I think there is the other side to why hotels are unable to raise wages and therefore are unable to raise prices.
With the introduction of services like Airbnb, the increase in supply of accomodation means that it is very much a consumers market where accomodation is almost indistinguishable is competing purely on price.
This is combined with the fact that the opportunity cost of owning a property for the purpose of short term let is very high. Each night your property is vacant you are unable to resell that night in the future (unless you are doc from back to the future).
I think this all leads to a situation were there is very little a hotel can do to raise wages: raise wages and raise prices then consumers will pick the cheapest practically identical accomodation near by.
With the introduction of services like Airbnb, the increase in supply of accomodation means that it is very much a consumers market where accomodation is almost indistinguishable is competing purely on price.
This is combined with the fact that the opportunity cost of owning a property for the purpose of short term let is very high. Each night your property is vacant you are unable to resell that night in the future (unless you are doc from back to the future).
I think this all leads to a situation were there is very little a hotel can do to raise wages: raise wages and raise prices then consumers will pick the cheapest practically identical accomodation near by.