This & That
Heading: The money Table
Since the discussion today was about the current money issue. Paying employees a more that minimum wage. Where do we as hoteliers get the extra money that will be required in the coming months? The budget in most cases did not include a 5.00 dollar jump in wages for several thousand employees.
Let’s look at the money table, today the average salaried worker probably makes about 27,000 per year (based on 40 hours per week) in the new proposal by the DOL a 40 hour salaried worker would now receive close to 50,000 dollars. That is a 50% increase in wages for a lot of people.
Where do you propose to find the extra 26,000 dollars for those employees that qualify for this raise? Does your hotel have a gold mine in the back yard that can just dig out a few bricks and presto no problem? Next budget review will have to include a hefty line for salary increases, even if the new laws fail to pass. The industry will be impacted no matter what happens, for some industries, and states have already raised hourly rates by several dollars more per hour. Multiply the money’s by the amount of employees that will benefit by this. It will run in to the millions, and by the way no matter how you slice it, the customer will end up paying in one way or another.
My concern is that services will be affected, the rural hotels are going to be affected perhaps more than the city, and airport hotels will. The other side of the equation is the new travel sector “The Millennium’s” Where will they fit in?
This group as picky as they may be do demand a certain level of service? Will this level be able to maintain itself? Things will get worse before they get better people, be prepared for it. The food sector in particular will see a high cost in labor, and I don’t think guest are prepared for a 20.00 dollar burger. The fast food industry will have to look elsewhere to make the necessary adjustments, and still maintain a margin of profit. So as we all sit around the money table and see what our options are, we better be prepared to pay more and receive less profits. There has already been a lot of outcry over the wage law proposal, it will not matter what the outcome will be we as hoteliers will be paying more for labor. Remember the property across the street is paying more that you, you will lose your staff, money talks, the other stuff just walks.
Just notations from my trip to California for the properties I work with are located there. The solace here is that the employees of the Esperanza Group are paid well above what even the DOL is asking for, so there is not much dissention in the ranks. Hotel business it never fails to amaze me, when you think you have mastered it, zing another fire to put out, or as they say put it out before it starts.
Another morsel for thought: how about a room overlooking the NYC Bay for 25.00, don’t laugh, a van conversion for travelers is available so I hear. Airbnb now car hotels on wheels where will we end up next? Cardboard box with Wi-Fi anyone?
The Hotel Guy
Heading: The money Table
Since the discussion today was about the current money issue. Paying employees a more that minimum wage. Where do we as hoteliers get the extra money that will be required in the coming months? The budget in most cases did not include a 5.00 dollar jump in wages for several thousand employees.
Let’s look at the money table, today the average salaried worker probably makes about 27,000 per year (based on 40 hours per week) in the new proposal by the DOL a 40 hour salaried worker would now receive close to 50,000 dollars. That is a 50% increase in wages for a lot of people.
Where do you propose to find the extra 26,000 dollars for those employees that qualify for this raise? Does your hotel have a gold mine in the back yard that can just dig out a few bricks and presto no problem? Next budget review will have to include a hefty line for salary increases, even if the new laws fail to pass. The industry will be impacted no matter what happens, for some industries, and states have already raised hourly rates by several dollars more per hour. Multiply the money’s by the amount of employees that will benefit by this. It will run in to the millions, and by the way no matter how you slice it, the customer will end up paying in one way or another.
My concern is that services will be affected, the rural hotels are going to be affected perhaps more than the city, and airport hotels will. The other side of the equation is the new travel sector “The Millennium’s” Where will they fit in?
This group as picky as they may be do demand a certain level of service? Will this level be able to maintain itself? Things will get worse before they get better people, be prepared for it. The food sector in particular will see a high cost in labor, and I don’t think guest are prepared for a 20.00 dollar burger. The fast food industry will have to look elsewhere to make the necessary adjustments, and still maintain a margin of profit. So as we all sit around the money table and see what our options are, we better be prepared to pay more and receive less profits. There has already been a lot of outcry over the wage law proposal, it will not matter what the outcome will be we as hoteliers will be paying more for labor. Remember the property across the street is paying more that you, you will lose your staff, money talks, the other stuff just walks.
Just notations from my trip to California for the properties I work with are located there. The solace here is that the employees of the Esperanza Group are paid well above what even the DOL is asking for, so there is not much dissention in the ranks. Hotel business it never fails to amaze me, when you think you have mastered it, zing another fire to put out, or as they say put it out before it starts.
Another morsel for thought: how about a room overlooking the NYC Bay for 25.00, don’t laugh, a van conversion for travelers is available so I hear. Airbnb now car hotels on wheels where will we end up next? Cardboard box with Wi-Fi anyone?
The Hotel Guy