Extended lead times, rising prices, and keeping up with constantly changing design trends, technology, and guest expectations are just a few challenges that continue to impact hotel furnishing supply chains in recent years that were initially upset by the pandemic.
Here are five trends, solutions, and other things you need to know about now so you procure the pieces — and deliver the experiences — your guests want and expect during these challenging times.
1. Guest Demands for Sustainability
Sustainability has become a top priority for many hotel visitors today, making it a significant concern for businesses in recent years. It will only become more critical as more people focus on caring for the environment.
According to Google Insights, more than 50 percent of travelers consider sustainability when planning trips. Booking.com also reports that nearly three of four hotel guests plan to make environmentally conscious travel choices in the future. A survey reported in Modern Restaurant Management cited a growing percentage of guests willing to pay significantly more per night for sustainable accommodations, with many saying they would pay up to 75 percent more for a room.
Three fundamental principles drive this current demand for environmentally conscious lodgings:
- The desire to support sustainable practices
- Minimizing environmental impact
- Aligning with personal values.
Sustainability is not limited to a specific demographic, but younger hotel visitors lean heavily into it because of concerns about what the planet will be like in the years ahead.
Hoteliers must respond to the demand for sustainability, including in the furnishings and technology you select. It can be challenging to stay current with the latest sustainability trends. They move so fast. That’s where the experts at The Stroud Group can help. We can recommend the items that demonstrate your commitment to the environment now and in the years to come. Plus, they will be classic and built to last, meaning you won’t have to change them out quickly, adding to full landfills.
2. Furnishing Availability
Hotel furnishing supply chains have not yet returned to dependable pre-pandemic levels. In addition, the current high rate of hospitality property development and renovation makes it impossible to find the furnishings you need when you need them at an affordable price.
Successful hotel development and rehabilitation projects must be able to withstand supply chain disruptions with a proactive procurement strategy and contingency plan. This will help ensure that your hotel gets the items it needs without delays or unnecessary storage costs.
Some factors to build into your plan include:
- Local sourcing. Leveraging domestic suppliers when possible simplifies logistics, reduces lead times and costs, and provides greater flexibility during a disruption. It also helps avoid the global transportation breakdowns that are becoming increasingly common today.
- Diversify suppliers. You never want to get all your furnishings from a single — or few — suppliers. It puts the project at significant risk. Developing relationships with a variety of vendors can help reduce risk, providing more options when your regular ones experience shortages or delays.
- Evaluate supplier risk. Are your hospitality furniture, fixtures, and equipment (FF&E) and operating supplies and equipment (OS&E) vendors financially sound enough to meet demand? Are they located in places subject to geopolitical instability? Are they able to continue to operate after a natural disaster? These are just a few factors you must consider to ensure your suppliers are sound and able to meet commitments.
Building a bullet-proof furnishing procurement plan can be challenging. There are so many factors to take into account. The experts at The Stroud Group have delivered quality furnishings on time and budget for decades. We can do the same for you.
3. Supplier Relationship Management
Having great relationships with a wide array of hospitality furnishing suppliers is central to getting exactly what you need on time and budget. The issue: Many hospitality companies don’t have enough regular projects to develop deep, trusting relationships with various vendors.
That’s where working with a company like The Stroud Group can help. The people on our team are constantly working on hotel projects. We keep our array of vendors wide and varied. You can also rest assured that any company we recommend has been thoroughly vetted and can be trusted entirely.
4. Leveraging People AND Technology
Today, it’s critical to reframe the people versus software debate when it comes to hospitality FF&E and OS&E procurement. You not only need to partner with the right people to get the supplies you need. You must also arm them with the technology required to optimize business processes. By adopting digital solutions, hotels can identify a more comprehensive array of product options from more vendors at different prices. They can also better control and monitor the ordering, development, and delivery of furnishings. Technology can also help facilitate communication, payments, and other critical things.
The issue: It can be challenging for hospitality companies to focus on building effective furnishing equipment processes, procedures, and systems, considering all the other solutions they must maintain to serve guests and manage properties.
That’s why partnering with a company like The Stroud Group makes sense. We’ve built tried-and-true processes, procedures, and systems that are updated with new advancements, so you don’t have to.
5. Data Analytics
In today’s information age, leveraging data analytics and predictive analysis can help hoteliers develop, refurbish, and furnish properties more efficiently and effectively. Data analytics can help identify trends, efficiencies, patterns, and issues and act on them on a timely basis. It can help you find better furnishing options, reduce costs, and help ensure the project gets done on time.
If you work with The Stroud Group for your FF&E, you can expect 24/7 access to complete data and reporting so you can make informed choices about your hotel design and refurbishment project whenever you need to.
Overcoming Hospitality FF&E and OS&E Supply Chain Issues: The Bottom Line
While you can’t fix today’s FF&E supply chains, you can take active steps to work through and around the issues caused by breakdowns, rising prices, and changing guest expectations. Leveraging the tips in this guide — and partnering with an experienced hospitality furnishings procurement firm like The Stroud Group — can help. Contact our experts to find out how we can help you get the furnishings and supplies you need on time and budget.