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17Dec
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Let’s Prepare for 2022!
The past two years have been a real bumpy ride for the hospitality industry in the U.S. and around the globe. While 2020 was spent in figuring out the Coronavirus, 2021 was focused on getting as many people vaccinated against it as possible. The Mayo Clinic website claims that 59.9% of Americans have been fully vaccinated so far and at least 71% have received the first jab. So, what about 2022?
According to an upcoming Expedia report on 2022 travel trends, about 37% of U.S. travelers are planning both international and domestic trips next year. The report further predicts that after the lull of almost two years, more than two-thirds of American travelers plan to “go big” on their next getaway. This news must truly be music to the ears of anyone who owns a hotel in the U.S. However, there is one rising concern in the industry; the demand-supply gap for housekeeping supplies has widened to unprecedented levels.
The shipping industry in the U.S. is crippled with an extensive backlog of vessels. North America is facing an estimated 40% imbalance in containers. This means out of every 100 containers that come into port, only 40 leave. While 60 continue to accumulate in the port. A CBS news story on Long Beach and Los Angeles ports states that the increased consumer spending during the pandemic led to even more imports clogging up the ports. Earlier it took around four days to unload a container ship; today it takes nine or more. Adding fuel to fire, freight companies are taking advantage of shortages with record costs for freight movement, increasing up to over four times costs from the previous year.
Anything imported stand to be in less supply at a time when demand is finally rising. Hospitality supplies like towels, linens, electronic, hardware, paper products, decorative top sheets, and so on, are likely to go further down in supply.
There is another reason the bed lines and towels are in short supply. It lies 8,448 miles away from the U.S.- in India.
India is the largest cotton producer in the world. Also, India is the cheapest in the world compared to the US,Brazil and Australia.
In September 2020 india’s parliament passed three Farm Bills that started a movement commonly referred to as the india Farmer’s protest.These acts are:
- The Farmers produce Trade and commerce(promotion and Facilitation) Act, 2020
- The Farmers Empowerment and protection Agreement on price Assurance and the Farm services Act,2020
- The Essential Commodities (Amendment) Act,2020.
Farmer demanded that the Farmer Bills be revoked as they werw “anti-farmer laws”. Politicians from the opposition also rallied against it saying it would leave farmers at the “mercy of corporate”.
indian farmers wanted guaranteed minimal pricing for their crops Over the four months following these acts indian farmers were protesting to bring awareness to their pight with massive gotherings and road blockages that led to delays of raw materials, mainly in Punjab
Free passage of raw materials and finished goods was disrupted for months, leading to delays of finished products to market. on 19 november 2021, the union government decided to repeal the bills, and both houses of parliament passed the Farm Laws Repeal Bill,2021 on 29 November.
While farmers are happy with this move, they are looking for the government to put in place the guaranteed minimum support prices or MSPs. In allikehood, there is no saying when the exports will get back to normal.
What has all this got to do with welcoming 2022 the right way?
Although it’s difficult to predict the exact tirning most scientists agree that the Covid-19 pandemic will end and that the virus will become endemic. Simply put, the number of infections will eventualy decrease, fewer people will become severely ill, and we will learn to live with me virus. soon enough life and business will be back to normal.
So, the best way to ring in the New Year would be by ensuring you are stocked up pretty wes with hotel suppies. The supply in short and the pricesmay go higher. A CNBC report says that 59% of savelers prefer a domestic-only travel plan. This means there shall be more and more business for you in the coming times. After this long hiatus, you do not want to welcome excited guests to old sheets and towels. stand warned and gear up to welcome your business back with a completely updated inventory.
AGH Supply will be happy to help you through this. Competitive pricing, availability of products, hassle-free ordering and expedited delivery makes us one of the most reliable hospitality supply companies in the U.S. Even in these hard times, we are stocked up for you. Contact us today to welcome a happy 2022!
Frequently Asked Questions
01 How did COVID-19 impact Hospitality Supply Chain Management for hotels?
The COVID-19 pandemic created major challenges for Hospitality Supply Chain Management, including supply shortages, shipping delays, rising freight costs, and unpredictable demand. Hotels experienced difficulties sourcing essential products such as towels, linens, cleaning supplies, and guest room supplies. Reliable suppliers became increasingly important for maintaining smooth hotel operations during recovery.
02 Why are hotel linen products affected by global supply chain disruptions?
Hotel linen products such as towels, sheets, pillowcases, and bedding products depend on global textile supply chains. Factors including cotton production issues, transportation delays, import costs, and manufacturing disruptions can affect availability. Hotels benefit from planning inventory needs early and partnering with suppliers who maintain reliable stock levels.
03 How can hotels prepare for hospitality supply shortages?
Hotels can prepare for supply shortages by improving inventory planning, forecasting demand, and maintaining relationships with dependable hospitality suppliers. Keeping sufficient stock of essential items like hotel towels, bed linens, housekeeping supplies, and guest room supplies helps properties avoid operational disruptions during periods of increased travel demand and supply chain uncertainty.
04 How can hotels reduce supply chain risks through better supplier management?
Strong supplier management helps hotels reduce risks caused by shortages, price increases, and delivery delays. Partnering with experienced hospitality suppliers provides access to reliable inventory, bulk ordering capabilities, and industry knowledge. This allows procurement managers to maintain consistent hotel supplies while focusing on guest satisfaction and operational efficiency.
05 What hospitality supplies should hotels stock during travel recovery?
During travel recovery, hotels should maintain adequate inventory of essential supplies including hotel towels, bed linens, decorative top sheets, cleaning products, paper products, hotel amenities, and guest room supplies. Preparing inventory in advance helps properties meet rising occupancy demands and deliver the quality experience guests expect after extended travel restrictions.
06 What should hotel procurement managers consider when choosing a hospitality supplier?
Hotel procurement managers should evaluate product quality, availability, pricing, delivery reliability, and supplier experience. A dependable supplier should provide a wide range of hotel supplies, support bulk purchasing, and understand hospitality operations. These factors help hotels maintain business continuity and manage supply challenges effectively.
07 How does Hospitality Supply Chain Management impact guest satisfaction?
Effective Hospitality Supply Chain Management directly influences guest satisfaction by ensuring hotels have clean linens, comfortable bedding, quality amenities, and essential supplies available. When procurement and inventory systems work efficiently, hotel teams can provide consistent service, improve guest experiences, and encourage repeat visits.
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