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filler@godaddy.com
Why Wages & Benefits Will Continue Rising Through 2030
Structural Drivers:
- Persistent labor shortages (AHLA notes ongoing shortfalls; high turnover of 70–80%).
- Union contracts with multi-year raises (e.g., New York City hotel agreement delivering ~5% annual increases, leading to large cumulative gains by early 2030s).
- Minimum Wage:
- Los Angeles tourism wage path: rising toward $30/hour by 2030.
- Similar scheduled increases in other California cities and select markets.
- Broader wage pressure from competing industries and cost-of-living increases.
- Employers using higher base pay + enhanced benefits to fight turnover.
PRODUCTIVITY
The robot should attack the least valuable human hours.
A bellperson pushes luggage from lobby to room.
A housekeeper walks linens from storage to a floor.
A banquet employee pushes cases of beverages from receiving to a ballroom.
A purchasing employee moves supplies from the loading dock.
An engineer transports equipment.
A room-service employee walks a delivery through corridors.
Those activities are necessary.
But the transportation itself usually isn't where the employee creates value.
Value
The employee creates value when they:
greet the guest, solve a problem, clean a room, set an event, repair equipment, inspect inventory, prepare food, sell an upgrade or provide hospitality.
The robot should automate the walking, pushing, pulling and transporting between those activities.