Briefing: High staff turnover is costly for hospitality businesses

A new report from Deloitte, Hospitality 2015 – Game changers or spectators, found that employee turnover in hospitality can be as high as 31% and may increase further as the recession is left behind. This is nearly double the average rate for other industries and can be expensive for businesses. So how can hospitality businesses hold on to valuable staff for the long term?

In these videos hospitality experts discuss staff retention:

Staffing costs account for a tremendous proportion of hotel operation costs. Deloitte’s report states that, ‘An average hotelier spends 45 percent of operating expenses and 33 per cent of revenues on labour costs.’ High turnover rates cause extra costs in recruitment and training. According to the report 52% of the cost of replacing staff is productivity loss and 14% is orientation and training.

The report shows that the top barriers to retaining employees are lack of compensation increases and excessive workload. At entry level, hospitality jobs can typically have somewhat irregular hours and fairly low pay and can attract younger workers who may not considered hospitality a long term career. However hardworking, happy and engaged staff are essential for the smooth running of a hotel and the longer staff stay in their roles the more they will have to offer the company.

In order to impress guests companies need staff across the business who understand the industry well and are able to represent the brand at the level expected. It is well worth focusing attention on giving staff a good experience so that they want to perform their best.

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Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Hospitality is a valuable job creator

Travel & Tourism is one of the world’s largest industries and offers many fantastic opportunities for a great career. According to figures from WTTC the industry supports 277 million jobs and generates 9.8 per cent of world GDP. In the UK hospitality currently has a 3 million strong workforce and, in the run up to the general election, is being recognised as a key contributor to the UK economy.

In this briefing four experts discuss hospitality careers and share why they fell in love with the industry:

Key political parties in the UK have mentioned hospitality and tourism in their election manifesto’s, with each pledging to support the sector through various means. The recognition for this suburb industry has been welcomed by the British Hospitality Association, an organisation which campaigns for jobs and growth in the industry. The organisation is campaigning for 60,000 new job opportunities for young people in the UK by 2016 and has recently reached the 40,000 milestone. A report from the TourismAlliance, UK Tourism Statistics 2014, states that, ‘Tourism is the fastest growing sector in the UK in employment terms, responsible for almost one third of the net increase in UK jobs between 2010 and 2013.’

According to UNWTO one job in tourism generates 1.5 jobs elsewhere. UNWTOs publication Measuring Employment in the Tourism Industries says; ‘International tourism continues to exceed expectations, supporting economic growth in both advanced and emerging economies and bringing much needed support to job creation, GDP and the balance of payments of many destinations.’

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Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: the future of Europe

An established market like Europe is one which comes with intrigue, pitfalls and opportunity. The harsh reality of the recession has allowed businesses to reassess and re-analyse growth strategies for their organisations.

There is no doubt that Europe is a complex environment with huge opportunities in certain markets, next to markets which you would struggle to understand any involvement at all. In this briefing we hear expert opinions on the European market and the optimism they see for the continent. Including comment from:

  • Majid Mangalji, President of Westmont Hospitality Group on the difficult times Europe has faced
  • Philippe Baretaud, SVP – Head of Development Europe, Middle East & Africa for Accor SA on exponential expansion for Eastern Europe
  • Patrick Sanville, Director – Hotels of BNP Paribas Real Estate on the silver lining the recession has bought
  • Nick Skea-Strachan, Partner – Hotels of Berwin Leighton Paisner LLP on Southern Europe continuing to struggle
 


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Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interviews from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: successful deal-making in 2013

As the 2013 International Hotel Investment Forum makes its annual appearance in the calendar, many will be looking to network and understand where the next great deals of this year will come from. Where are the hot markets? Which are the most innovative hospitality companies? Who should we be watching? How will projects get financed? Many of the delegates will be looking for answers to these questions at the conference.

In this briefing we hear from key experts with their thoughts on where the finance will come from and what makes a great deal.

Including:

  • Kingsley Seevaratnam, of Westmont Hospitality Group, on what he thinks defines a good deal
  • Andrew Sangster, Editor of Hotel Analyst, on deal activity picking up
  • Simon Vincent, President – Europe for Hilton Worldwide on what they look for in a deal
  • And Sean Worker, CEO of BridgeStreet on the bank’s situation as we move out of recession.
 


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Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interviews from industry conferences such as the most recent IHIF conference as well as specific Hospitality Channel shoots.

Briefing: defining a good deal

Following on from last week’s briefing where we looked at the complexities surrounding hotel deals, this week we’re examining the importance of constructing successful deals. Learning from experience can often unlock the ideas and impetus needed.

This briefing includes comment from financiers and hoteliers alike on what they believe defines a good deal. Interviews this week include those with:

  • Timothy Lloyd-Hughes, of Deutsche Bank on which projects will get the debt and equity.
  • Simon Vincent, of Hilton Worldwide on what they look for in a deal.
  • Mark Wynne-Smith, Global CEO of Jones Lang LaSalle Hotels, on the confidence seen in the deal-making market.
  • And Kingsley Seeveratnam, of Westmont Hospitality Group on what he believes defines a good deal.
 


If you’ve been sent to this page but you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do so here. It’s free.

Video clips produced by yBC.tv for the Hospitality Channel, including interviews from industry conferences such as the most recent IHIF conference as well as specific Hospitality Channel shoots.

Briefing: The changing face of the consumer

Growing complexities in the contemporary environment don’t help in trying to paint a picture of your consumer. Technology, and more specifically the Internet, has opened up a wealth of opportunities but, some would argue, also a plethora of headaches.

Consumers are being seen to completely change the way they purchase everything. Hotel brands have to be malleable to this in order to retain loyal customers as well as attract new ones.

Experts this week discuss this change in the way consumers behave and the new ways of appealing to them:

  • Sir Nigel Knowles, co-CEO of DLA Piper on the fundamental shift consumers have taken, away from traditional behaviours.
  • Ed Fuller, former CEO & MD of Marriott International on appealing to a consumer with multiple brands.
  • Kingsley Seevaratnam, of Westmont Hospitality Group, on the new found sophistication consumers bring to the table.
  • And Prof. Ian Goldin, of Oxford University on the fine line organisations walk when using technology.
 


If you’ve been sent to this page but you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do so here. It’s free.

Video clips produced by yBC.tv for the Hospitality Channel, including interviews from industry conferences such as the most recent IHIF conference as well as specific Hospitality Channel shoots.

Briefing: new look investment market

With the remaining liquidity issues from the recession feeling like a little bit of a hangover, the market for investment has seen real change. Appreciating and understanding the new ways as to where hospitality will see investment is integral.

Who are the new investors? What does the market look like at the moment? How can you ensure investment into projects? These are just a few of the questions answered in this week’s briefing.

Experts include:

  • Timothy Lloyd-Hughes, of Deutsche Bank, on the new investment coming to the market
  • Mark Wynne-Smith, Global CEO of Jones Lang LaSalle Hotels, on the organisations in the middle of the financing gap.
  • Nick van Marken, Global Hospitality Leader of Deloitte LLP, on the new product that is coming to market.
  • And Kingsley Seevaratnam, of Westmont Hospitality Management, on the power of relationship lending against new investors.
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If you’ve been sent to this page but you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do so here. It’s free.

Video clips produced by yBC.tv for the Hospitality Channel, including interviews from industry conferences such as the most recent IHIF conference as well as specific Hospitality Channel shoots.

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