The recession is a dim effect that has a powerful impact on the world economic sphere. What is its specific effect on the hotel industry? Are many workers from this industry forced to quit their jobs? Are their salaries reduced by half? If anyone is a traveler in need of accommodation or is a person looking for a vacation hotel getaway, what can one expect now that the industry is embarking on this fascinating new global downturn? Are the same effects, for example, for large companies in Las Vegas as with small Barbados hotel establishments?
The answer to one of the above questions – whether workers will be fired or not – is yes. Indeed, the industry is what a luxury is. As such, it will really take a big hit by the downturn, as luxury is last on the list of people's budgets. Of course, the fastest way a business can save money is to get rid of some of its employees. The middle managers of the industry will most likely have the first level fired especially since their presence or more precisely the absence will not make much of a difference for guests who barely notice them in the first place. Then after that level, those personnel who are at the forefront of the industry will be the next person on the hit list. They are room attendants, desk attendants, bells, etc. Therefore the hotel will run with only a few staff, making guests wait a little longer for the services these people provide as more than likely the hotels will be scarce. That is, if there are many visitors in the first place which is unlikely anyway.
Most likely hotels will try to outsource their services. Of course, only big name hotels can do that. For example, small Barbados hotels or other Caribbean institutions, which are most likely family-owned, will not have to transfer resources as it will not be as profitable to do so. This will solve the shortage of staff. However, outside staff will most likely be under training and there is a good chance that such employees will not be able to meet the usual standards of service excellence for which the hotel has been known before.
Such is the fate of the hotel industry. Mostly it will be the same everywhere. Business areas where hotels benefited business travelers like New York, or Tokyo will have less business as businesses reduce such costs. Sharing the same fate are tourist sites like the Caribbean or South Africa, as the tourism industry will likely shrink due to the downturn. Thus, whether a small Barbados hotel or a large Luxor in Vegas, the industry will have problems across the board. Expect lower rates especially in tourist accommodation for the next two years.