Hotel operators, who previously slashed jobs in large numbers during the Covid era, are now re-entering the market with vigor, hiring thousands to support their ambitious expansion strategies and address vacancies stemming from significant attrition rates.
TeamLease Services, a staffing services firm, anticipates the creation of approximately 200,000 jobs in the hotel, restaurant, and tourism sectors within the next 12-18 months. Balasubramanian A, Vice President and Head of Consumer, Hospitality, and E-commerce at TeamLease, projects that roughly half of these positions will be within the hotel industry.
Hotels in various sectors are increasing their staff to meet expansions into new areas and the installation of more rooms, fueled by a strong increase in business as well as leisure travel. Balasubramanian stated that the vacancies being filled include a mix of permanent, temporary, & gig work.
Chander K Baljee, Chairman and Managing Director of mid-tier Royal Orchid Hotels, stated, “We plan to increase our room count by about 2,000 this year across our various properties and aim to recruit approximately 5,000 individuals across various levels.” Industry executives and staffing firms report significant attrition rates, ranging from 30-50% per month for many small and mid-tier hotels, leading to a notable upsurge in replacement hiring.
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“Out of our workforce totaling 8,000 employees, we experienced attrition rates ranging from 30-35%,” remarked Baljee. “These vacancies must be filled.”
Royal Orchid intends to introduce three fresh brands, one of which is a premium five-star brand. The company has already secured a new property with 300 rooms in Mumbai for this upscale venture.
Its existing portfolio comprises slightly over 100 hotels, totaling close to 6,000 rooms. The majority of its forthcoming 2,000-room inventory will be situated in western India, with subsequent expansions planned for the north and east regions.
TeamLease estimates suggest that the annual count of domestic tourists in India may witness an increase of 10 million over the next one to two years, rising from the current range of 180-200 million.
Meanwhile, forecasts indicate a 20% growth in foreign tourist arrivals during the same period, with expectations of tripling within five to six years from the current annual figure of around 10 million. The hotel industry stands poised as a direct beneficiary of this anticipated surge in tourism.
Samir MC, the Managing Director of Fortune Hotels, anticipates an 8-10% increase in the company’s hiring this year compared to the previous one, propelled by their ambitious expansion initiatives.
Fortune Hotels manages over 5,000 rooms spanning 56 cities. According to him, they are currently recruiting for positions in the front desk, housekeeping, administrative, and food and beverage departments.
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Lemon Tree, another mid-tier hotel operator, aims to incorporate approximately 2,000 rooms within this fiscal year, along with recruiting 3,000-4,000 individuals across various roles, as stated by Chairman and Managing Director Patu Keswani. He further noted, “This hiring encompasses the replacement of attrition, totaling 1,500.”
Despite significant job layoffs and reduced staffing levels due to the Covid-19 outbreak, the hotel business has recovered. We have seen a 20-25% spike in hotel demand over the previous year. This increased demand is coming from both current businesses and newly developed properties,” said Alok Kumar, President-Manpower of ManpowerGroup India.
“With the lifting of travel restrictions and the restoration of consumer confidence, both leisure and business travel are experiencing an upsurge. The demand for hotel accommodations has soared to unprecedented levels, prompting hotels to recruit additional staff to uphold service standards,” he further commented.
The most sought-after positions include front desk agents, concierges, guest relations managers, as well as housekeeping and maintenance staff.
Specialized roles such as maintenance technicians, chefs, and recreation managers are also witnessing high demand, with Manpower noting an increase of over 35% compared to the same quarter last year.
“The hotels and hospitality sector have seen at least a 20% year-over-year surge in demand for personnel,” Ciel HR Services Chief Executive Aditya Narayan Mishra said. “We are seeing huge demand for professionals across various fields such as marketing, sales, technical roles, as well as HR,” he went on to explain.
According to a recent report by ratings firm ICRA, the hotel industry is expected to achieve revenue growth ranging from 7% to 9% in fiscal year 2025.
Travel platforms have also increased their hiring efforts in response to the overall uptick in both leisure and business travel.
Ajay Sreedhara, Head of the People Function at the online travel firm Cleartrip, stated, “As our business expands, we have intensified our hiring efforts, particularly for numerous leadership roles… We are actively recruiting talent across various domains, including technology, product development, and business development. From product engineers to senior executives, we are eager to engage individuals with pertinent travel industry expertise.”
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