices proceed to rise, accommodations that embrace data-driven workforce methods will outperform people who don’t.
On the AHLA Driving Selections By means of Knowledge panel in Atlanta, trade leaders will talk about:
- Easy methods to stability labor prices with service high quality
- What new workforce fashions can enhance NOI with out reducing service
- Why accommodations should compete with gig economic system employers to retain prime expertise
With FIFA 2026 on the horizon and Atlanta’s hospitality sector booming, operators who leverage knowledge, optimize labor, and rethink workforce fashions is not going to solely survive—however thrive.
Need to be taught extra? Let’s proceed the dialog on LinkedIN.
About Unifocus
Unifocus is a world chief in workforce administration know-how, serving properties in 68 nations and 31 languages. Designed for accommodations, Unifocus boosts lodge efficiency with clever analytics that automate labor budgeting and forecasting, delivering exact staffing ranges and workloads by streamlining Planning & Scheduling, Time & Attendance, and Operations Administration instruments. Staff love the cellular app for seamless communication, with options like easy shift swaps utilizing the award-winning Shift Genius, and real-time prioritization of visitor requests, housekeeping and upkeep duties. Operational effectivity is accelerated with compliance alerts that enable managers to concentrate on what really issues: maximizing visitor satisfaction and fostering a productive, engaged workforce. Uncover the way forward for lodge operations with Unifocus. Go to Unifocus.com right this moment.
