Wages Up, Customer Service Down

The economic rebound finally hit the travel industry in the last two years, leading hotels to increase employment and wages in an effort to keep up with demand. Employment rose 1.8 percent in June 2005 over year-ago, and was up 1.6 percent in 2004 following four years of negative growth; wages rose 1.2 percent to $10.33 an hour in June.

The positive business growth and activity in the lodging industry over the last two years is damaging customer service and loyalty, according to a new study. Guest satisfaction remained flat in June but declined overall since the first half of 2004, according to Market Metrix Research. Guest loyalty has fallen as more guests are having negative experiences with hotel staff and service. Experts believe the huge increase in travel activity and lodging demand over the last two years is catching hotels and motels without adequate staff to accommodate guests.