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How Procurement Is Becoming a Revenue Strategy in Hospitality

Key Takeaways

Hotels are prioritizing business outcomes over purchase price. Procurement decisions are increasingly evaluated based on their impact on revenue, operational efficiency, and guest satisfaction.
The best investments create value across multiple performance metrics. Technologies and services that improve operations while supporting revenue growth and the guest experience deliver the strongest returns.
Strategic procurement can be a competitive advantage. As a trusted procurement partner and strategic advisor to hospitality organizations, Avendra International helps hospitality organizations take a total-value approach to purchasing decisions that support long-term profitability and business goals.

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As hotels look for new ways to improve profitability, procurement is increasingly being evaluated by the value it creates, rather than the savings it delivers.

That shift is explored in Hotel Management's latest guide, Smarter Purchasing, Stronger Profits: Top Purchasing Tips for 2027, which features insights from Eleanor Waddell, Vice President of Strategic Growth & Business Development at Avendra International, in the article "How Procurement Is Becoming a Revenue Strategy."

The article examines how hotel owners and operators are moving beyond upfront costs and evaluating investments based on their ability to improve operational efficiency, support the guest experience, generate revenue opportunities, and deliver measurable returns over time.

For more than 25 years, Avendra International has served as a trusted procurement partner and strategic advisor to hospitality organizations, helping clients evaluate solutions through a total-value lens that aligns purchasing decisions with broader business goals. This strategic approach enables organizations to turn procurement into a driver of profitability, efficiency, and guest satisfaction.

In the article, Waddell highlights the importance of solutions that deliver benefits across multiple areas of performance.

"What makes a solution compelling is that it delivers value across multiple performance metrics simultaneously rather than solving a single operational challenge."

Technologies such as mobile check-in and digital key access illustrate that approach. In addition to streamlining front desk operations and reducing wait times, these platforms can support revenue generation through room upgrades, late checkout offers, parking, and other premium services.

The same principle applies behind the scenes. From utility-saving equipment to technologies that optimize labor and improve productivity, hotels are increasingly investing in solutions that create value across the operation rather than addressing a single need.

As Waddell notes, the industry's focus is shifting from purchase price to business impact, positioning procurement as a driver of profitability, efficiency, and guest satisfaction. As a strategic advisor to hospitality organizations, Avendra International helps clients navigate this shift by identifying solutions that create measurable value across their operations.

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FAQs

What is meant by procurement as a revenue strategy?

Procurement as a revenue strategy means evaluating purchases not only for cost savings, but also for their ability to generate revenue, improve efficiency, enhance guest experiences, and deliver long-term business value.

Eleanor Waddell emphasizes that the most compelling solutions deliver value across multiple performance metrics simultaneously, rather than addressing a single operational challenge.

How does Avendra International help hospitality organizations?

For more than 25 years, Avendra International has served as a trusted procurement partner and strategic advisor, helping hospitality organizations evaluate solutions through a total-value lens. By aligning purchasing decisions with broader business objectives, Avendra helps clients drive profitability, improve operational performance, and enhance the guest experience.