The sun is shining and we’re feeling optimistic about the future of overnight stays. We’re not the only ones. A recent CBRE report forecasts a “stronger than predicted” summer travel season. Recent data show, “…RevPAR to reach 2019 nominal levels by Q3 2022 under CBRE’s base case scenario, rather than in Q3 2023, as previously forecasted.” 1
Your Avendra team is ready to help you greet increased stays and exceed guests’ expectations in every way. When it comes to your guest rooms, we have consistently found supplies to meet demand — despite the supply chain challenges — and have developed creative solutions for the future.
One area we are especially excited about right now is textiles. In a recent webinar, Avendra’s sourcing expert, Jeffrey Simmons, shared that all textile areas (washcloths, terry, sheeting, fill products and top of bed) should be close to full recovery soon. He suggests building inventory in anticipation of busy spring, summer, and fall season:
- Raise your PAR levels
- Get your orders in the system now
- Work with your distribution representatives to help plan those orders and delivery schedules.
Cotton and labor are significant cost drivers in the textile market, which have climbed significantly in recent months (cotton has almost doubled from its historic price). Despite the increases, Avendra has helped our clients keep cost increases below market levels. Our broad and deep network of trusted suppliers has allowed our clients to maintain a competitive advantage by mitigating some of the inflation in the hospitality industry.
Chip McIntyre, SVP of Strategic Sourcing and Procurement at the Avendra Group, reiterated Avendra’s core mission: “We remain passionate about keeping price increases low, but our priority is always product supply assurance.”
Room amenities remain a challenge, but Avendra’s supply experts are focused on helping our clients develop tactical daily and weekly management plans to ensure product is always available. Despite some easing of the global supply chain crunch, inflation remains high. The sourcing specialists at Avendra are helping our clients keep costs in check through:
- Proactive contract management
- Rationalizing all pricing models
- Working with Avendra’s suppliers to mitigate cost increases
Avendra’s active management has delivered supply availability options for our clients. We also ensure Avendra clients are prioritized with our manufacturers and distributors. Our sourcing experts work closely with manufacturers and distributors to facilitate the availability of brand-specific products and acceptable substitutions.
All indicators point to brighter days ahead for the hospitality industry. Avendra helps ensure our clients can always meet and exceed guest expectations by providing responsible, innovative sourcing solutions – rain or shine.
Hear more from Jeffrey Simmons in our recent Rooms Update video.
1 “Hotel Business” March 18, 2022 https://hotelbusiness.com/cbre-forecasts-continued-hotel-recovery-in-22/?utm_source=newsletter&utm_medium=email&oly_enc_id=8131J4777801C9S