AHLA: Hotels face rising costs and staffing challenges
Rising operating costs and persistent staffing challenges are the primary concerns for hotel owners across the United States, according to a recent survey by the American Hotel & Lodging Association (AHLA). Despite these challenges, most hoteliers expect travel demand in 2026 to remain steady compared to the previous year.
The survey highlights the financial pressures faced by hotel owners, with 71% citing the cost of goods and supplies as a significant concern. Labour costs follow closely at 65%, whilst fluctuating demand and occupancy affect 59% of respondents. Utility and energy costs (50%), insurance premiums (43%), and workforce shortages (42%) also contribute to the industry's financial strain.
Staffing shortages remain a critical issue, with over half of the respondents reporting their properties are somewhat or severely understaffed. To address this, hotels are offering incentives such as higher wages (70%), flexible scheduling (54%), hotel discounts (54%), and enhanced benefits (31%).
Looking ahead, 39% of hoteliers expect travel demand in 2026 to remain stable compared to 2025, whilst 29% anticipate a somewhat stronger demand. With the 2026 FIFA World Cup approaching, hotels are monitoring early booking trends, although nearly 20% report bookings below expectations.
TDM Editorial Team