2. Literature Review
2.1. Understaffing in Hospitality Operations
Understaffing has emerged as one of the most persistent structural challenges in contemporary hospitality management, particularly in destinations characterized by seasonality, labor intensity, and strong dependence on service consistency. Hotels operate within an environment where employee availability directly affects operational continuity, guest satisfaction, and financial performance. Workforce shortages therefore represent not merely a human resource issue, but a strategic determinant of service quality and organizational sustainability.
Previous studies have consistently linked understaffing with increased workload, emotional exhaustion, burnout, and reduced organizational commitment among hospitality employees. Employee stress caused by excessive workloads negatively affects frontline performance, resulting in service inconsistency and lower customer satisfaction (Grobelna, 2021). Emotional exhaustion is particularly critical in hospitality because service encounters rely heavily on emotional labor and interpersonal interaction, making employee well-being directly relevant to guest experience.
Karatepe and Uludag (Karatepe & Uludag, 2007) further demonstrated that role stress and work overload significantly increase emotional exhaustion and turnover intentions among hotel employees, particularly in frontline service positions. Their findings suggest that persistent labor shortages create a cycle of dissatisfaction and employee withdrawal that further intensifies staffing instability.
Likewise, Kim, Leong, and Lee (W. G. Kim et al., 2005) found that employee satisfaction and organizational commitment are directly associated with service quality performance in hospitality organizations, reinforcing the strategic importance of workforce stability.
In highly seasonal tourism destinations such as Greece, where hotels experience intense concentration of demand within limited time periods, understaffing becomes especially severe and often leads to reactive operational decisions rather than strategic workforce planning.
Beyond the human resource and service quality implications, understaffing also generates significant pressures on hotel cost management structures. Hotels are characterized by high fixed costs, elevated indirect costs, and strong operational dependence on labor-intensive service delivery, making workforce instability a critical financial issue rather than solely an HR concern. Research on Greek hotel enterprises shows that hotels maintain a particularly high fixed-cost structure, while labor allocation and service delivery costs remain central to profitability and pricing decisions (Pavlatos & Paggios, 2009). When understaffing occurs, management is often forced to compensate through overtime payments, emergency recruitment, outsourcing, and short-term labor substitutions, all of which increase operational costs while simultaneously reducing efficiency. This creates a paradox in which hotels attempt to reduce labor shortages but end up intensifying cost pressures and weakening financial sustainability.
From a strategic accounting perspective, Garefalakis and collaborators (Garefalakis et al., 2026) emphasize that hospitality competitiveness increasingly depends on the integration of operational decision-making with financial reporting quality, sustainability management, and cost control mechanisms. Their work highlights that managerial decisions regarding staffing, training, and service delivery must be evaluated not only through immediate operational outcomes but also through their long-term impact on financial resilience and strategic performance. Similarly, Giannarakis’ research on corporate sustainability and performance evaluation supports the argument that cost efficiency should not be interpreted as simple expenditure reduction, but as the optimization of resource allocation that preserves service quality and organizational value creation (Giannarakis et al., 2023). In hospitality settings, aggressive labor cost minimization without strategic workforce planning may produce short-term accounting benefits but can ultimately damage service quality, brand reputation, and destination competitiveness. Therefore, understaffing should be understood as a cost management issue where financial efficiency and cultural authenticity must be balanced rather than treated as competing objectives.
2.2. Service Quality and Organizational Pressure
Service quality remains one of the most studied dimensions of hospitality competitiveness. However, service quality cannot be examined independently from the organizational conditions under which it is produced. High-quality service requires adequate staffing, consistent training, and sufficient emotional and physical resources among employees.
Research suggests that employee fatigue and occupational stress significantly reduce service responsiveness, attentiveness, and interpersonal quality during guest interactions. Additionally, (Grobelna, 2021) found that emotional exhaustion among hotel employees is strongly associated with lower service commitment and increased withdrawal behaviors.
This becomes particularly problematic in luxury and culturally branded tourism destinations where service expectations are not purely functional but experiential. Literature (Kandampully et al., 2015) argue that service quality in hospitality should be understood as an integrated process where employee engagement, emotional labor, and customer experience are inseparable.
Understaffing also forces management to adopt rapid recruitment strategies that prioritize immediate operational survival over recruitment quality. Such reactive hiring practices may temporarily fill vacant positions but often create longer-term issues related to performance inconsistency, insufficient onboarding, and weak organizational integration.
