Odd Lots The Labor Episode: How the Omni Hotel Chain Is Dealing With Hiring Right Now
Jul 12, 2021
Kurt Alexander, CFO of Omni Hotels & Resorts, shares his insights on the ongoing hiring challenges in the hospitality sector. He discusses post-COVID labor shortages and their impact on customer service. Kurt highlights the shift in employer-employee dynamics, including wage increases and new hiring strategies. He also examines how hotels are adapting by enhancing operational efficiency through automation while balancing the need for personal service. The conversation reveals the evolving landscape of consumer behavior as leisure and business travel merge.
AI Snips
Chapters
Transcript
Episode notes
Drastic Workforce Reduction and Culinary Shortage
- Pre-COVID, Omni Hotels employed 22,000 people, which dropped to 1,800 within two months.
- One pre-existing challenge was the shortage of culinary talent, prompting considerations of a culinary school.
Hotel Job Spectrum
- Hotel jobs range from glamorous management roles to labor-intensive back-of-house positions.
- Housekeeping, for example, can involve cleaning 12-20+ rooms daily, which is physically demanding.
Labor Cost Significance
- Labor costs comprised approximately 37.5% of Omni Hotels' total revenue in 2019.
- Hourly workers account for 80% of the total labor costs, making wage increases a significant financial consideration.