Hospitality and retail managers: skills opportunities and challenges (2023 update)

Summary

The tourism and retail industries are important contributors to the European economy. Taken together they accounted for more than 13 per cent of gross value added in the EU economy in 2021. In the same year, hospitality and retail managers, who mainly work in these two sectors, account for around 1 per cent of the overall employment in the EU. 
Hospitality and retail managers fulfil various roles in planning, organising and directing the operations of establishments, which provide accommodation, hospitality, retail and other services. They organise and supervise the range and mix of products, stock levels and service standards offered in these establishments. Jobs within this group include accommodation, rooms division, restaurant, department store, shop, supermarket, sports facilities, and travel agencies managers.

Key facts

• Around 2.5 million people were employed as hospitality and retail managers in 2022, which accounts for 1 per cent of the total EU employment in 2022. 
• Between 2012 and 2022 overall employment of hospitality and retail managers increased by 3 per cent Over the same period, employment across all occupations in the EU increased by 8 per cent.
• Employment in the occupation decreased by more than 100 thousand workers between 2012 and 2019.  
• Between 2019 and 2020, when the EU experienced economic lockdowns, close to 30 thousand additional hospitality and retail managers jobs were lost. Employment fully recovered in the following year, and by the end of 2022, it was almost 180 thousand workers above the pre-Covid (2019) level.
• Most of the hospitality and retail managers - 72 per cent in 2021 - are employed in the wholesale and retail trade and in the accommodation and food service activities sectors. In 2021, they accounted for 10 per cent of the overall employment in the accommodation and food service activities sector.
• Nearly half of hospitality and retail managers have obtained a qualification level of ISCED 3 and 4 in 2021, equivalent to upper secondary and post-secondary non-tertiary education. More highly qualified hospitality and retail managers are expected to be employed by 2035.
• Over half of the hospitality and retail managers are men (i.e., 60 per cent in 2021) 
• The employment of hospitality and retail managers is expected to decline by one tenth between 2022 and 2035. Over the same period, overall employment is projected to increase by 3 per cent. 
• By 2035 about 2.3 million people are projected to be working as hospitality and retail managers. This represents a loss of 240 thousand jobs compared with 2022. Although there will be a fall in the overall number of people employed as hospitality and retail managers, there will be a large number of hospitality and retail managers jobs to be filled over the same period. This is because an estimated 1.4 million people are expected to leave the occupation mainly due to retirement. This means that an estimated 1.2 million (also including the expected job loss) job openings will need to be filled between 2022 and 2035. 
• The take-up of new technologies - including digital tools in hospitality and e-commerce that blends physical and digital stores in retail - will drive changes in the hospitality and retail managers’ skills required in the future. These managers will also need to cope with worker shortages in their respective sectors and adapt to recruiting a new generation of workers with different demands and expectations compared to the previous ones.
   

Employment and job demand

Employment trends for hospitality and retail managers were similar to all manager jobs in the past decade. Their employment was, however, declining already since 2019, so the Covid-19 induced drop was smaller than for all managerial jobs, and subsequent employment growth was similar. 

Figure 1: Year-to-year employment change for hospitality and retail managers (2013-2022)

Source: European Labour Force Survey. Employed persons by detailed occupation (ISCO-08 two digit level) [LFSA_EGAI2D__custom_7778289]. Own calculations.

More than a third of hospitality and retail managers (37 per cent) are engaged as retail and wholesale trade managers in 2021. People employed in these jobs are responsible for, among others, budgeting, staffing and strategic and operational direction of shops. They are those that determine the product mix, stock levels and service standards in shops and other retail facilities, formulating and implementing purchasing and marketing policies, and setting prices.

About one third (35 per cent) of hospitality and retail managers are engaged as hotel and restaurant managers. These are workers who plan, organise and direct the operations in food and accommodation provision and other hospitality services business. They oversee the booking, reception, and rooms service in hotels; they organise sports and entertainment activities and they engage in miscellaneous other supervisory activities in hotels and restaurants. 

26 per cent of hospitality and retail managers are engaged as other services managers, who organise and control the operations of establishments that provide sporting, cultural, recreational, travel, customer contact and other amenity services. Among other tasks, they supervise the maintenance of such facilities, incorporate latest trends and developments relevant to the services provided, and make sure that resources are used efficiently.

