Key Takeaways for Hotel Operators:
Two people stand and discuss while looking at a tablet in a modern office. In the background, two others sit and talk.

The hospitality industry is entering a period where cost pressures, sourcing unpredictability, and supply chain volatility are shaping every purchasing decision. As operators work to protect margins and maintain consistency, AI‑enabled procurement is becoming a critical advantage.

In Hotel Management’s June 2026 issue, Eleanor Waddell—Vice President of Strategic Growth & Business Development at Avendra International—shares how intelligent procurement is helping hotels stay ahead of disruption, improve decision‑making, and strengthen ESG performance.

This feature comes as Avendra International celebrates 25 years of supporting the hospitality industry with data‑driven purchasing expertise and a trusted global supplier network.

Key Insights from the Article

“We're seeing cost pressure come from two directions right now. The first is around sourcing origins. A significant portion of what hospitality operations rely on, particularly seafood and produce, is imported, and current market dynamics have made pricing less predictable. The second is labor: culinary wages have risen, and the cost of skilled prep work, like butchering and portioning, is meaningful,” said Waddell.

Volatility Requires Proactive Procurement

“The pace of change is the central challenge. Supply chain volatility, ingredient availability, shifting sourcing conditions: these things are moving fast and our obligation is to stay ahead of them rather than react. The goal has always been getting the right product, at the right time, at the right cost, but today's environment requires considerably more work to deliver on that consistently,” added Waddell.

AI Is Transforming How Hotels Buy

“AI is redefining procurement in hospitality by shifting it from transactional execution to intelligent orchestration … Deidentified purchasing data lets AI identify patterns across price volatility, seasonal demand and savings opportunities that no single operator could see alone, turning that into practical guidance on what to buy, when and from whom,” said Waddell.

AI Supports Better Daily Decisions

She continued, “At the operational level, AI is embedded directly into the buying process. It guides them toward the right product, vendor, price and quantity across hundreds or thousands of SKUs, while enforcing standards and service levels across locations. When supply conditions change or disruptions emerge, AI can flag the issue early and recommend compliant substitutions before it impacts the guest experience or the kitchen.”

ESG Is Becoming a Competitive Differentiator

“For hospitality leaders, AI is transforming ESG reporting from a narrative into a competitive differentiator—integrating verifiable operational data with trusted third‑party assessments. As a result, ethical procurement is no longer a trade‑off against cost or service, but a value driver that strengthens brand trust, guest loyalty and long‑term resilience,” she noted.

Why This Matters for Hospitality Operators

Eleanor’s perspective highlights a clear shift: procurement is about intelligence, resilience, and strategic advantage. AI‑driven insights, stronger supplier alignment, and transparent ESG reporting are helping operators navigate uncertainty with confidence.

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FAQs

What is the most effective way to reduce labor shortages in hospitality?

The most effective way to reduce labor shortages is to optimize workflows—eliminating unnecessary steps, standardizing processes, and using technology or automation to simplify tasks. This reduces reliance on additional staffing while maintaining service levels.

How can hotels reduce labor costs without impacting guest experience?

Hotels can reduce labor costs by using smart equipment, automating repetitive tasks, and shifting work to off-peak hours. These changes improve efficiency and consistency while allowing staff to focus on guest-facing interactions.

What role does technology play in hospitality labor management?

Technology, especially sensor-based (IoT) solutions, helps monitor operations in real time, prevent equipment failures, optimize cleaning schedules, and reduce manual work. This improves productivity and lowers operational costs.