What is the ratio of hotel labor cost to operating income?

Hotel labor costs account for about 30% of operating income, and there will be differences in different regions. The labor cost in developed areas is high, and the proportion will be even greater. For example, the labor cost in the United States accounts for 50% of the total hotel cost.

Labor costs of hotels include wages, overtime pay, bonuses (legally divided into holiday gifts, monthly, quarterly, year-end and various evaluations) and subsidies (communication, transportation, etc.). ), five insurances and one gold (all employees), tooling (washing depreciation expenses), employee meals, employee dormitories, employee birthday parties and other expenses spent on managers at all levels and ordinary employees.

This is a big expense in the hotel operating expenses. If it is not well controlled, it will directly affect the hotel's net profit. Too low will lead to insufficient manpower or uncompetitive salary.

Extended data

Influencing factors of labor cost

1. Composition of labor costs: According to the unified accounting system for international hotels, labor costs are generally expressed as wages and related expenses. At present, the specific contents of our hotel's labor costs generally include wages, bonuses, allowances, five insurances and one gold, welfare meals, resignation compensation, staff dormitory expenses, and some even include transportation subsidies. For interns, it includes internship allowance, insurance and management fees that may need to be paid to the school.

2. Influence of policy and market factors: Both policy and market play a role in hotel labor costs. The most obvious policy factor is the adjustment of the government's annual minimum wage line.

Even if the salary of the most basic employees in the hotel is higher than the minimum line, they will have corresponding psychological expectations for employees. If the salary of grass-roots employees is adjusted, the effect will be coherent and systematic, which will at least affect the salary expectation of grass-roots managers.

Market factors mainly refer to the relationship between supply and demand of human resources. Nowadays, both high-end and mid-range hotel chain groups are still expanding the number of their stores, and the demand for talents is still rising, thus pushing up the labor cost price.