- Hospitality labour costs have risen due to payroll regulations.
- The national minimum wage has increased to €14.15 per hour in Ireland.
- Labour pressures have contributed to 61 months of hotel rate increases.
- Food and energy inflation has further squeezed hotel margins.
- Hotels have passed on increased costs to customers through higher rates.
Hoteliers across Europe are facing intense pressure from newly implemented payroll regulations which have forced hotels to raise room rates just to cover basic staffing. The hospitality sector has been particularly affected by labour cost increases. The national minimum wage has increased to €14.15 per hour in Ireland, with similar pressures being felt across European markets.
The labour cost pressures have contributed to the 61 consecutive months of average daily rate increases in the Spanish hotel sector. Hotels have passed on the increased costs to customers through higher room rates. The Hotel Price Index has jumped 5.9pc year-over-year and average daily revenue per occupied room has surged nearly 6.8pc, hitting an average of €156.92.
Food and energy inflation has further squeezed hotel margins. The combined pressures have forced hoteliers to raise prices to maintain profitability.
