Every guest has certain needs and expectations. Business travelers want certain amenities to make their travels comfortable while leisure guests are motivated by other amenities every traveler has one clear expectation – consistency with a brand. They expect consistency in quality, value and other aspects of their hotel stay.
According to an article on the Hotel News Resource website, getting the basics right while consistently improving your operations goes a long way in making sure guests are happy, satisfied and want to return.
You can spend a lot of time simply focusing on the basics, but you might inadvertently overlook other important aspects of managing a hotel business. Occupied rooms generate revenue, but represent only one slice of the revenue pie.
You might be surprised at the steady increase in overall revenue generated from better management of your purchasing. Better management does not mean changing suppliers often, even though other suppliers might promise lower prices from time to time.
Traditionally, an operator negotiated with suppliers in their local area, which limited their options; they could only leverage their buying powers so much. With new technology, you’re now able to use group purchasing organizations like Source1 Purchasing to get volume discounts and better prices from the manufacturer.
The relationships that group purchasing organizations have with manufacturers allow mid-market operators to secure pre-negotiated prices through the local supplier network, just like a larger organization would. This direct manufacturer relationship allows you access to a broad variety of product lines and brands, so you can repeatedly order high-quality products at a consistent price.
Operators can also consider alternatives to their products and services they buy as consumer trends change. A group purchasing organization can offer the operator insights and trends as well as stable purchasing solutions historically; the research into new ideas would be very time consumer for hoteliers.
Smaller and mid-market operators have traditionally used competitive bidding to find the products they need at the lowest price; they want to ensure they’re getting charged as little as possible. But this often causes them to spend hours doing research and changing suppliers. The result can have a long term impact of the quality and consistency of products and services, and importantly, distract operators from other important areas of the hotel operation.
Frequently changing suppliers can also increase the likelihood of losing quality products and consistency. But remember: Guests want consistency throughout their stay, especially business travelers. When that need is met, they view your hotel favorably and share their positive experience on social media sites. Happy guests also return.
More operators are joining buying groups to access savings but also expertise, access to industry trends, updates about new products, and renegotiated contracts that protect their operating costs from inflation.
Operators that are considering a group purchasing organization like Source1 should take a look at the top 25 products they use and see what kind of savings they could achieve by using strategic sourcing. Our strategic sourcing solutions can get you a better price while saving you time — no more shopping around for the best price each month. Source1 knows that every dollar matters and that you need the right products at the right price.
You no longer have to handle all the purchasing negotiations alone. A hotel purchasing group does more than provide access to lower prices. This type of program also reduces operating costs, ensures quality and, most importantly, provides you with the insights and resources of a partner with purchasing expertise.
Graphic designed using information from: Hotel News Resource