Between 2016 and 2021 the share of employment accounted for by these three occupations has registered slight changes, as shown in Figure 2: growth of other services managers and decline in other two categories. 

Figure 2: Employment in hospitality and retail manager jobs (in %)

Source: European Labour Force Survey. Microdata. Own calculations.

In OJAs, vacancies for retail and wholesale managers dominate, likely because accommodation and food and arts and entertainment (which predominantly employ the other two categories in this occupation) are less covered by the OJA data. 

For more details on skills demand and job openings for this occupation,  please access the Cedefop’s Skills OVATE tool.

Figure 3: Online job advertisements for hospitality and retail managers (2022, in %)

Source: Skills in Online Job Advertisements indicator based on Cedefop’s Skills OVATE. Own calculations. Note: Online job advertisements are by definition not equivalent to job vacancies. See Beręsewicz (2021) or Napierala et al. (2022).

Most hospitality and retail managers are employed within two economic sectors, namely wholesale and retail trade and the accommodation and food service activities sectors. In 2021, almost three quarters of hospitality and retail managers were employed in these two sectors. (see Figure 4). The arts, entertainment, recreation, and other service activities sector is another sector with a significant number of hospitality and retail managers, accounting for 7 per cent of their employment in 2016, and almost doubling its share to 13 per cent in 2021.  

Figure 4: The top sectors employing hospitality and retail managers (in %)

Source: European Labour Force Survey. Microdata. Own calculations.

As regards the share of hospitality and retail managers within sectoral employment, these workers form a significant portion of the workforce in the accommodation and food service activities sector. In 2021, hospitality and retail managers constituted the fourth largest occupation within this sector, accounting for 10 per cent of its employment.

In 2021, Ireland, Estonia and Portugal had the highest employment share of hospitality and retail managers (Figure 5). 

Figure 5: Hospitality and retail managers as a share of overall country employment (2021, in%)

Source: European Labour Force Survey Microdata. Own calculations.
Note: Data for CY, EE, IS, LV and LU have lower reliability because of small sample size.
LFS data for MT are not available.

Most of the workforce is comprised of men. In 2021, male employment accounted for 60 per cent of employment, compared to 54 per cent across all occupations.

More hospitality and retail managers are aged over 50 years old compared with the average across all occupations, but not markedly so (Figure 6). In 2021, the share of hospitality and retail managers aged 50 years or more had reached one third, while this share across all occupations was 28 per cent.

Figure 6: Hospitality and retail managers workforce by age (in %)

Source: European Labour Force Survey. Microdata. Own calculations.

Share of newly hired workers is much lower amongst hospitality and retail managers compared to the overall employment (see Figure 7). Given the nature of their jobs, they tend to have more part time than temporary employment contracts.

Figure 7: Contract and hiring trends for hospitality and retail managers (in %)

Source: European Labour Force Survey. Microdata. Own calculations.
 

Skill needs and future trends

Interpersonal skills are highly needed to perform hospitality and retail managers’ jobs. Because of a number of small and micro enterprises, hospitality and retail managers have to do a wider range of tasks than typical managers – it can be seen on a relatively high share of workers reporting lifting heavy loads. On the other hand, their digital skill needs are more or less average, although almost every worker reported the use of digital device for work. 

Digitalisation and major changes, despite the Covid-19, seem to progress slowly in trade, accommodation and food sectors, as hospitality and retail managers report low upskilling needs, including digital upskilling needs, as compared to other occupations. 

Figure 8: Skills, training needs and job perception of hospitality and retail managers (in %)

Source: European Skills and Jobs Survey Microdata. Own calculations. 
Unless stated otherwise, it is a share of people reporting that a task/skill is part of their job.
*Always or often
** Share of workers reporting these needs to a great or moderate extent.

Cedefop’s Skills forecast provides a detailed view of the future demand for hospitality and retail managers. Overall, employment for hospitality and retail managers is expected to decrease by 10 per cent over the period 2022 to 2035. This means that, compared with 2022, there will be about 240 thousand less hospitality and retail manager jobs.

