It is undeniable that technology has become an integral part of every business. It has reshaped operations and driven growth across industries. Human capital management has become a key area in today’s highly competitive and constantly evolving business landscape where technology is a game-changer. The global HR technology market, estimated at USD 37.66 Billion in 2023, will nearly double by the year 2032 with projections of USD 81.84 Billion. This exponential growth highlights the increasing reliance of HR technologies across industries. The travel industry is not an exception.
Understanding and addressing HCM in the travel sector
Travel and hospitality companies face many challenges in managing their human capital. Talent acquisition and retention are two of the most pressing concerns. Many companies in this sector are always on the lookout to find skilled professionals. According to a TeamLease study, the hospitality sector is expected to create around a half-million jobs in the next five years. There is a mismatch between the skills that employers require and the talent pool. This results in a talent gap of about 55-60%.
Further, in August 2023 there was a 44-percent increase in the demand for talent in the tourism sector. By 2033, India’s tourism industry is expected to create 58.2 millions new jobs. This is made worse by the increasing demand for specialised roles. Recruitment becomes a constant struggle for businesses.
HR technologies are a great way to address many of the challenges facing travel and hospitality companies. Applicant Tracking System (ATS) for example, can streamline recruitment. ATS automates tasks such as resume screening and organizing applications. It also facilitates communication between hiring teams.
Payroll management presents another challenge for most businesses within the travel and hospitality industry. Payroll management is a difficult task, especially for large companies, due to the diverse workforce, irregular schedules and multiple locations. To ensure timely and accurate payments, while adhering to regional regulations, robust HR systems are required.
Advanced HR software with integrated features for payroll simplifies complex tasks such as managing multiple schedules and locations. These systems automate time tracking, manage timesheets calculate appropriate pay rates and ensure compliance to labour regulations. This reduces the risk of error and ensures timely, accurate payments. This is especially beneficial in the hospitality sector, where complex payrolls are often a result of high staff turnover and varied work hours.
Travel and hospitality businesses face other challenges as well, including training and development. Hoteliers, restaurants and other service providers are heavily reliant on tourists from around the world. It is therefore imperative that employees bridge cultural gaps. In this sector, there are often high-risk situations such as managing difficult customers or handling cash. This requires specific training. In addition, on-the job training, which in this sector is essential, often depends upon the trainer’s abilities to impart knowledge. This results in inconsistent skill and knowledge transfers.
HR technologies are able to help companies bridge cultural gaps by providing multilingual support, and cultural competency training. In an industry that relies on foreign tourists, these tools help employees communicate effectively and offer superior service to enhance the guest’s experience. Modules of training integrated into HR software prepare staff to deal with high-risk scenarios, such as managing financial transactions or dealing with difficult customers.
AI-enabled HCM offers a comprehensive solution to many aspects of workforce administration. These systems streamline processes from leave management to performance monitoring, allowing businesses to manage their workforce efficiently without manual oversight. These solutions also feature advanced scheduling tools to ensure fair and efficient shift management. They also reduce the risk that employees will be overworked.
Travel businesses are being transformed
HCM systems encompass a wider range of functionality than the above. AI-driven HR technologies are reshaping the workforce management in travel. Advanced HCM systems see employees as strategic assets that can drive growth in an organisation. AI-powered tools streamline various HR processes—from automating repetitive tasks to offering real-time data analytics that enable informed decision-making.
In the same way, conversational bots have become a game-changer for the travel and hotel industry. These AI-powered tools are able to manage HR inquiries, process leave requests and even help with employee onboarding. Chatbots improve operational efficiency by allowing HR professionals to focus their skills and expertise on strategic activities, such as talent planning and development.
Mobile-first HCM platforms are also invaluable for employees who work in travel or hospitality. They may not have access to desktop computers or laptops. Mobile-first HCM platforms allow employees to access HR resources, payroll data, and training materials via their smartphones. These systems, which combine AI and real-time analytics with people management, help travel and hospitality companies increase employee engagement.
Bottomline?
Integration of HR technology is not an option, but rather a necessity, for travel and tourism businesses, to increase operational efficiency, close talent gaps and drive growth. The role of HR technologies in driving business success is set to increase as the industry continues its evolution.