As a result, service quality deterioration should not be viewed solely as a customer satisfaction issue, but also as a signal of deeper structural imbalance within hospitality organizations.
2.3. Cultural Authenticity in Tourism Experiences
Authenticity is considered one of the foundational concepts in tourism studies and plays a central role in destination competitiveness, visitor satisfaction, and repeat visitation intentions. Early theoretical work by MacCannell (MacCannell, 1973) conceptualized authenticity as the perceived genuineness of tourism experiences, while Wang (Wang, 1999) expanded the discussion by introducing existential authenticity, emphasizing the emotional and subjective dimensions of tourist experiences.
In culturally rich destinations such as Greece, hospitality itself constitutes a form of tourism authenticity. Visitors often evaluate destinations not only through infrastructure or attractions, but also through the quality of interpersonal interactions with local service providers. Authentic hospitality therefore becomes part of destination branding and national tourism identity.
Moore, Buchmann, Månsson, and Fisher (Moore et al., 2021) argue that authenticity remains one of the most theoretically significant yet methodologically complex concepts in tourism research, particularly because it intersects with both destination marketing and visitor perception. Their work emphasizes that authenticity should not be treated as a static characteristic of destinations, but as a socially produced and relational experience.
Similarly, Ramkissoon and Uysal (Ramkissoon & Uysal, 2010) demonstrate that perceived authenticity positively influences satisfaction and loyalty, reinforcing its strategic value for long-term tourism competitiveness.
More recently, literature (Rosado-Pinto & Loureiro, 2023) shows that authenticity significantly enhances emotional engagement and memorable hospitality experiences in upscale hotels, confirming that authenticity operates not only at destination level but also within service encounters.
Thus, authenticity should not be understood solely as a heritage or attraction variable, but also as a service-delivery phenomenon shaped by employee behavior and organizational culture.
The importance of cultural authenticity becomes even stronger in hospitality contexts where the tourism experience is co-created through direct interaction between guests and service employees. Unlike cultural attractions that exist independently of service delivery, hotels function as “living spaces” where authenticity is continuously produced through communication style, emotional labor, behavioral norms, and the symbolic representation of local culture. In this sense, authenticity is not simply consumed by tourists; it is actively performed by employees during everyday service encounters. Researchers (Chhabra et al., 2003) argue that authenticity significantly shapes tourists’ perceived value of heritage and destination experiences, influencing both satisfaction and revisit intention. Their work highlights that tourists often evaluate destinations through subjective perceptions of genuineness rather than objective cultural preservation, making employee behavior a central mechanism in authenticity formation. In hospitality environments, this means that service delivery itself becomes part of the destination’s cultural product rather than a separate operational function.
Furthermore, Kolar and Zabkar (Kolar & Zabkar, 2010) emphasize that authenticity is strongly associated with emotional attachment, destination loyalty, and experiential memorability, particularly in culturally distinctive destinations. Their findings suggest that tourists are more likely to develop meaningful destination attachment when they perceive service interactions as sincere, culturally grounded, and symbolically representative of the host destination. This becomes particularly relevant for Greece, where hospitality is historically embedded in the concept of φιλοξενία (philoxenia) and where tourists often expect emotional warmth and interpersonal connection as part of the national tourism identity. When service delivery becomes standardized, rushed, or culturally detached due to understaffing and operational pressure, the visitor experience may lose precisely the symbolic value that differentiates Greek tourism from competing Mediterranean destinations. Therefore, cultural authenticity should be treated not only as a branding asset but as a strategic performance outcome directly linked to workforce quality, employee engagement, and organizational capacity for cultural transmission.
2.4. Multinational Workforces and Cultural Transmission
The increasing internationalization of hotel labor markets has created new opportunities and challenges for hospitality management. Foreign employees often play a crucial role in addressing labor shortages, particularly in destinations facing demographic decline or insufficient domestic labor supply.
However, the integration of multinational workforces raises important questions regarding communication quality, service alignment, and the preservation of local hospitality norms. Baum (Baum, 2015) emphasizes that hospitality labor markets are increasingly globalized, creating both operational flexibility and cultural management challenges.
Authentic hospitality depends not only on technical competence but also on the successful transmission of culturally embedded service values. Employees must communicate tacit social expectations, local customs, and symbolic elements of the destination experience. When cultural integration mechanisms are weak, hotels may succeed operationally while gradually weakening the experiential authenticity of the tourism product.
