​In today’s rapidly evolving UK economy, maintaining stable teams within the hospitality industry has become increasingly challenging. With hospitality businesses about to be hit by £3.4 billion in additional annual costs in April, only 14% of businesses feel optimistic about the hospitality market, according to research from CGA by NIQ’s Business Confidence survey. The likelihood is that businesses will need to look for opportunities to make the most out of the resources they have, which means getting the best out of existing teams, and ensuring that everyone is revenue aware and looks out for additional revenue opportunities. 

We already face high employee turnover rates across all areas of operations, with recent data indicating that the hospitality industry has the highest turnover rate in the UK, with 37.6% of employees leaving their jobs each year. This instability not only affects operational efficiency but also impacts customer satisfaction and the overall profitability of businesses. 

Factors Contributing to High Turnover

Several factors contribute to the high turnover rates in the hospitality sector:

1. Inadequate Training and Development: Insufficient training and development in hospitality play an undeniable role in high turnover rates.
2. Employee Burnout: Labour shortages and employee burnout continue to plague hospitality, with more than half (53%) of UK managers in the sector acknowledging that their company and staff are suffering.
3. Short Tenure: The hospitality industry has the second-lowest retention rate in the UK, with employees staying an average of just three years at a company.

The Impact of Training on Employee Retention

Investing in comprehensive training and development programs has proven to be an effective strategy for enhancing employee retention. Training equips employees with the necessary skills and knowledge, leading to increased job satisfaction and motivation. As employees become more competent in their roles, they are more likely to feel valued and committed to the organisation, reducing the likelihood of turnover.​

The Role of Revenue Management Training

One specific area where training can have a significant impact is revenue management. By extending revenue management training beyond specialised roles to include front office staff, reservations teams, and marketing personnel, hotels can foster a more inclusive and knowledgeable workforce. This approach aligns with our thinking which which advocates that in fact,  “It’s Time to Think Differently” and enable a broader understanding of revenue management principles across all departments.​ When employees across various functions comprehend revenue management strategies, several benefits emerge:​

• Enhanced Collaboration: A shared understanding of revenue management fosters better communication and collaboration among departments, leading to more cohesive, effective and stable teams.​
• Increased Motivation: Employees who understand the financial impact of their roles are more likely to feel empowered and motivated, contributing to higher job satisfaction.​
• Improved Retention: As employees gain valuable skills and see opportunities for career advancement, their commitment to the organisation strengthens, resulting in reduced turnover rates.​
• Increased revenue contribution – Employees can recognise where they can contribute to revenue uplifts and further optimise the existing revenue strategy

Where Revenue Academy can help

Revenue Academy offers industry-recognised revenue management training designed to equip hospitality professionals with the skills needed to optimise pricing, maximise profitability, and adapt to the evolving market. By providing courses tailored to various roles within the hospitality sector, Revenue Academy ensures that employees at all levels can contribute effectively to the organisation’s revenue strategies.​ Implementing such training programs can positively contribute to a more stable and motivated workforce, addressing the challenges of high turnover and fostering a culture of continuous improvement.​

In the face of economic uncertainties and high employee turnover, we must adopt innovative approaches to maintain stable teams. Investing in comprehensive training and development, particularly in revenue management, can empower employees, enhance job satisfaction, and reduce turnover rates. By embracing the principles of  “It’s Time to Think Differently” and leveraging resources like Revenue Academy, hospitality businesses can build resilient teams capable of thriving in today’s dynamic economy.

Explore the Revenue Academy courses and discover how we can help you build and sustain stable teams for long-term success.

Our Sources:

UK Money, Hospitality Net, EHL Hospitality News, ​Harpers, ​Craft Guild of Chefs