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Category: Blog Posts

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Blog PostsLodging

How Hotels can Benefit from Group Purchasing Organizations

Every guest has certain needs and expectations. Business travelers want certain amenities to make their travels comfortable while leisure guests are motivated by other amenities every traveler has one clear expectation – consistency with a brand. They expect consistency in quality, value and other aspects of their hotel stay.

According to an article on the Hotel News Resource website, getting the basics right while consistently improving your operations goes a long way in making sure guests are happy, satisfied and want to return.

You can spend a lot of time simply focusing on the basics, but you might inadvertently overlook other important aspects of managing a hotel business. Occupied rooms generate revenue, but represent only one slice of the revenue pie.

You might be surprised at the steady increase in overall revenue generated from better management of your purchasing. Better management does not mean changing suppliers often, even though other suppliers might promise lower prices from time to time.

Traditionally, an operator negotiated with suppliers in their local area, which limited their options; they could only leverage their buying powers so much. With new technology, you’re now able to use hotel group purchasing organizations like Source1 Purchasing to get volume discounts and better prices from the manufacturer.

The relationships that group purchasing organizations have with manufacturers allow mid-market operators to secure pre-negotiated prices through the local supplier network, just like a larger organization would. This direct manufacturer relationship allows you access to a broad variety of product lines and brands, so you can repeatedly order high-quality products at a consistent price.

Operators can also consider alternatives to their products and services they buy as consumer trends change. A hotel group purchasing organization can offer the operator insights and trends as well as stable purchasing solutions historically; the research into new ideas would be very time consumer for hoteliers.

Smaller and mid-market operators have traditionally used competitive bidding to find the products they need at the lowest price; they want to ensure they’re getting charged as little as possible. But this often causes them to spend hours doing research and changing suppliers. The result can have a long term impact of the quality and consistency of products and services, and importantly, distract operators from other important areas of the hotel operation.

Frequently changing suppliers can also increase the likelihood of losing quality products and consistency. But remember: Guests want consistency throughout their stay, especially business travelers. When that need is met, they view your hotel favorably and share their positive experience on social media sites. Happy guests also return.

As they learn about GPO benefits, more operators are joining buying groups to access savings but also expertise, access to industry trends, updates about new products, and renegotiated contracts that protect their operating costs from inflation.

Operators that are considering a group purchasing organization like Source1 should take a look at the top 25 products they use and see what kind of savings they could achieve by using strategic sourcing. Our strategic sourcing solutions can get you a better price while saving you time — no more shopping around for the best price each month. Source1 knows that every dollar matters and that you need the right products at the right price.

You no longer have to handle all the purchasing negotiations alone. A hotel purchasing group does more than provide access to lower prices. This type of program also reduces operating costs, ensures quality and, most importantly, provides you with the insights and resources of a partner with purchasing expertise.

Graphic designed using information from: Hotel News Resource

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Blog PostsLodgingRestaurants

Why Should You use a Sourcing or Purchasing Company to Access Essential Food and Beverage Items?

Do you have a strategic purchasing process in place to maximize signature items on your menu without overspending or wasting food?

Food and beverage sourcing or purchasing services for the hospitality and foodservice industries play a vital role in the success of all restaurant operations – both associate with a hotel or resort, and self-standing. You have so many options when it comes to selecting products.  Add a strategic plan that you consistently use and you will be able to control your food costs.

According to an article on the StarChefs.com, Chef Chris Chung of AKA Bistro in Boston’s Lincoln Park summarizes his method to control food cost into four basic principles — “order as necessary, maximize each ingredient, cook seasonally and have more than one vendor.”

Chung also trains his employees to use every piece of a product and be creative with the scraps.

In the same article, chef Zach Allen, head of the kitchen at three Las Vegas restaurants, shares that he has been able to actually lower food costs at all of his restaurants by knowing his inventory, ordering wisely in bulk and training his staff to diligently practice portion control.

It is possible to consistently serve quality, delicious food and even offer new or seasonal items with some planning, testing and preparation. Hospitality sourcing or purchasing services, such as those provided by Source1 Purchasing, help track your food cost so you can focus more energy on serving customers.

There are three parts to the product selection process you need to consider: the ingredients, the recipe and menu planning.

Although the building blocks for selecting the right products are essentially found in these three areas, each element certainly has its own focus of quality and standards.

