Top 5 Challenges Facing the Hospitality Industry June 4, 2018 5:12 pm

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Times are tough in the hospitality industry as growing numbers of cafés, bars and hotels compete for the consumer dollar.

Yet it’s also an exciting time to work in this expanding sector – if you’re aware of its demands and prepared to keep up with changing trends.

Here are five of the top hospitality challenges facing operators today that candidates need to be aware of.


Increased competition

More international visitors and a boom in eating out are fuelling the expansion of the hospitality sector.

According to Deloitte’s Tourism and Hotel Market Outlook, tourism and hospitality in Australia are enjoying continued growth.

Yet more hospitality outlets mean greater competition. It’s getting harder for restaurants and entertainment operators to stand out and make a living in an increasingly crowded market.

This is forcing hospitality venues to up their game if they want to attract and keep valued customers.


Retaining staff

With more outlets competing for hospitality workers, top talent will be quickly snapped up.

Because the Millennial workforce is exceptionally mobile and selective, employers have to work harder to win over premium talent.

Yet it’s not all one way. Competition among candidates is also fierce. Job seekers therefore need to sell their skills, attributes and flair in ever more creative ways to give them a bite at the best positions.


Pleasing customers

Hospitality companies can no longer expect a good return from basic service. Today’s tourists, visitors and guests set increasingly high standards when choosing their accommodation, entertainment or eating place.

With smartphones a part of everyday life, we are accustomed to quick access, prompt attention and the latest information constantly on tap.

Personalised service and streamlined leisure experiences have become the industry standard. Hospitality operators therefore have to be as smart as their phones.

The most popular companies please – and retain – their customers by offering up-to-date digital booking, service and rewards.


Changing food trends

In an age of MasterChef TV, cafés and restaurants find themselves engaged in their own foodie battles.

Increased interest in global cuisines is making it harder for food outlets to satisfy their customers’ ever more sophisticated food cravings.

With restaurant food routinely showcased on social media channels like Instagram, there’s nowhere left for sub-standard food to hide.


The Airbnb age

Travellers are also far more discerning than they used to be. The explosion in online booking sites like Airbnb and Trivago means tourists have far more than choice than ever before when booking their holidays.

Ordinary people now invite guests into their homes by registering online with one of these popular accommodation websites. This means lazier hospitality operators no longer win trade just because they are the only hotel or motel in town.

Your knowledge of the sector can help you get ahead in hospitality recruitment. A hospitality recruitment agency is also well placed to find you suitable employment.


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