Effects of Recession on Big and Small Hotel Establishments

The recession is a ripple effect that has a powerful sway over the economic sphere of the world. What is its specific effect on the hotel industry? Are a lot of workers from this industry forced to leave their jobs? Are their wages cut in half? If one is a traveler in need of accommodations or is a person looking for a vacation hotel resort getaway, what can he or she expect now that the industry is entering into this curious new global downturn? Are the effects the same for example for the big establishments in Las Vegas as with the small hotel Barbados establishments? The answer to one of the questions above – will the workers get laid off or not – is yes. Indeed, the industry is one that is a luxury. As such, it will really get a big blow from the downturn since luxury is last on the list of people’s budgets. Of course, the fastest way that a business can save money is to get rid of some of its employees. The middle managers of the industry is most likely the first tier to get laid off especially since their presence or rather absence will not make a much of a difference to the guests who barely notice them in the first place. Then after that tier, that staff who is in the front line of the industry will be the next one on the hit list. They are the room attendants, the desk attendants, the bell boys, etc. The hotel will therefore run with only a few staff thus making guests wait a little bit longer for the services these people provide since more than likely, hotels will be understaffed. That is, if there are that many guests in the first place which is unlikely anyway. Hotels will most likely try to outsource their services. Of course, only the big named hotels can do this. Small hotel Barbados or other Caribbean establishments for example which are most likely family owned will not have to outsource since it will not be so lucrative for them to do so. This will solve the staffing shortage. However, outsourced employees are most likely to be under trained and there is a good chance that such employees will not be able to meet the usual standards of service excellence that the hotel has previously been known for. Such is the fate of the hotel industry. It will mostly be the same everywhere. Business areas where hotels benefited from business travelers such as New York, or Tokyo will have less business since businesses will be cutting down on such expenses. Sharing the same fate are the resort locations such as the Caribbean or South Africa, since the tourism industry will most likely dwindle as well because of the downturn. Thus, whether it is a small hotel Barbados or the grand Luxor in Vegas, the industry will experience problems all across the board. Expect lower rates especially in resort accommodations for the next couple of years.

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