The Ingredients

For example, turkey breast comes in a variety of products, from premium, naturally basted turkey with little salt added down to a chunked and formed turkey roll. And these varying levels of products will apply to everything from butter to vegetables.

Ingredients are essentially the foundation. For ingredients, you’d be looking at a product’s flavor profile, yield and brand.

The Recipe

The recipe blends these ingredients in combination to ensure consistent flavor notes are presented in a consistent fashion. Recipes are normally proofed and tested to make sure they’re consistent in flavor profile and harmony. But how you spice one dish at a restaurant varies greatly from how you’d spice a large-volume dish for a college cafeteria.

The Menu

Finally, the menu offers a variety of items that reflect the concept and theme of the restaurant. It brings together all of the elements from the ingredients and recipes that the operators have selected.

Restaurants need to regularly conduct promotions and product testing to determine which new products will work support the theme or concept. These promotions allow the operator to see which new products can most improve the guest dining experience and offer instant feedback. Successful promotional items can be incorporated into the regular menu, ensuring that offerings are always evolving.

Every menu should include signature items that reflect the character of that establishment. These items demonstrate the restaurant’s uniqueness and offer a standout experience that helps to attract repeat customers.

This is where the primary benefit of smart purchasing practices comes in. Operators can deliver high-quality branded products — preferred products that every diner wants — for the price that they used to pay for medium-quality products. These high-quality products help restaurants create a strong reputation and deliver consistent service. Restaurants now have the ability to use a better-quality product and create better-tasting meals, allowing them to enjoy the halo effect this casts over their entire operation.

As you continue to improve your food and beverage operation, consider the benefits afforded by sourcing services or purchasing insights from companies like Source1 Purchasing. They work alongside their customers to procure or purchase the best ingredients at the best price possible from well-known suppliers that are known and trusted. That way, you can focus your attention of growing your business and exploring new promotions…confident that you are delivering a quality, memorable dining experience for your guests.

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Blog PostsLodgingRestaurants

How can Strategic Sourcing Help You Find Specialty Products and Create Signature Menus?

New food and beverage trends are finding a place on hotel menus because travelers today want to maintain their same eating habits when they are traveling for business or pleasure. . On a larger scale, these various trends challenge operators to keep current with the f&b trends and change their standards when the time is right. With a strategic sourcing or purchasing plan in place, it’s easy to handle the changing expectations of guests and deliver the right products at the right time ….and at the right price.

Even simple trends like free breakfast can have an impact on operations across the industry in certain levels. Take a moment and consider this…how many hotels offered a free breakfast 20 years ago? Today, it’s expected by travelers who frequent certain brands at certain levels. Research has demonstrated that, if the hotel rates are about the same, a guest will choose the hotel with the free breakfast. These expectations give operators important insights to consider.

How do you offer a quality breakfast at a reasonable cost?

Once an operator overcomes consideration for trial-and-error or even addresses a possible reluctance or fear of change, then their hotel can begin to explore new ideas that support the trends and keep them on track to be competitive.

The key is for operators to look to a strategic sourcing or purchasing resources like Source1 Purchasing to examine what they’re purchasing and see where they can save money. Operators need to identify the types of products that will help them engineer a food and beverage operation that delights their guests. If operators find the many other aspects of running a hotel operation to be all consuming of their time, they have the option to engage experts in the field of purchasing to guide them on new products, new trends, and special offers by nationally known brands.

Operators should consider the advantage of supporting new trends like gluten-free and organic foods that are in demand and may drive more sales. These products can help operators create a more desirable experience for their guest – a great source of word-of-mouth referrals.

According to an article on the Los Angeles Times website, the FDA has set specific guidelines for gluten-free products because one-third of Americans are embracing this diet. That’s a number that deserves the attention of all operators who offer food service. Gluten is a protein found in wheat, barley and rye. It is estimated that approximately 3 million Americans have been diagnosed with celiac disease, meaning they cannot digest foods containing gluten. Even people not restricted to this diet as a result of celiac disease are eliminating gluten from their diet.

According to an article on Celiac.com, numerous hotels, including the Ritz-Carlton chain, Fairmont Hotels & Resorts and Omni Hotels & Resorts, have been changing their menus and providing comprehensive training to their employees.

