Key findings: Hotels and accommodation
This hotels and accommodation procurement market intelligence report analyzes the impact of regional and global cost drivers on the pricing and procurement strategies. The report also offers an analysis of the US supply market and market entry barriers to help buyers and suppliers achieve cost-savings.
With the global business-related traveling spend increasing with every passing year, the overall spend momentum for the accommodation and hotels industry looks promising. This trend will continue with more businesses stepping into the global corridors that are necessitating frequent project-related business travels both within and beyond the national territory. Consumers are exhibiting a higher preference for the online hotel booking process that simplifies booking accommodation while offering a range of choices. This, in turn, is boosting the growth scopes of the accommodation and hotels industry.
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Written from the perspective of the buyer and the supplier, this hotels and accommodation procurement research report offers actionable information on the global and regional spend potential. Additional information includes an analysis of the suppliers’ cost structure, the total cost of ownership, pricing models, procurement strategies, supply chain margins, and much more.
- Global and regional spend potential for hotels and accommodation for the period of 2018-2023
- Risk management and procurement strategies
- Incumbent supplier evaluation metrics
- Pricing outlook and factors influencing the procurement process
Analyze the global category spend for hotels and accommodation
The luxury hotels industry is expected to largely contribute to the global category spend growth rate because of the increasing frequency of business travel, the rise in disposable incomes, and the subsequent growth in tourism. The budget hotel segment is set to witness the fastest growth in developing nations like India and China.
For more information on the exact spend growth rate and yearly category spend, download a free sample.
This hotels and accommodation procurement research report offers coverage of:
- Regional spend dynamism and factors impacting costs
- Total cost of ownership and cost-saving opportunities
- Supply chain margins and pricing models
Optimize category spend for hotels and accommodation
Procurement strategies for the accommodation and hotels industry must lay emphasis on supply base consolidation. This can be achieved by engaging with a single supplier who can cater to all the diverse hotels and accommodation needs. Such procurement strategies have been observed to have significantly reduced the procurement spend associated with engagement with multiple suppliers. However, buyers must practice exception when their selected supplier does not have a presence in a specified region.
This market intelligence report also offers coverage of:
- Key category management objectives
- Supplier cost breakup
- Category pricing dynamics
Assess category spend for the US region
Majority of the US-based organizations have multi-regional operations which are resulting in an incremental spend on business travel such as the short-term project-based trips. This will favor the category spend momentum in the US. However, the current growth curve of the accommodation and hotels industry will suffer a setback due to a stark decline in the number of tourists visiting the US, which is a result of the ongoing political tumult in the region.
Additional information offered in this hotels and accommodation procurement research report will help buyers analyze:
- Margins of suppliers in the US
- Category spend in the US
- Price outlook and forecasts until 2023
Build strategies for effective supplier selection
In the accommodation and hotels industry, it is advised that buyers partner with service providers that exercise sound operational capabilities in various geographic locations. This will enable buyers to rationalize their supply base and consolidate their spend.
This hotels and accommodation procurement research report identifies the major costs incurred by suppliers and provides additional information on:
- Competitiveness index for suppliers
- Market favorability index for suppliers
- Supplier and buyer KPIs
Devise effective category management strategies for hotels and accommodation
Timely and adequate provision of services plays critical roles in marking success in this industry. It is imperative that category managers engage with suppliers that can offer high quality of services and accommodation of unplanned requirements. Suppliers are also expected to offer rooms at contracted rates even for the last available rooms when there is high demand.
Key insights offered in this market intelligence report on hotels and accommodation will help the buyers identify:
- Risk mitigation strategies
- Cost-saving opportunities: Supply-side levers
- Supplier relationship management strategies
Determine the spend dynamics for key geographies
The growth of the corporate sector in APAC is necessitating corporate travels which are resulting in increasing demand for the accommodation and hotels industry in the region. The recent devaluation of the Euro has been attracting a greater number of tourists visiting Europe, thereby; supplementing the category growth in the region. However, factors like the oil crisis and the economic and political instability will impede the category growth in MEA.
Key geographies analyzed in this hotels and accommodation procurement research report include the following:
- North America
- South America
Information on the top hotels and accommodation suppliers and specific procurement strategies based on the hotels industry analysis are offered in this market intelligence report. Download a free sample to access the report’s complete scope of coverage.
Hotels and accommodation procurement market analysis overview
Procurement Best Practices
Cost Saving Opportunities
Supplier Capability Matrix
Hotels and Accommodation - Category Spend Analysis
According to this hotels and accommodation sourcing and procurement report, one of the primary growth drivers for the global hotels and accommodation market is increasing adoption of mobile-based technology to enhance customer experience. Hoteliers are increasingly using mobiles to manage guest cycles. Several large hotels provide travelers/guests with customer-facing mobile apps to reward loyalty, manage pre-arrival check-in services, and provide location-specific offers. It also provides seamless connectivity between customers and hotel management.
Hotels and Accommodation – Procurement Best Practices
Buyers must achieve right mix of regional and global players. It is important for large organizations to maintain an optimum mix of hotel segments to save costs and procure good-quality service. This also allows buyers to meet ad hoc hotel/accommodation requirements and minimize costs on last-minute purchases.
Hotels and Accommodation - Procurement Challenges
Based on the analysis in this hotels and accommodation sourcing and procurement report, a major procurement pain point experienced by the buyers is the need to check whether suppliers adhere to their firms’ travel policies regarding advance booking and accommodation. The procurement specialists predict that the buyers must engage with suppliers who have proper communication of travel policies in SLAs.