Catherwood LibraryILR School

Hotels around the United States have been dealing with worker shortages and tighter budgets, and these obstacles may lead to increases in travel costs for consumers. Hotels are working with tighter budgets due to increases in employee wages, which have increased in the hospitality industry in recent years. The hospitality industry in total is expected to pay $123 billion in wages this year. Many hotels also do not provide daily housekeeping services and certain amenities due to the shortage of workers. Consumers experience a lower quality of service due to staff shortages, and they have to pay more because a portion of wage increases is passed onto consumers. Employment levels in the hospitality industry have remained low since the COVID-19 pandemic, as workers affected by pandemic layoffs switched to different industries that paid higher wages.