TACKLING LABOUR SHORTAGES IN THE HOTEL SECTOR
Across Europe, the hospitality industry is grappling with a long-term structural challenge: a shrinking workforce. According to recent research by Teneo, birth and fertility rates have been falling steadily for decades, reducing the pool of younger workers entering the general labour market. The global CEO advisory firm’s latest analysis reveals that in 2023, the European Union's total fertility rate dropped to 1.38 live births per woman, a historic low and far below the 2.1 needed for population replacement. Birth rates have been declining in most European markets since the mid-2010s, and the effect is now rippling through the hospitality sector – fewer school leavers, fewer vocational applicants, and a smaller pipeline of early-career talent. This demographic squeeze is converging with stubbornly high vacancy and turnover levels. According to the European Commission, accommodation and
In Europe, labour shortages are being felt in the accommodation and food sectors
complement, not replace, human service. Equally, the workforce itself must be reimagined. With employment among 55–64-year-olds in Europe climbing from 50.6% in 2014 to nearly 64% in 2023, there is a growing opportunity to recruit and retain older workers, supported by ergonomic roles, mentorship schemes and upskilling programmes. At the same time, flexible contracts, micro-credentials and clear career pathways can help attract younger employees seeking variety and growth. As Andreas Scriven, Senior Managing Director at Teneo, who leads the firm’s global travel, leisure and hospitality practice, explains: “Demographics and shifting worker expectations mean the old hiring playbook won’t cut it. “Hotels that pair intelligent automation with thoughtful job design – and open their doors to experienced, older talent – will turn labour scarcity into a strategic advantage.” In short, while Europe’s population curve may be flattening, the hospitality sector’s opportunity curve is not. By blending digital innovation with inclusive recruitment and purpose-driven career design, hotels can build a more resilient, adaptable workforce for the decade ahead.
(forecast +3.3% CAGR to 2031), employment growth lags behind at just 2.1%, widening the talent gap. Layered on top are shifting worker expectations. Younger generations increasingly seek flexibility, work-life balance, and meaningful career progression; nearly half of Gen Z and Millennials identify as “job-hoppers”, and two in five hospitality workers plan to leave the sector within a year In parallel, competition from adjacent industries such as aviation and restaurants is intensifying, with both sectors facing their own shortages and offering attractive alternatives. But amid these headwinds, solutions are emerging. Drawing on its work helping organisations to become future-ready, Teneo advises that the most
food services hold one of Europe’s highest vacancy rates, reaching 2.5% in Q2 2025, while the UK’s staff turnover rate hit 38.7% in 2024, the highest of any sector. Labour costs across EU services rose 4.6% year-on-year, and even as hotel and holiday accommodation enterprises expand
successful hotel operators need to rethink both their business and people strategies. Automation is one powerful lever: adopting self-service check-in, AI-enabled housekeeping, and predictive scheduling systems can reduce labour dependency while
enhancing guest experience. Technology, however, must
Andreas Scriven, Teneo
Sources: EuroStat, Retail Times, Statista, UK Hospitality, Lodging Econometrics, The Times, Teneo research and analysis).
The road ahead: turning jobs into long-term careers The scars of the pandemic endure, but so does an unprecedented opportunity. Around the world, governments, educators and businesses are proving tourism can be a career for life, not just a stepping stone. By investing in skills, sustainability and meaningful career pathways, the
industry secures its greatest asset: people. As ITB Berlin and other platforms spotlight innovation and collaboration, the message is clear: the future of tourism will be defined not by the destinations we visit, but by the people who shape the journeys. For tomorrow’s workforce, travel and tourism offers purpose, resilience and limitless potential.
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