“For a number of years, there’s been a growing recognition of people with gluten intolerance,” says, Stephen Rosenstock, senior vice president of F&B for Omni Hotels. He also notes in the Celiac.com article that gluten-free options don’t have to cost hotels more money. It’s all about sourcing differently and planning for it.

More operators are responding to these new trends and searching for these gluten-free, organic and other specialty products at a reasonable price. Operators are looking to strategic sourcing and purchasing organizations to help them source products like Bars, organic fruits and vegetables and specialty ingredients. Source1 Purchasing helps their customers source these products via direct manufacturer agreement that deliver the most favorable quality.

It’s not just about Clif Bars. Source1 helps operators find the unique products and services that the brand or the operator defines to consistently maintain the overall guest experience including a signature dining programs. Operators have the flexibility and autonomy to select the products they need to keep their food and beverage program aligned with current trends. With the help of a strategic sourcing and purchasing organization like Source1, operators can identify the products that will help them create a unique and memorable experience at your facility.

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Blog PostsLodging

How can a Group Purchasing Organization Improve Hotel Amenities for Business Travelers?

Business travelers represent a significant percentage of recurring revenue, so hotel operators must ensure they’re offering the amenities this group wants. That requires taking inventory of what’s currently offered and then enlisting help from a group purchasing organization to fine-tune hotel amenities for business travelers and consider any evolving trends. The result?  A competitive edge and greater guest loyalty.

Professionals are focused on work and arrive with different needs and expectations than leisure travelers. They need to be able to stay connected while working on the road, so amenities like a reliable high-speed Internet connection and comfortable workspace are vital to their comfort and productivity.

An article on HotelCluster.com highlights several other key amenities. Examples include 24/7 housekeeping, meeting venues with multimedia equipment, transportation to/from the airport,  charging stations for electronics, rental service for notebooks and tablets, a full-service business center, and recreational and entertainment facilities.

Business travelers are primarily looking for hotels to deliver on their brand promise…with consistency. After traveling a day of meetings, they want their hotel to deliver a consistent, positive experience. It’s all about the trust the guest has with that brand.

A significant part of the overall experience relates to dining options. Hotels need to ensure they’re delivering on those guest expectations with the right brands, and that comes down to strategic purchasing. Does the operation have access to the right products at the right price point? Using a group purchasing organization like Source1 Purchasing provides tools and resources so operators are able to deliver those products with a brand halo.  In turn, business travelers feel like they’re receiving a consistent, high-level experience with every visit, regardless of the zip code.

Convenience is also a top priority for business travelers. For example, the Hyatt Place brand has created a bistro concept where guests can order sandwiches, pizza, soups, salads and sweets ahead and then pick them up on their way up to their rooms. They also have a 24/7 market where drinks, snacks, baked goods, and other quick meals are available.

Ultimately, the products and services in the guest experience can be broken down into three types:

1) Dissatisfiers: This can be anything from being served food that is cold or off-flavor to having a rude waiter at dinner. These negative experiences cast a shadow over the whole guest experience and damage customer satisfaction levels.

2) Satisfiers: These are the characteristics that guests expect to deem a stay acceptable. They want hot food served by friendly people in an efficient manner. It’s not memorable, but it meets all the basic exceptions and guests will consider it an OK experience.

3) Exciters: These are the qualities that make a stay exceptional and one your guests will remember. It can be anything from an ice carving in the dining room to a chocolate fountain on the dessert table. These are all features that elevate a meal to an experience. These exciters become a hotel’s competitive advantage and help ensure that guests return repeatedly.

When considering what amenities to offer, hotel operators need to audit their current services with these areas in mind. With help from a group purchasing organization, hotels operators can build a base of highly satisfied guests. Whether it’s a signature dessert or an amazing pillow, these are the amenities guests will remember and return for.

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Blog PostsLodgingRestaurants

Turn to a Strategic Sourcing Partner to Boost your Social Responsibility Efforts

Consumers have become more aware of their environment, their health and how their choices impact these areas, and they want to patronize businesses that reflect their personal values. Social responsibility is rapidly becoming an important part of business as more consumers look for these programs when choosing which companies to do business with.

Now, more than ever, you need a strategic sourcing partner to help navigate the process of identifying the best suppliers, prices and quality products to meet these needs.

