The hospitality landscape is becoming more vibrant and dynamic. It is at the cusp of transformation, especially in tiers 2 and tier-3, which are experiencing a dynamic shift owing to opportunities and growth. This has created more demand for skilled professionals in the food industry who have the expertise to understand the local dynamics and provide tailor-made experiences to suit people’s requirements.
According to data from Jones Lang LaSalle (JLL), a leading global commercial real estate and investment management company, 217 new hotels in tier-2 cities and 176 new hotels in tier-3 cities were opened in 2023. The rapid growth in urban centres is driven by increasing domestic tourism, rising disposable incomes, and an evolving middle class that demands higher service standards.
As hotels, resorts, and restaurants pop up, talent shortage in smaller urban locations has become a critical challenge. Addressing this talent gap presents both difficulties and opportunities.
The hospitality sector’s expansion in tier-1 cities like Mumbai, Delhi, and Bengaluru has been matched by a simultaneous surge in tier-2 cities such as Jaipur, Kochi, and Indore. The hospitality industry thrives on human connection, exceptional service, and a commitment to creating memorable experiences.
A skilled and dedicated workforce is a prerequisite and non-negotiable to achieve this. However, these smaller urban locations often struggle with an acute shortage of skilled professionals in various domains—from housekeeping and food service to guest relations and management. This trend is echoed in another survey by JLL, in collaboration with The People Network, which shows that hotels now have 20-30% fewer staff than in the pre-pandemic era because the workforce shifted to other industries and decided not to return to the hospitality industry. So, the hotel industry, already plagued by a workforce shortage, is still grappling for skilled talent, particularly in tier-2 and tier- 3 markets.
This is partly because smaller cities traditionally need more advanced training institutes and hospitality schools than their metropolitan counterparts, resulting in fewer locally trained professionals. Plus, aspiring candidates from these cities frequently migrate to tier-1 cities or abroad, attracted by better career prospects and higher salaries.
Also, certain perception issues surround the profession. Careers in hospitality are often not seen as prestigious or high-paying compared to other industries.
Expanding education
While the talent shortage presents challenges, smaller cities also have a lot of untapped potential. These cities boast a young population, offering a ready pool of potential recruits who can be trained in the hospitality sector. Also, setting up and operating hotels in these locations can be less expensive than metros, providing potential for faster growth and increased profitability for these businesses.
Moreover, smaller cities often possess a rich cultural heritage and distinct culinary traditions. Hotels in these locations can leverage local culture to offer unique experiences, attracting tourists seeking authenticity.
Educational institutions have a critical role in addressing the talent shortage in the hospitality sector. Their contributions, aimed at elevating skill standards, can be extremely useful, involving curriculum development, partnerships and community engagement.
Educational institutions can establish campuses in these areas, providing high-quality education and practical training. Institutes could also focus on developing dynamic courses aligned closely with industry requirements. This can include subjects in technology, sustainability, and guest experience management and training in soft skills like customer service, language proficiency, and cultural sensitivity.
Practical training and partnerships
Greater emphasis should be placed on internships and practical training, which can provide students with hands-on experience and a better understanding of the industry’s demands. For this, institutes can partner with local businesses to design apprenticeship programmes.
Institutions should focus on creating centres of excellence to offer high-quality education and hands-on training. This will improve our workforce’s skill set and open many job options, spurring innovation and growth in the hospitality industry.
Community outreach programmes such as awareness campaigns and career counselling sessions can help students and parents better understand the potential of a career in hospitality and make informed decisions about their future. Regular interactions with industry professionals through guest lectures and workshops can keep students updated on best practices.
Use of technology
In addition to all this, leveraging technology is of utmost importance. For example, developing e-learning platforms, like online training modules and virtual classrooms, can democratise access to high-quality education, making it easier for students in smaller cities to gain skills without relocating.
The growth of India’s hospitality industry in metropolitan cities parallels the urgent need to address the talent shortage in smaller urban locations. By implementing collaborative strategies, focusing on skill development, and fostering industry-academia partnerships, educational institutions can play a key role in shaping a skilled workforce that can meet the evolving demands of the hospitality sector, ensuring sustainable growth.
A 2024 Tourism and Hospitality Skill Sector Council (THSC) report estimated that 5.7 million youth could be trained to meet an expected incremental labour demand of 3 million workers in the hospitality industry between 2025-2028.
A skilled workforce in tier-2 and tier-3 cities will benefit the hospitality industry, create employment opportunities, boost local economies, and encourage young people to build fulfilling careers in their hometowns. It is a win-win situation for all stakeholders.
The harmony between skill development and the growing demand of tier-2 and tier-3 cities provides the most promising picture for the evolving hospitality industry. While there is opportunity in abundance, harnessing the desired skill sets can open an array of opportunities for students wanting to write a brand-new chapter in the hospitality industry.
(The author is a chef and principal of a hotel administration college)