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TO GIG OR NOT TO GIG… THAT IS THE PRESSURE ON OUR INDUSTRY!

ITPS did a study for a company following the Covid plague of 2020. The company wanted to know where all the seasonal workers went, and why they did not come back to theme parks or the hospitality industry to work in general.
What we found in this early study of this topic was the GIG economy was on the rise. What is the GIG economy, we asked? We found that the GIG economy was a rapidly growing labor market where people wanted to be their own bosses. They wanted to earn income by providing services, goods, or on-demand work as they deemed fit. They wanted to create their own schedules, have time off at holidays, and not always work weekends.

We quickly learned that a GIG program can work in ways that can include a wide variety of positions, such as driving for a ride-share service, delivering food (door to door), or in-home tutoring.

In recent years, the rise of GIG work has profoundly shaped the labor dynamics within the theme park, restaurant, and hospitality sectors. As app-based GIG platforms have gained popularity, traditional employers in these industries are noticing the impact that GIG work exerts on their labor pool.

For theme parks, which have long relied on seasonal and part-time workers, GIG work presents a challenge. Many workers consider GIG jobs as attractive alternatives to their former employment. GIG work often offers flexible hours, the chance to earn comparable or increased wages, and a large degree of independence that theme parks can only struggle to match with their fixed schedules and high customer service demands. The impact has been negative for theme parks, which now face a more competitive landscape in attracting and retaining employees, particularly with the everchanging school schedules. We are seeing this shortage currently during October’s heavily attended Halloween programs.

Correspondingly, the restaurant and hospitality industries have felt the shift as GIG work becomes more appealing to that workforce. Workers in the hospitality industry have often balanced multiple jobs to make ends meet. With more and more GIG platforms available to young workers, they now have a direct, flexible option that does not require the same customer-facing pressure, or rigid hours. This shift has resulted in high turnover rates for restaurants and hotels, who have found it harder to maintain a stable workforce. Additionally, because GIG work attracts people who might have filled traditional hospitality roles, there is a growing labor shortage, especially for entry-level and hourly jobs. This shortage has forced some businesses to increase wages (as we have seen), increase benefits, and offer extreme hiring incentives. Ultimately, this has raised hourly labor costs and increased our operating labor costs to the highest levels ever experienced.

The appeal of GIG work has created challenges for both the theme park industry and hospitality industry, pushing many businesses to rethink hiring practices. The question remains, in the long term, will this shift in the workforce benefit employees? As employers in the theme park, restaurant, and hospitality industries adapt, we are seeing more competitive wages paid, flexible schedules introduced, and improved work-life balance programs established to retain staff. Furthermore, with the growing prevalence of technology-driven GIG platforms on the rise, these industries may start integrating GIG-like positions for temporary or seasonal work, allowing them to meet fluctuating demand without long-term commitments. This is feasible.

The GIG economy has pressured the hospitality industry hiring workforce. Whether we like it or not, it is driving innovation in employment practices, some good, some bad. For sure, the GIG work trend is reshaping hospitality employment, hopefully leading to more positive adaptive worker policies across all sectors. What are your plans to address the growing GIG workforce impacts?

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