August 2025

Employee sentiment in hospitality is largely defined by a desire for better pay and respect. On social media, a common theme is the feeling that customers no longer appreciate the service provided, and there is a debate over tipping culture. Many service workers within hospitality feel that the burden of their compensation is being shifted from employers to customers, creating an unstable income stream. A recent study found that the industry has a bad reputation in the labor market due to low earnings, high stress, and poor work-life balance. This contributes to the high employee turnover rate. While there are some reports of better job satisfaction among front-facing employees, there is a general sentiment that the industry has not fully adapted to the modern worker's expectations for fair compensation and a reasonable schedule.

In most European hospitality businesses, tips are not solicited nor accepted, because business owners will bake the costs of properly compensating employees within the price of goods sold. The United States does not do that due to a popular practice of business owners keeping costs lower by not properly compensating service workers, creating the illusion of stable pricing for goods and services, and then distracting from the financial strategy by pitting customers and employees against one another. As of yet, businesses in the United States show no interest in changing policies and practices, and there are no signs of coordination, despite recognition of the issue by consumers and hospitality employees, alike, to address this issue.

The hospitality and travel industry is showing a slow but steady recovery. The sector has finally surpassed its pre-pandemic employment peak, reaching over 17 million jobs in July, with a slight gain of 5,000 jobs for the month. While some industries within the sector, like arts, entertainment, and recreation, are showing strong growth, the traditional segments of accommodations and food services are struggling to regain their footing. A recent industry report highlights a significant problem with under-staffing, with nearly two-thirds of hotel operators and almost half of restaurant owners reporting they are actively understaffed. This suggests that while there is demand for labor, there are also significant challenges in attracting and retaining talent.

Within travel, a key theme in online discussions from airline employees, especially flight attendants, is a strong sense of being undervalued. The recent strike notice at a major airline has brought to light issues such as low pay, unpaid hours for pre-flight work, and a general feeling of being disrespected by both the company and the public. Workers feel that they are the face of the company but are not compensated for the mental and physical toll of dealing with difficult passengers and an inflexible work schedule.

In contrast, workers in the travel and tour booking sector report remarkably high job satisfaction. They are motivated by the opportunity to create memorable experiences for clients, explore new destinations, and enjoy the flexibility and independence of their roles. While a major survey found they are not entirely happy with their compensation, the non-financial rewards of the job, such as building client relationships and the ability to work on their own terms, make it a fulfilling career path for many. The main issue that may not be addressed within these discussions, is that AI can, is, and will continue to negate the need for human travel and tour agents. While a smaller aspect of their roles, including niche bookings and specific tour routes to more remote places, might still have job security, the broader functions within travel and tour booking are being replaced by automation. The main way to preserve job security will be through differentiation and might require regular VRINE analysis for smaller business owners within these sectors.

The travel industry, including airlines and tour operators, has shown strong demand and a stable labor market over the last month. A recent report from the U.S. Bureau of Labor Statistics (BLS) indicates that while the broader leisure and hospitality sector saw only modest job gains, the arts, entertainment, and recreation segment, which includes many travel-related jobs, has experienced significant growth, outpacing pre-pandemic levels. This demand is being driven by continued strong consumer interest in travel and tourism. Specific trends include: