The holiday season is a crucial period for the hospitality industry, marked by heightened activity, increased revenue potential, and unique operational challenges. As people travel, dine out, and celebrate, the demand for exceptional service and memorable experiences skyrockets. From bustling hotels to packed restaurants, the industry plays a central role in creating holiday magic while navigating the complexities of the season.

Increased Demand and Revenue Opportunities

The holidays bring a surge in demand for accommodations, dining, and event hosting. Hotels often see peak occupancy rates as families reunite, tourists explore holiday destinations, and business travelers extend their trips. Restaurants and catering services experience higher-than-usual bookings, with holiday parties, special menus, and New Year’s Eve celebrations contributing to significant revenue growth.

Additionally, the rise of holiday-themed packages, promotions, and events provides opportunities for businesses to differentiate themselves. Experiences like winter wonderland getaways, holiday brunches, and festive tours attract customers seeking seasonal charm.

Operational Challenges

Despite the revenue potential, the holiday season presents several challenges:

1. Staffing Issues:
   High demand often strains the workforce. Many employees may request time off to spend with their family, while businesses struggle to recruit temporary staff to handle the increased workload. Proper scheduling, cross-training, and incentivizing seasonal employees become critical to maintaining service quality. Hiring seasonal employees can offer that much-needed flexibility. Whether it’s staffing for events, restaurants or hotels, seasonal workers can help companies for a day, a week or even the entire holiday season. Plus, hiring seasonal staff enhances scheduling flexibility, which, in turn, can boost recruitment and retention efforts (Hospitality staffing trends to watch this holiday season 2024).

2. Supply Chain Pressures:
   From ingredients for special menus to decorations and gifts, supply chain disruptions can be a significant issue during the holidays. Businesses must plan ahead, ensuring they have the necessary inventory to meet customer expectations.

3. Customer Expectations:
   The holidays evoke strong emotions, making customers more likely to expect flawless experiences. Any interruption in service can lead to dissatisfaction or negative reviews. Staff training and contingency planning are essential to manage and exceed guest expectations.

4. Weather-Related Issues:
   Inclement weather during winter months can disrupt travel plans, leading to cancellations or delays. Hospitality providers must have flexible policies in place to accommodate such disruptions and maintain customer satisfaction.

Adapting to Trends

The holiday season also brings an opportunity to capitalize on evolving trends in the hospitality industry:

• Sustainability:
  Many customers prioritize eco-friendly choices. Offering sustainable dining options, minimizing waste, and using energy-efficient decorations can attract environmentally conscious consumers.

• Many employees take into consideration the social and environmental responsibility of a company when choosing a place to work. As customers, investors, and employees grow in their awareness of environmental, social, and corporate governance (ESG) issues, hotels are reviewing every aspect of their corporate strategy and operations, including hiring practices and roles (Constantin et al., 2022).

• Technology:
  From mobile check-ins at hotels to online booking for holiday events, technology streamlines the guest experience. Businesses can enhance convenience with apps, chatbots, and personalized recommendations.

• Local Experiences:
  Travelers are increasingly seeking authentic, local experiences. Incorporating regional traditions, cuisine, and culture into holiday offerings can make a business stand out.

 Perspective from a Small Business Owner

From 1996 to 2011, I owned and operated a small bar and grill. The holidays often presented a unique challenge, as both my employees and I wished to spend time with our families. At the same time, many of our regular patrons, our “extended family,” as I came to think of them, had nowhere else to go during holidays like Thanksgiving and Christmas.

After a few years of running the business, I decided to embrace the holidays by creating a blended family experience. This approach allowed me to cook and spend time with my family while inviting our patrons to join us. Many of them, particularly those from nearby Offutt Air Force Base, shared a natural connection with my family due to their military backgrounds. This commonality made the gatherings feel genuine and inclusive.

Though organizing these holiday events was a lot of work, the joy and lasting memories made it all worthwhile. Being a small business owner in the hospitality industry demands a significant commitment, but the personal connections and impact made the effort deeply rewarding.

Conclusion

The holiday season is both a time of opportunity and challenge for the hospitality industry. Success hinges on thoughtful preparation, flexibility, and a commitment to delivering exceptional guest experiences. By embracing the spirit of the season while addressing operational demands, hospitality businesses can make the holidays special for their customers and profitable for themselves both financially and personally.

Authors: Julie Dort & Mimi Gough

References

Hospitality staffing trends to watch this holiday season. PeopleReady. (2024, March 11).

https://www.peopleready.com/hospitality-staffing-trends-to-watch-this-holiday-season/

Constantin, M., Köpke, S., & Krämer, J. (2022, June 23). How to “ace” hospitality recruitment.

McKinsey & Company. https://www.mckinsey.com/industries/travel-logistics-and-

infrastructure/our-insights/how-to-ace-hospitality-recruitment