NYC tourists will face even stiffer hotel rates, skimpier services after 'shocking' new labor contract: experts

A new hotel labor contract taking effect in July will bring the largest wage increases in nearly 100 years. Hotel operators expect the added labor costs to be passed to guests through higher room rates over time, while also cutting services to offset expenses. Likely changes include reduced housekeeping hours, fewer front desk agents and concierges, and shorter restaurant and bar hours. Some luxury hotels may eliminate evening turndown service. Hotels may also encourage guests to reuse towels and sheets as a labor-saving measure and shift from full breakfasts to grab-and-go options. Rate increases depend on demand, which is typically slower in summer.

"Visitors to New York City can brace for even stiffer hotel bills and skimpier services starting in July when a new hotel labor contract goes into effect, industry experts told The Post. The new contract - which follows hard-knuckle negotiations ahead of next month's World Cup festivities coming to New Jersey - represents the "largest wage increases in our nearly 100-year history," the union crowed last week. Hoteliers say the pay hikes will ultimately get passed along to their guests."

""This is a shocking contract and will result in higher room rates and loss of services, because something has to give," said one hotel executive who did not want to be identified for fear of retribution from the Hotel and Gaming Trades Council, which represents 30,000 city hotel workers. Hotels will likely reduce housekeeping service hours, have fewer front desk agents and concierges on duty at the same time and cut back restaurant and bar hours, according to the hotel executive. Some luxury properties, meanwhile, might eliminate turndown service in the evening."

"Others may also emphasize green initiatives, asking guests not to request new towels and sheets every day - which is also a labor saving strategy. "If money is tight, hotels find a way to do less," the executive said. "A full breakfast becomes a grab-and-go to simplify costs." But raising hotel room rates will depend on demand which is generally slower during the summer, experts say."

""Room rates do not change immediately though over time it is possible that rates go up," Vijay Dandapani, chief executive of the Hotel Association for New York City told The Post. New York City hotels charge on average $385 per night - the second highest rate behind Maui Island at $481 - for the most recent period between May 1 and May 16, according to CoStar Group, a hotel data analytics firm."

Read at New York Post