The hotel industry is set to expand its workforce in 2025 while embracing new tools and technology to meet evolving guest demands and enhance employee retention, according to a report released today by the American Hotel & Lodging Association (AHLA). Despite these efforts, staffing levels across the nation are still expected to lag behind pre-pandemic figures.
Drawing on state-level data from Oxford Economics and STR/CoStar Group, the AHLA projects that over 14,000 new hotel jobs will be added nationwide this year. However, only Montana and Washington, D.C., are expected to surpass their 2019 pre-pandemic staffing levels. Although more than half of U.S. states are anticipated to see year-over-year job growth in the hospitality sector, challenges in recruitment and retention remain a pressing concern.
“The hospitality sector has made significant strides in rebuilding its workforce and creating opportunities for career advancement, but staffing shortages continue to present significant challenges,” said Rosanna Maietta, president and CEO of AHLA. “The good news is that hotels have never been more competitive, offering strong wages and expanded benefits and focusing on employee satisfaction.”
Offering an in-depth look at key trends shaping the hospitality landscape, today’s 2025 State of the Industry Partners Trends and Insights Report is a follow-up to the AHLA’s broader 2025 State of the Industry study, which was published in February.
Industry leaders—including American Express, Ecolab, Encore, Hireology, Oracle and Towne Park—contributed to the study, with each highlighting both the challenges and technological advancements shaping hospitality today. Their insights reveal an evolving landscape where guests, businesses and employees are benefitting from innovation while hotels strive to meet rising consumer expectations with smarter, more efficient operations.
Key Trends and Findings:
- Addressing workforce shortages requires innovative recruitment and retention strategies. Encore explores methods to enhance employee satisfaction, while Hireology pinpoints key factors in attracting top talent.
- Changing generational preferences are reshaping the industry, with American Express reporting that Millennial and Gen-Z travelers are prioritizing experiences over material goods, often cutting back on daily expenses to fund their trips.
- ·Increasing demand for personalized service continues to emphasize hospitality essentials, with Ecolab noting that cleanliness remains a top priority for guests, while Towne Park reports that seamlessly integrating parking, bell and door services can provide a competitive advantage.
- AI deployment is enhancing guest experiences, with Oracle noting that the technology is shifting "from experiment to impact" as hotels implement it for tasks such as streamlining check-ins and optimizing staff scheduling.
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