How can travel and hospitality companies manage their labor costs and, by extension, staffing levels during these volatile times? Oliver Wyman has developed an approach, the variable staffing model (VSM), directly tying employee staffing to business needs. This model has helped cut labor costs by 4 to 8 percent for clients during the downturn, and, importantly, done so without compromising on services that guests enjoy.
The recent recession and continuing uncertain recovery have hit travel and hospitality companies hard. Organizations have strived to reduce costs, including labor costs, without damaging their offering and customer experience.