This issue is especially relevant in Greece, where the symbolic value of “Greek hospitality” is strongly associated with national identity and destination differentiation. The challenge is therefore not the presence of foreign employees itself, but the absence of structured cultural training, mentoring, and onboarding systems that enable cultural knowledge transfer.
In addition to cultural transmission, the issue of workforce composition in Greek hotels is closely connected to employees’ visible representation of hospitality and the way guests interpret service encounters. In tourism settings where hospitality is strongly associated with national identity, visitors often form implicit expectations regarding who delivers the service and how cultural authenticity is embodied during the interaction. Frontline employees function not only as service providers but also as symbolic representatives of the destination itself. Research in hospitality and service management suggests that customer evaluations are often influenced by perceived cultural proximity, language fluency, communication style, and the ability of employees to reproduce locally expected service behaviors (Pizam & Jeong, 1996); Reisinger & Turner, 2003). When these expectations are not met, tourists may perceive a reduction in authenticity even when objective service quality remains high. Chhabra, Healy, and Sills (Chhabra et al., 2003) further argue that tourists evaluate authenticity largely through subjective perceptions of genuineness rather than objective cultural preservation, making employee behavior a central mechanism in authenticity formation. This does not imply that foreign employees reduce service quality, but rather highlights the importance of perception management and cultural adaptation within service delivery systems. In the Greek tourism context, where interpersonal warmth and culturally embedded φιλοξενία form part of the destination brand, employee presentation becomes part of the authenticity experience itself.
Moreover, the preservation of authentic hospitality requires hotels to move beyond operational staffing solutions and adopt formal mechanisms of cultural socialization. Informal adaptation alone is rarely sufficient to transfer deeply embedded hospitality values, particularly in multinational work environments with high seasonal turnover. Structured onboarding programs, mentoring systems, intercultural coaching, and leadership involvement become essential tools for sustaining service consistency and cultural alignment. Baum (Baum, 2015) emphasizes that tourism organizations must shift from short-term labor replacement strategies toward long-term human capital development if they aim to preserve competitiveness and service quality. Similarly, researchers (Kusluvan et al., 2010) note that workforce development in hospitality requires strategic investment in training systems that support both technical competence and cultural adaptation. Reisinger and Turner (Reisinger & Turner, 2003) also highlight that intercultural communication competence is fundamental for service effectiveness in international tourism environments, particularly where guest expectations are culturally sensitive. The absence of institutionalized cultural training increases the risk that hospitality becomes standardized and transactional rather than relational and destination-specific. For Greece, this distinction is particularly important because the tourism product is not defined solely by accommodation quality, but by the emotional and symbolic value of the guest experience. Therefore, cultural integration should be treated as a strategic management function directly linked to destination sustainability and brand protection.
In this context, the preservation of hospitality authenticity requires organizational mechanisms that support both operational efficiency and cultural continuity.
2.5. Research Gap
Although substantial literature exists on understaffing, service quality, and tourism authenticity, these themes are rarely integrated within a single analytical framework. Most studies approach understaffing as an operational or HR problem, while authenticity is typically examined as a marketing or destination image construct.
Limited empirical research has examined how labor shortages directly affect the preservation of cultural authenticity within hotel operations. Existing hospitality research tends to focus either on employee well-being or on visitor perceptions, without examining how workforce shortages may function as a mechanism of cultural erosion within the service delivery system itself.
This gap is particularly important in destinations such as Greece, where hospitality experiences constitute an important component of destination differentiation and experiential value creation. The sustainability of authentic hospitality experiences depends not only on visitor perceptions but also on the organizational capacity to support culturally grounded service interactions.
The present study addresses this gap by examining how operational labor shortages may be associated with challenges in sustaining authentic hospitality delivery within hotel organizations.
In addition to the limited integration of understaffing and authenticity in hospitality research, there is also a notable absence of studies that examine cultural integrity from the perspective of employees rather than tourists. The majority of tourism authenticity research focuses on visitor perceptions, destination image, and customer satisfaction outcomes, treating authenticity primarily as a consumption experience. However, authentic hospitality is first produced internally—through employee practices, organizational culture, and daily service interactions—before it is perceived externally by guests. Frontline employees are the primary agents through which cultural values are translated into lived hospitality experiences, yet their perceptions regarding the preservation or erosion of these values remain significantly underexplored in empirical literature (S. Kim et al., 2019; Nguyen et al., 2023). Understanding how employees themselves interpret the relationship between staffing conditions and cultural authenticity provides a more operationally grounded perspective on destination sustainability and service quality management.
