The Challenge For The Hotel Industry In Poland Is The Labor Market
“In Poland, there is still a positive trend, which is influenced by several factors, including: a good economic situation, improvement of both transport and conference infrastructure, more and more cities promoting as tourist destinations. All this stimulates the development of travel traffic. Some of these changes are structural in nature and will support a positive long-term trend in the industry.
The growth in demand for hotel services is observed especially in the MICE and tourism segments. Good financial condition of companies favors the organization of conferences and trainings. The improvement of the material status of Polish society affects the change of lifestyle and ways of spending free time. New hotels are created in response. Experts estimate that in the next three years only about 5,000 hotel rooms will be created in Warsaw, not counting private premises. Availability of financing with a relatively cheap loan, growing demand, as well as good financial and operating results of the hotel industry constitute a sufficient incentive for investors.
The challenge for the hotel industry in Poland will be to overcome difficulties in the labor market. Demographic changes – aging of the population and mass economic emigration of young people cause decrease in the number of professionally active people. Large turnover of employees, especially at lower levels in the hotel industry – may cause a decrease in the quality of services. So-called employee market favors the increase in wage pressure and, as a result, reduces the profitability of our operations.
Another challenge for the industry is generation XYZ change. Generation of the Millennials – will soon be the dominant group among both employees and hotel guests. They have a different approach to time and movement in space – they travel more often, are more mobile, quickly make decisions, look for emotions and authenticity, get bored quickly – they require “new things” that they are always ready for. At the same time, they are much less loyal to the brand and tradition. Hotels must be able to face this challenge. New technologies and their universality in our lives come with help. However, the presence of employees is important in hotel services, which cannot be replaced by vending machines. Employees will be a factor influencing on the competitiveness of the hotel on the market.
Ireneusz Węgłowski, President of IGHP