The travel industry has mastered the art of measuring demand—arrivals, occupancy, passenger numbers—but a less visible metric is now proving equally critical: the resilience of the workforce. As record numbers of travellers seek rest and recreation, the people delivering those experiences are buckling under staff shortages, extended workloads, and rising burnout. For hotels, restaurants, and travel operators, this is no longer just an HR issue; it is a fundamental operational challenge.
The scale of the workforce gap
The World Economic Forum's Travel & Tourism Development Index 2026 projects that demand for workers in the sector will outstrip supply by more than 43 million by 2035—a shortfall of 16%. This is not a distant problem. The WEF notes that workforce constraints are already hampering businesses' ability to meet demand and maintain service quality.
The recruitment challenge has shifted. Filling seasonal vacancies is one thing; retaining experienced staff who are exhausted by unsustainable workloads is another. The cycle is self-perpetuating: vacancies increase the burden on existing employees, leading to fatigue and burnout, which in turn drives more departures.
A May 2026 poll of about 100 hospitality professionals by OysterLink found that 34% cited understaffing as the primary reason workers leave the industry, followed by low pay at 32%. While the survey is small and not globally representative, it reflects a reality that operators across markets are confronting. The International Labour Organization reported in 2025 that tourism continues to face labour and skills shortages, exacerbated by seasonality, informal employment, and wages below economy-wide averages.
Operational impact on hotels
The pressure is visible in hotel operations. An American Hotel & Lodging Association survey from March 2026 revealed that more than half of participating properties were somewhat or severely understaffed. Labour costs were cited by 65% of hotel owners as a financial pressure, and 42% identified workforce shortages as a key concern.
Timing is critical. US hotels are preparing for a year of major events, including the FIFA World Cup, while already managing higher labour and operating costs. In New York, hotel operators and unions reached an eight-year labour agreement covering around 25,000 workers in May, just before the World Cup. The negotiations centred on wages, staffing, and workloads—clear evidence that workforce issues have moved to the heart of hotel strategy.
For hotel companies, the equation is delicate. Higher staffing costs can squeeze margins, but running understaffed leads to overtime, turnover, recruitment expenses, and compromised guest service. Some are turning to technology for relief, such as collaborative robots to ease the staffing crunch, but these are not a complete solution.
A structural, not just pandemic, problem
The pandemic accelerated the exodus of workers from tourism, but the industry's labour difficulties predate Covid. The OECD has described tourism's workforce shortages as a structural issue rooted in low wages, variable and long hours, casual employment, limited social protection, and skills gaps. Accommodation and food services account for more than half of tourism jobs in many countries, and these subsectors have experienced persistent shortages.
Workers who left during the pandemic often moved to industries with more predictable hours and clearer career paths. That competition is unlikely to ease simply because visitor numbers are rising. The industry must now compete harder for talent, offering better conditions and development opportunities.
The migrant worker dimension
International mobility has become a key part of hospitality's workforce strategy, particularly in markets that rely heavily on migrant labour. A June 2026 study in Tourism and Hospitality Research examined burnout among migrant hotel workers, finding that it is shaped by employment insecurity, financial pressure, cultural expectations, emotional demands, and limited organisational support. The research, based on 17 in-depth interviews, offers a qualitative glimpse into the conditions affecting a significant portion of the international hotel workforce.
For global hotel groups, recruiting across borders can fill vacancies, but it does not solve the deeper issue of sustainable working conditions. As luxury travel partnerships expand globally, the need for a stable, motivated workforce becomes even more critical.
Seasonal pressure and the road ahead
Seasonality intensifies the problem in destinations where demand spikes for a few months. A hotel cannot postpone housekeeping, a restaurant cannot close the kitchen mid-service, and an attraction cannot simply cap visitor numbers when the workforce is stretched. The burden falls on existing staff, leading to higher turnover and burnout.
New Zealand has been tracking this issue, and other destinations are following suit. The industry must address the root causes—wages, working conditions, and career development—or risk a permanent talent deficit. As travel demand continues to surge, the workforce crisis is not just a labour issue; it is a threat to the very experience that tourism sells.