Furthermore, existing studies rarely investigate understaffing as a predictor of cultural erosion using quantitative explanatory models. Most previous research relies on descriptive discussions of labor shortages, employee burnout, or service dissatisfaction without testing whether specific understaffing dimensions—such as work stress, reactive hiring, or service quality decline—systematically predict perceived threats to cultural authenticity (Baum, 2015; Chhabra et al., 2003). This creates an important methodological gap, particularly for destinations like Greece where hospitality constitutes part of national tourism identity. By applying reliability analysis, non-parametric correlation testing, and multiple regression modeling, the present study moves beyond descriptive interpretation and offers empirical evidence regarding which operational pressures most strongly influence the preservation of authentic hospitality. In doing so, it contributes not only to tourism theory but also to practical hospitality management by identifying understaffing as a measurable strategic risk for destination competitiveness.
Based on the literature reviewed above, the present study addresses the following research questions:
RQ1: To what extent does understaffing in Greek hotels negatively affect service quality?
This question emerges from literature linking labor shortages with employee exhaustion, service inconsistency, and declining customer satisfaction (Grobelna, 2021; Karatepe & Uludag, 2007).
RQ2: Does service quality deterioration influence the ability of hotels to preserve authentic Greek hospitality?
This question connects service quality literature with authenticity theory, examining whether operational decline translates into cultural degradation (Moore et al., 2021; Ramkissoon & Uysal, 2010).
RQ3: To what extent do reactive hiring practices contribute to perceived threats to cultural integrity?
This question explores whether emergency recruitment decisions weaken organizational consistency and cultural alignment within hospitality delivery.
RQ4: Is authentic Greek hospitality perceived as dependent on cultural knowledge and cultural transmission within the workforce?
This question investigates whether employees view hospitality authenticity as a culturally transmitted practice rather than a purely technical service function.
RQ5: Which understaffing-related factors are the strongest predictors of threats to cultural integrity in Greek hotels?
This is the central regression-based research question of the study and directly addresses the primary research gap by integrating operational and cultural variables within a predictive framework.
2.5. Theoretical Framework: Service-Dominant Logic and Authentic Hospitality Co-Creation
This study is theoretically grounded in Service-Dominant Logic (SDL), which conceptualizes value not as something embedded in products or services themselves, but as something co-created through interactions among organizational actors, employees, and customers (Vargo & Lusch, 2004). Within hospitality contexts, value emerges primarily through experiential and relational exchanges rather than through tangible outputs alone. Hotels therefore function not merely as accommodation providers, but as environments in which employees and guests jointly co-create meaningful tourism experiences.
From an SDL perspective, hospitality employees are not simply operational labor units but active value co-creators whose interpersonal interactions shape customer perceptions, emotional engagement, and experiential authenticity. Service quality is therefore inseparable from employee participation, emotional labor, communication practices, and organizational capacity to sustain consistent relational experiences. This perspective is particularly relevant in culturally branded tourism destinations such as Greece, where hospitality itself constitutes a symbolic component of the tourism product.
The concept of authentic hospitality aligns closely with SDL because authenticity is not passively consumed by tourists but actively constructed during service encounters. Authenticity emerges through social interaction, emotional connection, cultural representation, and the successful transmission of locally embedded hospitality values. Consequently, the preservation of authentic Greek hospitality depends not only on physical infrastructure or destination branding, but also on the organizational capacity to support culturally meaningful service co-creation processes.
Within this framework, understaffing may be interpreted as a structural constraint that weakens organizational co-creation capacity. Labor shortages increase employee workload, emotional exhaustion, and operational instability, thereby reducing employees’ ability to sustain emotionally engaged and culturally grounded hospitality interactions. Similarly, reactive hiring practices and insufficient cultural onboarding may weaken the transmission of tacit hospitality knowledge that supports authentic service delivery.
SDL therefore provides an integrated theoretical lens that connects operational workforce conditions with cultural authenticity outcomes. Rather than treating understaffing solely as an HR management issue, the present study conceptualizes it as a factor that may reduce the organizational ability to co-create authentic hospitality experiences. This perspective shifts the analysis from a purely operational discussion toward a broader understanding of hospitality authenticity as an organizationally mediated and workforce-dependent process.
The study consequently extends hospitality authenticity literature by conceptualizing authenticity not only as a tourist perception construct, but also as an internally produced organizational outcome shaped by workforce stability, cultural transmission, and service co-creation capacity.