According to an article on Forbes.com, corporate social responsibility (CSR) is becoming mainstream and routinely practiced by large corporations as well as small locally-owned companies. Business owners are reporting that employees are happy to be contributing to their communities. For the most part, their business has actually increased because of their charitable and green efforts.

Hotels are also joining the growing social responsibility trend for businesses in the U.S. An article on the Green Lodging News website highlights how major hotel brands have been embracing these social values to make a difference at their hotel properties, in their communities and beyond. According to the article, MGM Resorts International and Marriott are just two examples of hotel giants leading the way in this movement.

For example, MGM and Cirque du Soleil have united to support the mission of the organization One Drop, which is to promote awareness of the importance of clean water. Meanwhile, Marriott partners with the American Red Cross, Habitat for Humanity International, Feeding America and SOS Children’s Villages. In 2011, Marriott associates worldwide donated more than $30 million to charitable causes and volunteered $9 million worth of their time.

Major hotel brands are also encouraging meeting planners to blend team building with volunteerism at their events. According to the Green Lodging News article, Katie Brashear, director of public relations for the Westin Phoenix Downtown and Sheraton Phoenix Downtown, works with planners on a regular basis to create social responsibility activities. And Marriott-owned Ritz-Carlton properties offer Give Back Getaways, where guests combine volunteer work with their stay.

Guests want to know what you are doing as an organization to promote a sense of community. Do you contribute to local or national charities? Do you sponsor a little league baseball team or youth soccer event each year? Do any of your employees volunteer in the community?

These choices tell guests that your hotel or restaurant is really connected to the community and sends a message that you care about how your organization is viewed in the community. This involvement also sends a message that you’re interested in more than your own bottom line.

If your hotel or restaurant is considering charitable work, look for a charity that fits who you are. A restaurant may want to consider working with the food bank or an organization that promotes locally-grown food. A hotel may want to partner with the local chamber of commerce, a disaster relief effort or a charity that addresses a local need like a children’s school supply drive.

You can also weave social responsibility into your purchasing decisions. Work with a strategic sourcing organization like Source1 Purchasing to identify and buy from regional suppliers. Many groups are looking at “buy local” initiatives for food and products to support the local economy while also minimizing the transportation costs and carbon footprint caused by trucking items across the country.

Source1 can provide you with strategic sourcing solutions that honor your promise to your guests and elevate your visibility through social responsibility. When guests realize you are aware of their environment and their health, and that you genuinely care and want to make a difference, they will in turn choose your hotel and become a loyal guest.

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Blog PostsLodging

How to use Strategic Sourcing to Support Sustainability with 6 Key Initiatives

Guests want to know if your hotel supports sustainable practices. Even if they are not demanding eco-friendly options, hotel guest seem to relate favorably to companies with a mission to practice sustainability.

Guests also feel good about themselves when they make a difference for the environment. According to data from the J.D. Power and Associates North America Hotel Guest Satisfaction Study, as highlighted in an article on the CNN Travel website, nearly 90 percent of hotel guests are offered the chance to do something sustainable during their stays. The two-thirds that voluntarily participate describe a higher level of satisfaction than guests that do not participate.

Strategic sourcing of products and appliances that actually help reduce energy and water costs may have been seen as unnecessary a decade or more ago.  But today, hotel owners find value in containing operational expenses, supporting corporate sustainable guidelines and inviting guest to participate.  In turn, your hotel will benefit in enhanced customer satisfaction as just one return on the investment. Here are 6 ways an operation can be sustainable.  Each department head should consider ways their team can support efforts related to:

  1. Recycling
  2. Choosing renewable energy
  3. Searching out energy efficient activities
  4. Engaging in waste reduction
  5. Conserving natural resources
  6. Eliminating or controlling toxic substances

Progressive hotel operators are interested in what is trending because they naturally want to be relevant. They want to promote sustainability for a variety of reasons: Some operators are dedicated to the cause and want to do their part in being environmentally friendly, while others simply want to attract guests and go with the current trend.

There are many operations that have found an easy way to access energy-efficient products by engaging an experienced strategic sourcing partner. Source1 Purchasing helps you connect with suppliers you know and trust  for sustainable products and services for every  department, including food and beverage, maintenance, housekeeping and the front office.