Future employment reductions are forecasted for most countries, but their level will vary among countries. Figure 9 compares the employment growth experienced over the relatively recent past to the one projected to take place in the future. Employment grew in the past decade, and it is expected to continue this trend in the next decade only in 5 countries. Ireland and Island are among those with highest past and expected future growths, while especially Greece and Latvia represent the opposite trend. 

Figure 9: Past and expected future trends of hospitality and retail managers 

Source: European Labour Force Survey. Microdata. Cedefop Skills Forecast.
Note: Data for CY, EE, IS, LV and LU have lower reliability because of small sample size. 
LFS data for MT are not available. 

New job creation or reduction is, however, not the main driver behind job demand. Most job openings are a result of people leaving them for other opportunities, or those leaving the labour market completely (retirements; parent leave, etc.). This replacement demand is quite substantial, and in the case of the hospitality and retail managers it is estimated at around 1.4 million, thus being about six times as much as the expected job loss (Figure 10).

Overall, when future job loss is added to the replacement demand, an estimated 1.2 million job openings for hospitality and retail managers will need to be filled between 2022 and 2035.

Figure 10: Future job openings for hospitality and retail managers (000s)

Source: Future job openings indicator based on the Cedefop Skills Forecast. Own calculations.

Nearly half of hospitality and retail managers (48 per cent) held medium-level qualifications in 2021 (i.e. at ISCED levels 3 or 4). This is projected to change somewhat by 2035. The share of workers with low levels of qualification (ISCED level 2 or lower) is projected to fall from 15 to 11 per cent, while the share of highly qualified workers (i.e., those qualified at ISCED level 5 and over) is projected to increase from 38 to 49 per cent.

Looking forward

Managers in hospitality and retail will have to continue to face skills transformation in their respective sectors, due to changes brought on by digitalisation, the green transition and demographic change. These structural developments have been accelerated by the impacts of Covid-19 pandemic and other recent disruptions in supply chains and energy markets. 

