Key Trends in Labor and Asset Management for Hoteliers in 2025
As labor and asset management remain the two largest expenses for hotels, a fresh and strategic approach is essential to navigate rising costs, aging assets, and talent retention challenges. During her Labor & Assets Speed Stats session at The Lodging Conference, Lindsey Goedeker offered valuable insights into emerging trends shaping the industry and shared data-driven strategies that can help hoteliers prepare for what lies ahead.
From wage stabilization to addressing deferred maintenance, in this blog, we’ll share the key data from her presentation and arm you with insights to balance costs, improve retention, and maintain operational excellence without sacrificing guest experience.
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Labor Costs: Stabilizing Hourly Wages & Rising Management Salaries
Wages for hourly roles such as room attendants and guest service representatives are stabilizing after rapid increases in recent years. However, steady growth of 3–5% should still be factored into 2025 budgets to remain competitive.
While hourly wages stabilize, salaries for management roles, including General Managers and Assistant General Managers, are climbing at a faster pace year over year. Especially as a younger workforce enters the hospitality industry, adjusting salary budgets is crucial here to retain experienced leaders.
Addressing Turnover: The Importance of the First 90 Days
The first 90 days are make-or-break for new hires! For roles like room attendants and guest service representatives, this period sees the highest turnover rates, costing hotels valuable time and resources. Creating a 90-day retention plan designed to make employees feel valued can make a significant impact. Consider implementing these 5 proven strategies to mitigate turnover, especially in the initial few months of employment.
Balancing Overtime and Contract Labor
As staffing levels stabilize, hotels are increasingly relying less on overtime, resulting in reduced employee burnout and better-controlled costs. This industry-wide shift reflects a strategic decision to drive profitability by minimizing overtime expenses.
To fill guest-facing roles, many hotels are turning to contract labor as an alternative. However, this approach requires careful consideration of the trade-offs. Are reduced overtime costs offset by higher contract labor expenses? Would reintroducing overtime in a controlled manner be more effective?
Optimizing these decisions starts first with understanding your data. Labor management tools provide valuable insights, helping you evaluate the cost-effectiveness of each option and maintain a balanced, efficient workforce.
The State of Asset Management: Stabilization After Crisis
The pandemic forced many hotels to delay maintenance, leading to shortened asset lifespans and unexpected repair costs. Fortunately, increased investments in proactive management are stabilizing asset conditions and helping to mitigate these issues. Aging equipment, however, continues to be the leading cause of unplanned downtime, which directly impacts operations and guest satisfaction. By prioritizing preventative maintenance, hotels can minimize disruptions and reduce the labor costs associated with emergency repairs.
A solution like Transcendent can further streamline these efforts by tracking assets from cradle to grave, enhancing operational and maintenance practices. When replacements are needed, Transcendent’s CapEx feature automatically flags outdated equipment well in advance, allowing you to plan, budget, forecast, and approve capital expenditures before issues arise.
Action Plan for 2025: Key Takeaways for Hoteliers
- Labor Management: Budget for wage increases in hourly roles and higher adjustments for management salaries. Focus on retention strategies, especially for the first 90 days.
- Overtime vs. Contract Labor: Evaluate the trade-offs and costs of labor solutions to maintain profitability without compromising staff well-being.
- Asset Management: Prioritize preventative maintenance to extend asset life, avoid unexpected costs, and enhance operational stability.
Preparing for 2025
Success in 2025 isn’t just about controlling costs—it’s about creating a thriving workplace, leveraging data to make smarter decisions, and ultimately delivering exceptional guest experiences. By tackling these challenges head-on, you can stay ahead of the curve and build a resilient operation.
Explore how Actabl’s solutions can help you navigate 2025 with confidence. Let’s make this your hotel’s most profitable and productive year yet! We’re always here to help!
Drive profits with Actabl hotel software
Drive profits with Actabl hotel software
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