According to a report by the U.S. Environmental Protection Agency (EPA), a 10 percent reduction in energy use by the lodging industry could bring a savings of $745 million annually. Full-service hotels could generate $2 more revenue per room night, and limited-service properties could generate 60 cents more revenue per room night. Strategic sourcing is a way to access the products and services hotels need to support sustainable practices.

Hotel brands have been trying to increase guest satisfaction through eco-friendly options for quite a while. According to a 2012 survey by the American Hotel and Lodging Association, more than 75 %of U.S. hotels offer linen and towel reuse, 59 % have recycling options for guests and personnel and 46 % have a program in place for saving water.

Learning what is important to guests is a big factor in competing with other hotels regardless of the size of your property. Challenge your department heads to find new and innovative ways to blend guest satisfaction with a goal to reduce your ecological footprint. Source1 helps you keep your operation sustainable by providing you with suppliers to meet all of your purchasing and procurement needs.

Blog PostsLodging

How to use Strategic Sourcing to Support Sustainability with 6 Key Initiatives

Guests want to know if your hotel supports sustainable practices. Even if they are not demanding eco-friendly options, hotel guest seem to relate favorably to companies with a mission to practice sustainability.

Guests also feel good about themselves when they make a difference for the environment. According to data from the J.D. Power and Associates North America Hotel Guest Satisfaction Study, as highlighted in an article on the CNN Travel website, nearly 90 percent of hotel guests are offered the chance to do something sustainable during their stays. The two-thirds that voluntarily participate describe a higher level of satisfaction than guests that do not participate.

Strategic sourcing of products and appliances that actually help reduce energy and water costs may have been seen as unnecessary a decade or more ago.  But today, hotel owners find value in containing operational expenses, supporting corporate sustainable guidelines and inviting guest to participate.  In turn, your hotel will benefit in enhanced customer satisfaction as just one return on the investment. Here are 6 ways an operation can be sustainable.  Each department head should consider ways their team can support efforts related to:

  1. Recycling
  2. Choosing renewable energy
  3. Searching out energy efficient activities
  4. Engaging in waste reduction
  5. Conserving natural resources
  6. Eliminating or controlling toxic substances

Progressive hotel operators are interested in what is trending because they naturally want to be relevant. They want to promote sustainability for a variety of reasons: Some operators are dedicated to the cause and want to do their part in being environmentally friendly, while others simply want to attract guests and go with the current trend.

There are many operations that have found an easy way to access energy-efficient products by engaging an experienced strategic sourcing partner. Source1 Purchasing helps you connect with suppliers you know and trust  for sustainable products and services for every  department, including food and beverage, maintenance, housekeeping and the front office.

According to a report by the U.S. Environmental Protection Agency (EPA), a 10 percent reduction in energy use by the lodging industry could bring a savings of $745 million annually. Full-service hotels could generate $2 more revenue per room night, and limited-service properties could generate 60 cents more revenue per room night. Strategic sourcing is a way to access the products and services hotels need to support sustainable practices.

Hotel brands have been trying to increase guest satisfaction through eco-friendly options for quite a while. According to a 2012 survey by the American Hotel and Lodging Association, more than 75 %of U.S. hotels offer linen and towel reuse, 59 % have recycling options for guests and personnel and 46 % have a program in place for saving water.

Learning what is important to guests is a big factor in competing with other hotels regardless of the size of your property. Challenge your department heads to find new and innovative ways to blend guest satisfaction with a goal to reduce your ecological footprint. Source1 helps you keep your operation sustainable by providing you with suppliers to meet all of your purchasing and procurement needs.

Sourcing-and-Procurement
Blog PostsLodging

How Hotel Guests Benefit from Creative Sourcing and Procurement Efforts

Food and beverage (F&B) service in hotels is undergoing a transformation due partly to the rapidly changing needs of guests. Hotel operators have come to understand how trends are impacting all facets of their F&B operation from themes to the latest flavor preferences to the revenue shifts of traditional and innovative operations.  The trends support a shift away from room service and mini bars, and toward coffee shops, authentic recipes and natural, calming décor.

Last year, room service represented 1.2 percent of total hotel revenue, down from 1.3 percent in 2011, according to figures from PKF Hospitality Research cited in an article on the USA Today website.

