AHLA Data Shows 70 Percent of Hotel Employees Laid Off or Furloughed
May 4, 2020
As much as we’re all hungering for good news right now, the staggering numbers reporting the severity of the COVID-19 crisis for the hotel industry can’t be spun in a positive light.
New data from the American Hotel & Lodging Association shows that 70 percent of hotel employees have been laid off or furloughed, as eight in 10 hotel rooms across the country remain empty. This puts the impact of COVID-19 on the travel industry at nine times worse than 9/11, with forecasted occupancy rates for this year hitting record lows worse than rates from 1993 during the Great Depression.
“The human toll of this public health crisis has been absolutely devastating for the hotel industry…. Our priority is rehiring and retaining our hardworking employees who power our vibrant industry,” said Chip Rogers, president and CEO of AHLA.
He continued, “Hotels were one of the first industries affected by the pandemic and will be one of the last to recover. The CARES Act was an important first step… but we need Congress to make important changes to the program to reflect the current economic reality and help the employees in the industries that have been impacted the most.”
While some properties have remained in operation during the pandemic, they are operating with minimal staffing. AHLA reports that on average, full-service hotels are using 14 employees to keep things running, down from 50 employees before the crisis. Resort hotels (which often operate seasonally based on geographic location) are down to five employees per resort per day, down from about 90 per day in mid-March.
The AHLA report states that $2.4 billion has been lost in weekly wages due to the crisis (citing data from Oxford Economics and Hotel Effectiveness), and nearly 3.9 million total hotel-supported jobs have been lost.
“The hotel industry is at a critical juncture. We need more resources to survive this unprecedented time,” said Rogers. “Additional funding is vital for small business owners across America, including tens of thousands of small business hoteliers, to help them keep their doors open and rehire and retain millions of employees.”
See a fact sheet with stats from the full report here.
Partner Voices
Overview:
The award-winning Orange County Convention Center (OCCC) goes the extra mile to make every day extraordinary by offering customer service excellence and industry-leading partnerships. From their dedicated in-house Rigging team to their robust Exhibitor Services, The Center of Hospitality brings your imagination to life by helping you host unforgettable meetings and events. With more than 2 million square feet of exhibit space, world-class services and a dream destination, we are committed to making even the most ambitious conventions a reality.
In October 2023, the Orange County Board of County Commissioners voted to approve allocating Tourist Development Tax funding for the $560 million Phase 5A completion of the OCCC. The Convention Way Grand Concourse project will include enhancements to the North-South Building, featuring an additional 60,000 square feet of meeting space, an 80,000- square-foot ballroom and new entry to the North-South Building along Convention Way.
“We are thrilled to begin work on completing our North-South Building which will allow us to meet the growing needs of our clients,” said OCCC Executive Director Mark Tester. “As an economic driver for the community, this project will provide the Center with connectivity and meeting space to host more events and continue to infuse the local economy with new money and expanding business opportunities.”
Amenities:
The Center of Hospitality goes above and beyond by offering world-class customer service and industry-leading partnerships. From the largest convention center Wi-Fi network to custom LAN/WAN design, the Center takes pride in enhancing exhibitor and customer experience.
The OCCC is the exclusive provider of electricity (24-hour power at no additional cost), aerial rigging and lighting, water, natural gas and propane, compressed air, and cable TV services. Convenience
The Center is at the epicenter of the destination, with an abundance of hotels, restaurants, and attractions within walking distance. Pedestrian bridges connect both buildings to more than 5,200 rooms and is within a 15-minute drive from the Orlando International Airport. The convenience of the location goes hand-in-hand with top notch service to help meet an event’s every need.
Gold Key Members
The OCCC’s Gold Key Members represent the best of the best when it comes to exceptional service and exclusive benefits for clients, exhibitors and guests. The Center’s Gold Key memberships with Universal Orlando Resort, SeaWorld Orlando and Walt Disney World greatly enhance meeting planner and attendee experiences offering world-renowned venues, immersive experiences and creative resources for their events.
OCCC Events:
This fiscal year, the OCCC is projected to host 168 events, 1.7 million attendees, and $2.9 billion in economic impact.
The Center’s top five events during their 2022-2023 fiscal year included:
AAU Jr. National Volleyball Championships 2023
200,000 Attendees
$257 Million in Economic Impact
MEGACON 2023
160,000 Attendees
$205 Million in Economic Impact
Open Championship Series 2023
69,500 Attendees
$89 Million in Economic Impact
Sunshine Classic 2023
42,000 Attendees
$54 Million in Economic Impact
Premiere Orlando 2023
42,000 Attendees
$108 Million in Economic Impact
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