Supply Chain Issues Are Impacting Operations at 86% of US Hotels
A new survey conducted by the American Hotel & Lodging Association (AHLA) found that the current global supply chain situation is impacting operations for nearly nine out of ten hotels. The survey includes more than 500 AHLA members and was conducted November 8-22, 2021.
Supply chain disruptions are impacting the operations of more than eight in ten surveyed hotels, and nearly three in four hotel operators say the disruptions are negatively impacting their business revenue.
86% respondents reported that supply chain disruptions were having a moderate or significant impact on their operations. More than half (52%) say the problem has grown worse over the past three months. 74% percent say supply chain issues are having a negative impact on business revenue.
“Hotels have a complex supply chain that requires regular procurement of a wide range of goods and services each day. And whether it’s production backups or shipping delays, supply chain disruptions are compounding hotels’ existing problems and increasing operating costs during an already tough time,” said Chip Rogers, President and CEO of AHLA. “This survey highlights just how widespread these challenges are for hoteliers. That’s why now is the time for Congress to pass the Save Hotel Jobs Act, so hotel employees can get the relief they need during these difficult times.”
Hotels that participated in the survey indicated they don’t expect the supply chain issues to be resolved any time soon. Almost half (46%) of them said disruptions could last somewhere between six months and an entire year. 36% said they expect the shipping crisis to continue for more than a year.
Other Findings
Percentage of hotels experiencing a lack of availability for:
- Linens and other soft goods: 85%
- Food and beverage supplies: 76%
- Day-to-day cleaning and housekeeping supplies: 72%
Percentage of hotels experiencing increased costs for:
- Day-to-day cleaning and housekeeping supplies: 79%
- Linens and other soft goods: 77%
- Food and beverage supplies: 77%
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Hilton Zurich claimed they ran out of soap for the room. Really? They didn’t add additional liquid gel and we didn’t have enough soap to shower. That is just ridiculous.
There’s a labor issue across most / all industries. But, it is particularly noticeable in hotels and restaurants. This is separate from and in addition to the supply chain issues.
Properties that were able to remain open during COVID had an opportunity to preserve their teams. But, among the properties that closed, it is a different story. Even among five-star properties, as they reopened, not all team members returned. Importantly, not all of their “A players” returned. And, as a property needs a certain staffing level, the properties have had to back fill these lost team members with any warm body. Even among five-star properties, one can sense that the service levels aren’t what they used to be — in some cases, it is eye-opening. That being said, one has a greater appreciation of those properties that had been able to maintain their prior service levels.