Payroll differences between hotels in the world

Financial operating differences among the different regions become apparent when the rooms department expense percentage is compared. India has the lowest at 10.4% and Europe is the highest at 30%. China, South America and the U.S. are similar at around 22%. India's extremely low labor cost is the primary reason why the rooms department expense is so low. Indian hotels appear overstaffed, and usually provide a high level of service. However, wages are extremely low there, which results in a highly profitable department. Europe's labor costs are very high. Unions, government regulations, vacations and benefits, high cost of health care and social security contribute to staffing costs and a high rooms department expense.

Lower payroll and better service seems like the mantra to be a profitable enterprise in the hotel industry. Ever thought about investing in India?