• Technological change and the digital transition forces hospitality and retail managers to adapt to the use of digital tools that assist their everyday work. This includes communicating with clients and personnel as well as running facilities with an increasing online presence. According to sectoral reports, adopting digital solutions can also aid managers to cope with staff shortages emerging recently in the retail and hospitality sectors. Digital tools can improve efficiency in the management of human resources finance, supply chain and marketing, through e.g., real time data management (see for example all-in-one digital restaurant management solutions) or digital communications for customer service requests. Robotics and service automation technologies (such as self-service technologies) gradually revolutionise operations in the tourism industry, while autonomous stores have the potential to change retail sector by personalising customer service experiences. At the same time, the use of AI by the management has the potential of redesigning the work processes and structures at hospitality establishments.
• The boom in e-commerce in the last decade has changed everyday operations in the retail and wholesale industry. According to Eurostat data, more than 70 per cent of Europeans use the internet for purchasing goods and services, with retail goods having the lion’s share in these purchases. E-commerce is expected to drive 90 per cent of the growth in the sector, which implies significant changes to the logistics network, human resource management, and marketing in retail (McKinsey, 2022). Marketing strategies will need to adapt to clients having access to a broader range of products, comparing prices and sharing their opinions and experiences online. Increased e-presence also raises cybersecurity threats, especially when it comes to purchasing goods or services (such as bookings in hotels) online. According to a recent Eurobarometer survey about one third of European SMEs experienced cybercrime in 2021. Managers need to understand the nature of such threats and take necessary precautions to protect their products and clients. This involves having basic competences on cybersecurity principles and being able to hire the right people.
• To recognise opportunities in new technologies, hospitality managers need a solid understanding of digital tools like human resources management or personalised service delivery in predicting customer demands (Ruel & Njoku, 2020). The same is the case for retail managers (McKinsey, 2022): they will need digital competences to be able to operate across digital marketplaces and the material realities of retail. Blending digital and physical stores also prompts greater personalisation of retail experiences, which marks the importance of soft communication and adaptation skills for retail managers.
• Technological developments also serve to accomplish sustainability targets such as those set by the Commission’s European Green Deal. The European Agenda for Tourism 2030 stresses the importance of promoting a sustainable, innovative, and resilient tourism ecosystem. Green tourism involves promoting local tourism instead of long travel, longer-stays, innovative business models and increased public-private partnerships (OECD, 2022). A report by the Next Tourism Generation Alliance lists competence needs related to sustainability in hospitality such as promoting sustainable forms of transport and environmentally friendly activities and products, and managing waste, sewage, recycling and composting activities. Overall supervision in such activities falls within hospitality managers’ jurisdiction. Likewise, retail managers will have to take into consideration the further implementation of sustainable strategies in their industries.
• Over the coming years, hospitality and retail managers will need to consider population ageing in Europe, which makes addressing the growing staff shortages in their industries more difficult.  Ageing populations affect both human resource and marketing strategies in hospitality and retail: managers will need to employ alternative strategies to recruit and retain workers, while also adapting to changes in customers’ preferences and increased interaction with the elderly. Adapting to age-friendly tourism not only requires communication skills but also overcoming technical barriers such as wheelchair accessibility and other amenities in hotels, and the design of senior-oriented travel packages.
• Hospitality and retail managers will need to supervise a new generation of workers with different demands and expectations. Generation Z has a different set of expectations and aspirations for their careers and work-life balance: they are more inclined to seek flexible work and expect managers to be open to listening and implementing their ideas. They also value the blending of their work and personal lives. Managers need to deal with increased demands for flexibility and work-life-balance. Generation Z has a set of preconceived attitudes towards working in the hospitality industry. On the positive side, managers should work towards assuring interesting, fulfilling jobs with possible travel opportunities. While this generation perceives the generally low levels of pay as a difficulty, this is not a main concern for them as they equally value job satisfaction and career prospects (Goh & Lee, 2018). Hospitality trade unions recommend improving working conditions and pay, ensuring regular and predictable working time, and enabling a decent work-life balance as some of the main strategies to address staff shortages in hospitality (cooks are among the occupations mentioned most frequently by EU countries as being in shortage according to a recent European Labour Authority report).
• Business closures and travel halt during the pandemic affected retail and hospitality sectors considerably. In retail, businesses operating (also) through online platforms fared better, and this led to a post-pandemic boom in online retailing. Adaptability (e.g., extending to off-premises orders in restaurants and selling gift cards) was key to managing retail facilities. The same is true for hospitality facilities: Once hotels were open again, managers had to quickly come up with and implement strong contingency plans and manage human resource schedules to avoid or accommodate personnel infections. Several of these measures are still in place. The hospitality sector will need to adapt to the post-pandemic reality and develop new methods of attracting customers and doing business. Hospitality managers’ role in adapting to this reality and redefining customer experience and meeting demands for cleaner spaces will be critical.

Equipping retail and hospitality managers with new skills is important to facilitate management of retail businesses and hotels in a highly competitive and digitalised environment. Education of these managers depends equally upon vocational and higher education. According to Cedefop, in 2019 and 2020, 49 per cent of hospitality and retail managers aged 15-34 reported possession of a vocational qualification. Higher education institutions offer training in theory and practice, which equips future hospitality and retail managers with a set of transferrable skills necessary to adapt both to structural developments and a changing workforce (see box below).

• In terms of Initial Vocational Education and Training, apprenticeships can be an effective means to equip young people with the necessary skills to manage hospitality and retail facilities. There is now much evidence demonstrating their effectiveness in equipping people with the skills required in the labour market (cf. Cedefop’s research on the effective delivery of apprenticeships). However, apprenticeships in the retail and hospitality sectors appear to be among those with the lowest quality (Cedefop et al., 2021, based on a study conducted in by the German Trade Union Confederation). Most firms in these sectors are SMEs or micro firms that cannot afford a high-quality learning environment. 
• The European Alliance for Apprenticeships provides support to countries and sectors looking to improve and expand the provision of apprenticeships, including also in the hospitality sector. In late November 2022, under the Commission’s support, retail employers and trade union associations Eurocommerce and Uni Europa initiated a large-scale skills partnership for the retail industrial ecosystem, which aims to enable workers and businesses to acquire the skills necessary for the digital and green transitions.
• When it comes to continuous education and training, retail and hospitality managers can benefit from re- and upskilling opportunities that cover various emerging skill needs. Erasmus+ projects have been engaged in developing training courses related to, among others, sustainability, digitisation and population ageing:
• The InnoNE (Innovationsprojekte und Innovationskompetenz für nachhaltige Entwicklung, innovation projects and competence for sustainable development) project was involved in developing sustainability-oriented training units for small and medium-sized enterprises in retail trade (Cedefop and OECD, 2022), while the RETAIL project targeted small retailers and youth looking for future career opportunities. Its outputs included a “retail entrepreneurs training package” addressed to experienced entrepreneurs in the retail sector.
• The AGE Platform Europe has recently joined an Erasmus+ programme called “Europe for Seniors (EUROSEN)”, an attempt to the foster the active life of the senior citizens, by involving them in touristic initiatives both as travellers and as hosts of the visiting guests. One of the main outcomes of this project will be the development of a novel "Senior Tourism Quality Certification" programme.

