A new report by the American Hotel & Lodging Association (AHLA) suggests that staff growth and enhanced services powered by new technologies will be critical to the hotel industry’s success in 2025.
According to a report by the American Hotel & Lodging Association (AHLA), the hotel industry’s success is expected to hinge on workforce expansion and service enhancements, leveraging advanced technologies to meet customer expectations in 2025. As the industry strives to return to pre-pandemic staffing levels, novel tools and approaches are being employed to both grow and maintain its workforce.
The AHLA report, drawing on Oxford Economics and STR/CoStar Group data, anticipates that the hotel industry will add over 14,000 employees in 2025. However, staffing numbers nationwide will still be significantly below those of 2019. Despite expected year-over-year increases in employment numbers in over half of the states for 2025, only Montana and Washington, D.C., are projected to surpass their 2019 staffing levels.
Rosanna Maietta, president and CEO of AHLA, acknowledges the strides made by the hospitality sector toward workforce rebuilding and career advancement opportunities. However, staffing shortages persist as significant obstacles. Nevertheless, the hotel industry has emerged more competitive than ever, emphasizing strong wages, expanded benefits, and employee satisfaction.
The report’s contributing partners, including American Express, Ecolab, Encore, Hireology, Oracle, and Towne Park, have portrayed an industry grappling with challenges and being reshaped by technology. This transformation has empowered guests, businesses, and workers alike. The industry is contending with a customer base that demands more, and thus, they are working more diligently and intelligently to meet these expectations.
Key trends and findings include:
- Staffing challenges that demand new approaches to attracting and retaining workers: Encore describes new strategies for building workforce satisfaction, and Hireology identifies factors most important for hiring the best candidates.
- Generational shifts redefining the industry: American Express finds Millennial and Gen-Z consumers are prioritizing travel experiences, even giving up daily expenses to save money for travel.
- Rising expectations of personalized service that still emphasize the fundamentals: Ecolab reports that guests still rank cleanliness at the top of their requirements for a positive hotel experience, while Towne Park finds that integrating parking, bell, and door services can deliver a competitive edge.
- Opportunities to deploy AI to meet guests’ needs in creative ways: Oracle sees AI moving “from experiment to impact” as hotels use it for everything from streamlining check-ins to scheduling staff support.
Download the 2025 State of the Industry Partner Trends & Insights Report
