The tourism industry works across borders, which creates its own challenges for businesses managing international workforces. With staff often distributed across multiple countries, guaranteeing fair and competitive compensation becomes increasingly complex. Here are five essential strategies to help tourism businesses effectively manage global pay structures.
1.Understand local salary benchmarks
Creating competitive compensation packages starts with good research into local salary standards. According to the Morning Advertiser, in 2024, 37 per cent of workers in the tourism and hospitality industry had a salary of £30,000 or less, while only 16 per cent had a salary of £60,000 or more. Tourism businesses should analyse how salaries vary across different roles and locations. For instance, tour guides in London usually have higher wages than those in smaller cities, while specialised positions like multilingual concierge staff or executive chefs often get premium compensation regardless of location.
2.Navigate currency conversions and cost of living adjustments
When compensating employees across different countries, fluctuating exchange rates and varying living costs create a few challenges. A salary that provides a comfortable lifestyle in one place might be insufficient in another. For this, it’s important to implement regular reviews of currency values and adjust compensation accordingly to maintain equitable purchasing power across your global team.
3.Ensure legal compliance with local employment laws
Each country maintains different employment regulations that tourism businesses must go through. Recent UK policy changes have significantly impacted operational costs in the hospitality sector, with the minimum wage increasing to £12.21 per hour for workers aged 21 and over as of April 2025. Non-compliance with local employment laws risks financial penalties and can damage your business reputation and employee relations. So, regularly consult with local legal experts to make sure your compensation practices meet all regional requirements.
4.Leverage salary comparison tools
You need reliable data to make good decisions about global compensation. For this, using global salary comparison calculators can help benchmark your compensation packages against industry standards across different regions and roles. These tools give you insights into competitive pay rates, allowing HR managers to make data-driven decisions that balance budget constraints with the need to attract quality talent.
5.Promote pay equity across regions
To build a united global team, you need to address pay disparities that can arise between employees in different locations. While some variation based on local conditions is necessary, excessive discrepancies can create tension and affect morale. Develop transparent compensation frameworks that explain how location factors into salary decisions. Regularly review and adjust your approach to address market fluctuations or internal policy changes, making sure all team members feel valued regardless of their location.
When you incorporate these strategies, your tourism business can develop compensation practices that attract top talent globally while maintaining operational efficiency and team cohesion—essential factors in an industry where exceptional service depends on engaged, fairly compensated staff.