How to cite this publication:

Cedefop (2023). Hospitality and retail managers: skills opportunities and challenges. Skills intelligence data insight.

Further reading

Beręsewicz, M. and Pater, R. (2021). Inferring job vacancies from online job advertisements, Luxembourg: Publications Office, 2021. https://ec.europa.eu/eurostat/web/products-statistical-working-papers/-/ks-tc-20-008

Bilsen, V., Ledoux, J. (2022). ‘The EU retail ecosystem of the future – a vision for 2040: Sub-task 3.2: Stakeholder survey results’, Foresight on Demand consortium. July 26th, 2022

Cedefop and OECD (2022). Apprenticeships for greener economies and societies. Luxembourg: Publications Office of the European Union. Cedefop reference series; No 122. http://data.europa.eu/doi/10.2801/628930.

Cedefop (2023). Skills in transition: the way to 2035. Luxembourg: Publications Office. http://data.europa.eu/doi/10.2801/438491

Cedefop et al. (2021). Apprenticeship governance and in-company training: where labour market and education meet: Cedefop community of apprenticeship experts: short papers. Luxembourg: Publications Office of the European Union. Cedefop working paper; No 3. http://data.europa.eu/doi/10.2801/065622.

EHL Insights. Managing the talent gap: Sparking passion for hospitality in Gen Z.

European Commission (2022). Transition Pathway for Tourism, Publications Office of the European Union: Luxembourg.

European Council (2022). Council conclusions on ‘European Agenda for Tourism 2030’, published 1 December 2022

European Labour Authority (2021). Report on labour shortages and surpluses.

EFFAT (European Federation of Food, Agriculture and Tourism Trade Unions) 2022. ‘Position Paper: Fight labour shortages in hospitality-tourism by improving the attractiveness of jobs 2022’, effat.org, Published 14 June 2022

ESSEC. Certified Professional Programme in Digital Transformation

Eurostat. ‘Population structure and ageing’, in Eurostat: Statistics Explained, February 2023.

Goh, E. & Lee, C. (2018). ‘A workforce to be reckoned with: The emerging pivotal Generation Z hospitality workforce’. International Journal of Hospitality Management, 73, 20-28.

Ivanov, S. (2019). ‘Ultimate transformation: How will robots, artificial intelligence and service automation disrupt the tourism and hospitality industries’.Next Tourism Generation Alliance blog article, October 28th, 2019.

Luther, D. Blending the Online and Physical Store: Innovation Means Personalization. Oracle, September 22, 2022.

McKinsey (2022). ‘Transforming the EU retail and wholesale sector’. October 25th, 2022.

Napierala, J.; Kvetan, V. and Branka, J. (2022). Assessing the representativeness of online job advertisements. Luxembourg: Publications Office. Cedefop working paper, No 17. http://data.europa.eu/doi/10.2801/807500

Next Tourism Generation Alliance.  Sustainability and “green” skills in hospitality – how to make a sexy concept work? July 22, 2019.

Norris, C.L., Taylor Jr, S. and Taylor, D.C. (2021). Pivot! How the restaurant industry adapted during COVID-19 restrictions. International Hospitality Review, 35, 132-155. https://doi.org/10.1108/IHR-09-2020-0052

OECD (2022). ‘Tourism Trends and Policies 2022’, OECD Publishing: Paris.

Ruel, H. & Njoku, E. (2020). ‘AI redefining the hospitality industry’. Journal of Tourism Futures, 7, 53-66.

World Travel and Tourism Council (2022). 'Staff shortages’. August 2022.