However, this trend appears to have been on the horizon for quite some time. According to an article on HotelNewsNow, “Room service appears to be less favored by hotel guests as revenues have been in a downward trend since 2007. A 2012 PKF chart on U.S hotel room service revenue shows that last year’s revenues averaged $866/room compared with $1,157/room five years ago, which represents a decrease of 25.1 percent.”

Travelers today are very clear on the amenities they expect to find in the different level of hotel accommodations.  Guests want what they want.  And hotels need to deliver on the expectations. How does an operation meet the ever-changing needs of their guests? It’s as simple as staying current on cutting edge trends on all facets of hotel operations via industry research, publications and procurement resources likeSource1 Purchasing.  A strategic procurement company, Source1 provides the latest trends, access to national contracts and insights that are structured to allow a hotel operation to operate efficiently by saving time, finding the right suppliers and products, and controlling costs. More hotels are also seeing the demand for high-quality food with exotic flavors. Today, hotel guests want exciting food and are willing to pay if they perceive value. Imagine how a guest might feel if they found F&B options that reflected their lifestyle and preference like farm to fork, gluten free and low-fat ?

According to the USA Today article, travelers have been displeased with the escalated cost of room service for years. Hotels are listening and exploring new ways to provide F&B options that serve the guest via sourcing and procurement strategies. For example, guests at the Public Chicago can enjoy gourmet meals in less than 10 minutes with no delivery fee. The hotel staff simply leaves the meal in a bag on the doorknob. This method greatly reduces labor costs and OS&E investment for rolling tables, dishes, silverware and linens

Hotels like Hilton Worldwide, the Hudson New York and the Four Seasons Hotel in Washington, D.C., are experimenting with similar ideas, all focused on emerging trends of domestic and international travelers.

Other hotels are embracing the locally sourced food trend, making sure that their products are produced within 200 miles of their location. This concept that requires a fresh approach to procurement is a great marketing message, setting your food apart from the competition. Customers appreciate the benefits of this new trend toward the fresh food that is healthier and presented to accommodate their preferences. It all comes down to a simple guideline…identify and meet your guests’ needs.

Source1 Purchasing is ready to help operators implement new trends in all facets of their operations with sourcing and procurement strategies. To learn how an operation can benefit, contact Source1.

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Blog PostsLodging

Why should procurement managers monitor online guest reviews?

Online reviews, how to manage them and their actual value to hotel operators can quickly change a friendly discussion into a hot debate amongst professionals in the hospitality industry.

Some professionals argue that online reviews are not valid or trustworthy because consumers have to sometimes weed through reviews of questionable value. But this doesn’t seem to faze the community of travelers. Hotel operators and hotel procurement managers should take note.

More and more, travelers depend on social media and online travel review sites like TripAdvisor to make well-informed decisions before planning their trip and selecting their accommodations. Travelers are quick to post comments and reviews about their experience in hotels and restaurants around the world.

Customers want to know you, the hotelier, are listening to their concerns. Responding to customer feedback via the web is no longer optional if you want to continue to grow your hotel business. In fact, your future business development depends on receiving and processing feedback in a timely manner. Now a global trend, it is increasing every year in the level of activity.

When you come across an online review, consider three essential rules when preparing your response.

• Be positive- With a little thoughtfulness, there is always a way to find a positive response. Remember to validate and solve with the highest level of professionalism.
• Be mindful- Listen fully to the concern. It may well reveal an area of your operation that requires attention.
• Be prompt- Establish you standard and be true to it. Online comments warrant immediate reply…can your operation support a 24-hour commitment?

Instead of focusing on negative comments, which are inevitable, try to see each comment (positive and negative) as a perfect opportunity to keep guests happy beyond face-to-face interaction. When you consider the guest’s issue, be mindful of offering a response that validates their concern and offers an equitable solution. After they check out of your hotel, seize the opportunity to respond to their invaluable online comments.

Maintain your hotel’s reputation online as well as you do in person so you can continue to deliver on your hotel’s promise. View it as a great opportunity to gather critical feedback and improve your service. Restaurants, airlines, cruise lines and even casinos have become just as dependent on these reviews as hotels. No one in the hospitality/service industry is exempt.

An article from The New York Times reports the Center for Hospitality Research at Cornell University discovered that hotels could actually charge slightly higher rates provided they had better customer reviews on travel rating sites like Travelocity and TripAdvisor.

