Hilton Hotels and Resorts' Business
Hilton Hotels and Resorts' business activities are based on the provision of services to people. Ceremonies play an important role in determining the demand for the services the company provides. Due to the fact that the business cycle of Hilton Hotels and Resorts is seasonal, the demand for their services keeps on changing throughout the year. For example, like to celebrate holidays, like New Year, Valentine's Day, etc. in a special way. . They, therefore, tend to book hotels more, including those owned by Hilton Hotels and Resorts. In such a way, the demand for the services provided by the company increases during holidays and celebrations. When there is an increase in the demand for the company's services, more employees and staff workers are required. The demand for labor force, therefore, increases. We may conclude that celebrations of national and popular holidays increase the demand for labor force in Hilton Hotels and Resorts.
Wages that are paid to employees influence the demand for labor force too. When the wages are lowered, the hotels are able to hire more people. However, high wages reduce demand for the labor force, considering that this business aims at minimizing costs. In such a way, a decline in the wage rate of employees leads to the increase in the demand for labor force in Hilton Hotels and Resorts.
If the prices for the services provided by Hilton Hotels and Resorts increase, the demand for labor force would increase as well. In this regard, it would mean that the productivity of the employees has increased. If the employer does not increase the wages paid to the employees, then it means that the employees would ask their trade union to help to satisfy their request. This is quite reasonable, so the company is strongly recommended to increase wage of employees, considering the fact that the employees will be aware of any increase in the price for services offered by the company.
To continue, if the government raises the minimum wage of the workers, this would affect the demand for labor too. Wages are costs that any business entity aims at minimizing. In such a way, a company facing the increase in wages rate imposed by the government's policy would seek to minimize the costs any possible way. It goes without saying that a company cannot operate if it does not generate reasonable profits. One of the actions that the company may take is reducing the number of employees. In addition, the company will also review the number of employees that it needs to hire. This trade demonstrates that when the minimum wage is raised the demand for labor force decreases.
The reason why the government intervenes in the labor market is to ensure that people get a reasonable compensation to support their daily living. It aims at eliminating exploitation of the employees. The action of the government is also aimed at ensuring that the compensation rate offered to employees is in accordance with the current economic situation in a country and factors such as inflation are taken into consideration. However, these moves affect the employers directly. They incur costs that need to be minimized. When the government intervenes, less people remain unemployed. Still, some people are left without a job.
The intervention by the government is not based on information. Many factors should be taken in consideration when determining the wages rate. It would be fair if the government could let the forces of demand and supply to determine the wages to be paid to the employees. The demand for labor force keeps changing considering that the services offered by Hilton Hotels and Resorts are seasonal. Government intervention in the hospitality market may lead to unfair treatment of the employers and many workers end up losing their jobs. To avoid such a negative impact on the economy, the government should never intervene in the hospitality market.