Earnings in hotels and other accommodations generally are much lower than the average for all industries. In 2002, average earnings for all nonsupervisory workers in this industry were $10.01 an hour, or $297 a week, compared with $14.95 an hour, or $506 a week, for workers throughout private industry. Many workers in this industry earn the Federal minimum wage of $5.15 an hour. Some States have laws that establish a higher minimum wage. Federal laws, however, allow employers to pay below the minimum wage when an employee is expected to receive tips.

Food and beverage service workers, as well as hosts and hostesses, maids and housekeeping cleaners, concierges, and baggage porters and bellhops, derive their earnings from a combination of hourly earnings and customer tips. Waiters and waitresses often derive the majority of their earnings from tips, which vary greatly depending on menu prices and the volume of customers served. Many employers also provide free meals and furnish uniforms. Food service personnel may receive extra pay for working at banquets and on other special occasions. In general, workers with the greatest skills, such as restaurant cooks, have the highest earnings, and workers who receive tips have the lowest.

Salaries of lodging managers are dependent upon the size and sales volume of the establishment and their specific duties and responsibilities. Managers may earn bonuses ranging up to 20 percent of their basic salary. In addition, they and their families may be furnished with lodging, meals, parking, laundry, and other services. Some hotels offer profit-sharing plans, tuition reimbursement, and other benefits to their employees.

About 8 percent of the workers in hotels and other accommodations are union members or are covered by union contracts, compared with 15 percent of workers in all industries combined.