August 2, 2011

With the global economy slowly normalizing, optimism within the hotel industry is also beginning to return. A new report from MarketResearch.com suggests many hospitality professionals worldwide are now looking to implement initiatives that will position themselves for greater success in the next year.

The top two objectives for hotel owners in 2011 is to both improve operation efficiency and expand in their current market. As the research company notes, this move toward expansion marks a radical change from last year, when many companies were focusing more on survival, rather than growth.

"Respondents from the hotel industry predict that there will be either a significant increase in levels of consolidation or an increase in M&A activity over the next 12 months. Higher operating costs, rising competition, the need to increase geographical presence in key markets, business competence and pressure on bottom-line performances act as stimulus to industry consolidations," notes the report.

Additionally, MarketResearch.com observed the hotel procurement budgets worldwide are expected to grow significantly over the next year. With many companies looking to either open new locations or expand current hotels, a solid procurement program will help them ensure their properties are stocked. North American companies are expected to spend $23.9 million on average on procurement.

With many hotels looking to devote more money to their procurement solutions, suppliers need to ensure they are providing value to clients. According to the report, the key is customer service - hotel managers want to be able to have good relationships with their suppliers.

MarketResearch.com polled more than 306 industry executives, with nearly half of all respondents occupying director or C-level positions at their respective companies.

Having a procurement solution in place can often directly translate to a better overall customer experience, leading to more sales and occupied rooms. By ensuring a hotel branch is adequately supplied, managers can ensure they are serving their guests in the best way possible. Whether owners need food and beverage or retail and gift shop products, Avendra has the procurement program to satisfy any need.