Hotels go slow on hiring to cut costs
For the industry, power, food & beverages discounts and other complimentary offers costs are also on the radar for rationalisation.
By Meenakshi Verma Ambwani & Vishakha Talreja, ET Bureau |
| The Taj Hotel, Mumbai |
NEW DELHI: In a bid to contain costs due to lower occupancies, the hospitality industry is cutting down on its temporary staff and has slowed down on new hirings. Staff and power are considered to be the two major costs that have to be borne by a hotel.
As per current industry standards, in city hotels temporary staff forms 15% of the total employee force while in leisure hotels and resorts, it's nearly 40-60%. For the industry, power, food & beverages discounts and other complimentary offers costs are also on the radar for rationalisation.
Sarovar Hotels executive director Ajay Bakaya said, "The payroll costs are the biggest costs currently for hotels and have grown by 15-20% year-on-year. Industry players are shedding a majority of their part-time workers in a bid to contain costs." Added Howarth Consultants director Vijay Thacker, "Every hotel player has cut down on its temporary staff as a reaction to the current market condition."
While some industry players admit they have cut down on workforce, others say they are doing staff rationalisation. ITC Fortune Park president Suresh Kumar said, "We are paying emphasis on design and space as well as undertaking staff rationalisation."
As per current industry standards, in city hotels temporary staff forms 15% of the total employee force while in leisure hotels and resorts, it's nearly 40-60%. For the industry, power, food & beverages discounts and other complimentary offers costs are also on the radar for rationalisation.
Sarovar Hotels executive director Ajay Bakaya said, "The payroll costs are the biggest costs currently for hotels and have grown by 15-20% year-on-year. Industry players are shedding a majority of their part-time workers in a bid to contain costs." Added Howarth Consultants director Vijay Thacker, "Every hotel player has cut down on its temporary staff as a reaction to the current market condition."
While some industry players admit they have cut down on workforce, others say they are doing staff rationalisation. ITC Fortune Park president Suresh Kumar said, "We are paying emphasis on design and space as well as undertaking staff rationalisation."
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