Hotel CRM Software May Help Address Staffing Shortage Amid Revenge Travel

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In the hotel and hospitality industry, large hotels remain the power users of hotel CRM software. But smaller operators might need to start looking at leveraging a CRM software platform as they compete for workers amid a hotel staffing shortage.

According to a recent member survey released by the American Hotel and Lodging Association (AHLA), 87% of hotels are experiencing staffing shortages. Among this group, 36% reported severe shortages. Though there are openings in most positions, 47% of survey participants said that their most critical staffing need is in housekeeping.

Moreover, employers are trying to fill an average of 10 positions per property. To do so, 81% have increased wage offers while 64% are offering flexible work hours. Another 35% of hotels have expanded their employee benefits to attract candidates. Still, 91% are not able to fill their open positions.

Revenge Travel is Surging

The hospitality industry staff shortage can be attributed to the increasing demand for travel. Travel slumped in 2020 during the pandemic lockdowns. But travelers are returning as most countries have lifted restrictions; thus, causing a phenomenon called “revenge travel.”

Industry experts predicted revenge travel could be one way to revive the crippled travel industry in a post-pandemic era. The term referred to the extreme desire of consumers to travel as a way to make up for lost time and canceled plans at the height of COVID-19.

That prediction seems to be coming true with the latest travel forecast from the American Society of Travel Advisors (ASTA) indicating that demand for travel is surging. For example, American travelers are spending more on travel despite the inflation. ASTA estimates the average daily spend per person was at $519, up 11% from $463 in 2019.

Also, people are spending more on travel (45%) than anything else: home improvement (40%), home entertainment (36%), tech (29%), sporting equipment (26%), and lawn and garden (19%). Among the respondents in the study, 66% plan to go on leisure travel before the year’s end.

Automation Critical to Address Skills Shortage

Hotel automation solutions have become a necessity as businesses struggle to find enough staff. Automating repeatable processes through software allows hotel operators to accomplish back-office tasks more efficiently. Also, they can increase productivity without hiring more personnel.

One of the ways how CRM helps business owners in the hospitality industry can be seen in front desk operations. By making use of automation features included in CRM software, hotels can automate check-in and check-out procedures. Guests can confirm and conclude their stays in a matter of seconds and with no to little contact with hotel staff. This means hotels can operate even without a fully staffed front desk.

Another benefit to using automation is in marketing. Hospitality businesses can leverage automated emails for communicating with guests. They can send out automated emails such as pre-arrival guides and FAQs. With the use of automation, businesses can maintain prompt service to their customers while reducing the time spent on speaking with staff. As a result, understaffed hotels can dedicate their employees to higher-priority projects and tasks that require more creative thinking and cognitive effort.

Users are not only limited to using hotel CRM software for customer-facing services. They can also implement it for internal communication and back-office operations. For instance, through integrations, a CRM platform can be connected to billing software. This allows a receptionist to access data collected in CRM platforms and use that data to easily issue invoices.

On the other hand, business owners or managers can integrate CRM data into booking apps and create automated workflows to make housekeeping-related tasks easier to monitor. For example, housekeeping staff can be automatically notified of guests’ preferences when preparing their rooms. Whether it’s a request for an extra mattress or special drinks the guest loves, the housekeeping staff will be notified; thus helping them work more efficiently even if they are understaffed.