Abstract
Hotels require flexibility in their labour supply to match fluctuations in consumer demand. In non‐union circumstances managers take a neo‐classical approach, applying numerical and financial flexibility. What happens when collective bargaining is involved? An analysis of collective agreements from six countries shows that the economic impressions are institutionalized by agreement. In this way unionized hotels operate in the same way as non‐unionized hotels but with formalized rules. Assesses the prospects for functional flexibility.