The tourism industry is a major employer of women globally. Yet a significant gender pay gap persists, meaning the women who keep the industry running are not rewarded equally for their work.
Figures from the UNWTO show that women in tourism earn 14.7% less than men on average. While that’s lower than the 16.8% gap seen in the broader economy and we’ve seen some progress since our 2018 Sun, Sand and Ceilings report, the stats still signal widespread inequality.
We need a concerted effort in all corners of the industry to close the gap and end the structural barriers keeping it open. Here we unpack what those barriers are and the practices that can help break them down.
What is the Gender Pay Gap in Tourism?
Looking at the tourism gender pay gap figures reveals the stark differences in how men and women are compensated for their work across the industry.
In the UK, women in hospitality, travel and leisure face a 7.6% pay gap compared to 13.1% in the broader economy, according to PwC’s 2020 report. However, this figure hides deeper issues within specific sub-sectors.
Women in travel alone experience a 21.3% pay gap, which is significantly higher than the national average. This disparity is further compounded by the fact that men hold the majority of the highest-paying jobs.
Even when women reach executive positions, the gap doesn’t disappear. Women executives in tourism earned 38.45% less than their male counterparts in 2023. This signals that the problem runs through the entire hierarchy of the tourism industry.
We see similar figures on the global level. For example, women only represent 23% of the board members in the tourism and hospitality industry despite representing 61% and 53% of the respective sectors’ workforce.
Why Does Tourism’s Gender Pay Gap Exist?
When it comes to what’s behind this disparity in pay between men and women in tourism, deeply embedded structural inequalities and societal norms are at the root.
Occupational Segregation in Tourism
One major driver of the pay gap is occupational segregation. Women are often concentrated in lower-paying, customer-facing roles such as housekeeping or administrative work, while men dominate higher-paying roles in operations, finance and management. Our Sun, Sand and Ceilings report lays out how women are underrepresented in tourism and hospitality boardrooms, for example.
These divisions are hard to overcome because there are limited opportunities for women to transition between departments and advance into higher-paid positions.
Devaluation of Feminised Work
Roles that are traditionally seen as “women’s work,” like human resources and hospitality services, are often undervalued and underpaid. Even when women occupy senior positions, they tend to be in supportive functions rather than more lucrative revenue-generating roles.
Part-Time Contracts
Women in tourism are disproportionately likely to hold part-time positions, often having to choose part-time work to balance domestic responsibilities. Not only do these roles pay less given they cover fewer hours, they’re also less likely to lead to career advancement or salary increases, perpetuating the pay gap.
Discrimination and Unconscious Bias
Discrimination also plays a role. Unconscious bias in hiring and promotions often means that women are overlooked for high-paying roles, particularly those that involve long hours or high levels of responsibility. Companies may perceive women as less stable hires due to familial commitments such as child-rearing, assuming that men will stay longer in their positions.
The Impact of the Covid-19 Pandemic
The Covid-19 pandemic worsened the pay gap for women in tourism, as many women were in roles that were furloughed or eliminated during the crisis. The mean pay gap in the UK’s tourism sector increased from 7.4% to 9% during the 2020 to 2021 period.
This reflects a broader issue: women are more likely to be in precarious, lower-paying jobs that are vulnerable to economic shocks.
Routes to Closing Tourism’s Gender Pay Gap
While the challenges are significant, there are concrete steps that tourism businesses can take to address the gender pay gap. The path to pay equality requires commitment from leadership, transparency and targeted programmes. As more individual businesses take action in these areas, we’ll see industry-wide transformation.
Leadership Development Programmes
Tourism organisations need to break down barriers that prevent women advancing in their careers. Leadership development programmes incorporating mentorship, training and networking opportunities can accelerate change in this area. These create environments where women can receive advice and share experiences, giving them the support to overcome common challenges.
The Accor Group is one corporation where mentorship is making a difference for female employees. They’ve implemented training and mentoring programmes via their equality network Riise (that’s the same network behind our 2024 Gender Equality Champion of the Year Award-winning Embrace Program).
These efforts are in keeping with their targets regarding women in leadership, which help keep them accountable.
Pay Transparency and Reporting
When it comes to accountability in closing the gap, transparency in pay reporting is also crucial. It’s only with openly reported pay data that companies can be held accountable for making progress. It also makes it easier to identify disparities and address them systematically.
Flexible Work Policies
Another way to close the gender pay gap in tourism is by adopting flexible work policies. Offering more adaptable work hours and environments can help keep women in the workforce, particularly those with caregiving responsibilities. Embedding flexible work into policy for the whole team also helps normalise the sharing of caregiving responsibilities, making it easier for men to take on their fair share.
Educational and Training Opportunities
Providing equal access to education, training and career development opportunities at every level is also essential. This can help tackle occupational segregation, supporting women to move into traditionally male-dominated roles and departments.
As well as being a way to upskill the women in your team, training can be used to educate the whole workforce on how to create more equitable working environments. For instance, 2023 Gender Equality Champion of the Year Award winner Travel Excellence delivers training on topics like work-life balance, co-responsibility at home, and how to be a protagonist in the creation of a gender equal society.
Gender awareness training like this can empower employees and leadership to recognise bias and advocate for changes that close the gap.
Why Closing the Gap is Good for Business
There is, of course, a moral imperative to closing the gender pay gap. Women in tourism are entitled to the same salary and career development opportunities as their male counterparts.
But beyond fairness, it’s also simply good for business. Studies show that companies with more diverse leadership teams perform better financially and are more innovative. Gender equality fosters better decision-making and increases employee retention.
According to an ILO Survey, companies with inclusive business culture and policies are more likely to show increased profitability and productivity, attract and retain valuable talent, and be more creative, innovative and open. Overall, businesses who are more gender balanced tend to have better business outcomes by 20% than their counterparts.
So, by investing in women and creating a more inclusive work environment, tourism businesses can improve their bottom line. All this adds up to a more resilient industry that’s thriving sustainably.
If you want personalised advice on how your tourism business can close its gender pay gap, speak to us about a gender audit. Our audits help you understand the barriers present within your organisation, as well as the systems, policy, processes and organisational culture changes that can help remove them.