Online reviews provide great insights for procurement managers. The benefit comes from knowing what guests like and want. Pay attention to the smallest clues and details that guests are talking about on social media and travel review sites.

Hoteliers have started to assigns staff to social media responsibilities, ensuring that they review and respond to feedback frequently. Having social media experts can help hotels understand both the quality and quantity of feedback from multiple review sources.
Best Western is a good example of a brand that is embracing this trend. Now hiring digital marketing representatives to make sure customers are happy with their stay and promote its properties online.

Hampton Inn is another great example of a brand that takes guest satisfaction seriously, offering a 100 percent satisfaction guarantee and a refund for unhappy guests. Despite the remote possibility that some might take advantage of this policy, Hampton Inn remains committed to the focus of keeping guests happy. Feedback from guests, particularly online, is critical.

Hotel operators and general managers should also regularly share guest feedback with the procurement department. Guest feedback plays an important part in making future decisions that support the guest experience.

As you monitor customer feedback on social media and online review sites, remember to respond quickly — guests expect prompt responses to both comments and complaints. Also be sure to deal with the negative comments directly. Ignoring negative feedback won’t make it go away and the issue may become worse.

Your dedication and show of great customer service can play a significant role in keeping existing guests happy and attracting new guests.

Source1 Purchasing works alongside your procurement manager to ensure consistent product quality and access to the latest industry trends. It is our goal to help you achieve higher customer satisfaction.

beverage-trends
Blog PostsLodging

How to use Strategic Sourcing to Uncork the Latest Beverage Trends

The hotel industry is experiencing steady growth. With that trend, hotel operators still have to balance guest satisfaction with allocated budgets in order to remain competitive. This can be quite a challenge without a strategic sourcing plan.

Operators need to always be mindful of consumer trends and always be looking for new menu items, fresh beverage ideas and unexpected amenities. Strategic sourcing allows operators an ability to provide enhanced value to their customers.

For instance, some hotel operators found that one easy change — revamping their breakfast beverage selections — resulted in a 10 percent savings on their beverage budget. Instead of just offering juices, they replaced some choices with flavored vitamin water.  Their customers were delighted with new option. With limited marketing investment, the operation was able to save money and deliver a pleasant surprise to their guests.

It’s always a good idea to try new things and engage your guests by asking for their feedback. They like to share their opinions. By soliciting their insights, the operator develops a hotel experience aligned to the guests’ expectations.

Tastes have changed. You can see it in any retail store. People want new and different flavors; the same old standards have become mundane. Sales of traditional juices, like apple and orange, are pn the decline. Customers are seeking out new and exotic flavors like mango-orange and guava. Plus, consumers are increasingly more health conscious, favoring flavored waters over juices. An operator can parlay the trend into a cost saving opportunity.

People are currently drinking 21 gallons of bottled water per year, according to an article on NYDailyNews.com. That is a lot of water. In addition, consumers are drinking 37 gallons of other flavored and enhanced waters, such as Coca-Cola’s vitaminwater.

Michael Bellas, CEO of Beverage Marketing Corp., an industry tracker, predicts all the water varieties could overtake soda consumption within a decade.

Doctors, health advocates and government officials have sparked more interest in these types of beverages with their focus on preventing obesity and other health issues. Consumers are choosing healthier drinks, but they also want something more than your typical juice selections.

You should consider switching juice to flavored water. Most hotels offer a complimentary breakfast, which typically includes everything from bagels and eggs to a full breakfast bar. What is a better demonstration that you understand your customers than providing them with products that they prefer? Changing your juice to a water selection does not require any major change.

You can use strategic sourcing to discover new flavors without overspending your budget. Why not test a variety of flavors? Try strawberry kiwi, lemon-lime, blueberry pomegranate, grape raspberry, watermelon, or even mojito limeade. There are so many exciting flavors to choose from and consumers are demanding exotic flavor combinations

Working with a strategic sourcing group opens the door to products, trends and best practices that can boost guest satisfaction and cost savings. A procurement group like Source1 Purchasing can help you identify and promote new products as a function of access and experience

When guests find something new they like in their experience at your hotel, whether it is flavored water, designer amenities, plush towels, it makes the experience more memorable and increases the likelihood of loyalty.

Source1 Purchasing works collaboratively with customers to ensure access to the latest industry trends, 500+ national contracts and ideas that translate to cost savings

 

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