Picking the Right Hotel Supplier is an Art. Want to Master it?

Lately, I have been thinking a lot about which topic to cover next.

While I was doing my research, I came across a ‘people also ask’ question — how to pick the right supplier/vendor for your hotel.

This was the eureka moment for me.

While I have been talking a lot about aspects from the surface, I realised that this is something really important for hotels.

Hospitality providers spend a huge amount on outsourcing several things for their properties such as software, housekeeping essentials, and raw materials.

Therefore, to get quality products, they need to choose the right vendor.

In this blog, I am going to give some major tips to select a hotel vendor.

What is a Hotel Vendor?

A hotel vendor or a hotel distributor is a party (business or person) in the supply chain that makes goods available to hotels.

Many might wonder, whether a vendor is just a seller or it also manufactures. Well, a vendor can operate as both.

Now, how do vendors work?

The method of business varies from vendor to vendor. It could either work on a contract basis or one-time purchase or any other model.  

Why do Hotels Need to Outsource Certain Services/Products?

I am pretty sure; you must be wondering — why on earth would someone outsource food?

The reasons for this are solid.

Certain areas in a hotel cannot be managed by the hotel itself; the efficiency decreases.

Not just that. At times, setting and managing these areas costs an arm and a leg.  

There was a time when hotel reservations were taken on excel sheets. But the process was inefficient.

Hotels needed an advanced system that could do much more than just handle reservations. But again, building a system like that wasn’t a hotel’s forte.

Even if the ones who built had to burn much more cash than they planned. On top of that, it was dead like a doorknob.

Soon, SaaS came into the picture and offered hotels a cloud-based property management system (PMS) that solves everything.

Hotels just need to pay the vendor and get the PMS that is more like plug and play. They don’t even have to build heavy servers that would bust their chops. Everything is on the cloud and can be accessed from anywhere, anytime.

SaaS vendors today hold great value in the industry for what they provide.

It is not just the technological elements; many hotels outsource an entire department.

To give you an idea, here’s an example.

Stephanie has recently opened a motel. She has set up everything perfectly and things are working fine. The food is one of the major reasons her motel has gained so much popularity.

What she has done is, instead of setting up a kitchen in-house, she works with a vendor who takes care of the food department. All she needs to do is pay them monthly.

How to Choose a Hotel Supplier?

Now, let’s address the elephant in the room.

The following points will help you decide what are the things to look for. Like I said in the beginning, it would be great if you use them as a checklist.

1. Perform guest analysis

The reason you need to perform the guest analysis is that it will help you avoid unnecessary expenses.

The whole idea is to learn what supplies do hotels need, based on the guests’ preferences.

2. Identify what all things you need to outsource

Once you’re done with the analysis part, list the things you need to outsource. However, you don’t have to outsource everything that you identified.

When the list is ready, rule out all the less-important ones. This is like a filtration process.

For example, you have identified that guests have been using your vending machine a lot. But you have also identified that guests are leaving bad reviews about the duvets.

Now, you have two items on the list.

You might want to consider upgrading your vending machine. But what about the duvets? Your vending machines are working fine, but the latter one needs more attention.

I hope you’re getting the point. It’s about setting the right priority.  

3. Research about different suppliers online

Once you have decided on all the products you need to get, you have to find the best supplier. You can start your search by going on the internet.

However, be mindful of the fact that it’s easy to get lost in the rabbit hole of research. 

Therefore, keep your research limited to certain aspects.

For example, you can start by just exploring manufacturers. If you don’t find anything, then look for wholesalers.

4. Find a one-stop supplier for all your needs

The idea of a one-stop supplier is simple — customers can get all they need in just “one-stop”.

The best way to explain this is by the example of a hotel PMS.

There are multiple departments in a hotel and incorporating different systems for each department costs a fortune.

This is where a hotel PMS comes into the picture.

A hotel PMS provider offers a wide range of solutions. The system itself helps properties manage all their operations, from a single dashboard.

Over and above, they also offer services like revenue and marketing management.

This goes the same way for other requirements as well.

5. The pricing should be fair/reasonable/negotiable

Running a hotel already costs a bomb and you always have to keep things within your budget.

So, whenever you get in talks with a supplier or a vendor, make sure you negotiate.

No doubt, product quality matters. But just because a supplier is offering top-notch products, you can’t afford to drain your hard-earned currency on duvets.

There are plenty of fish in the sea. I am sure you’ll find someone that does the job at a price that doesn’t hurt your pocket.

6. The supplier should offer consistent quality products

Now, this is very important. You have to keep running product inspections from your end as well. Ensure that the vendor is not playing around with the product quality.

Let me share a personal experience.

I judge a hotel by their bathroom products (yes, I am that person)! There’s a nice hotel in my town and I go there every month to rejuvenate myself. The hotel always places quality bathroom essentials and it impresses me every time.

But on my last visit, the shower gel they used was expired. I called them up and informed them about it. They were shocked too because they got the products just a day before.

This is what happens. When you outsource things in bulk, there are chances of such events. So, it is supremely important to check everything thoroughly.

If there’s something wrong, get it replaced by the vendor.

After all, at the end of the day, it’s your hotel that faces criticism.

7. Leverage existing relationships with vendors

Another way to find suppliers and vendors for your property is by getting in touch with your contacts.

Remember that hotel distributor you met at that conference who later became a good friend? Why don’t you just ask him?

Or, how about Mr Daniel who runs a bed sheet manufacturing unit?

If you have such connections, do make the most out of them. They are, most of the time, great to work with.

8. Check whether the vendor’s staff is professional

Wondering why this should be a concern?

Here’s an example.

You have recently installed metal detectors on your property for a security check. But suddenly one of the detectors stopped working and you have requested the vendor to send their technicians.

When the technicians arrive at the site, they just fix it and leave, without even explaining the issue. 

Would you like that? Obviously no!

Fixing an error is one thing, but a professional always answers all the queries. It also explains everything that you need to keep in mind to avoid such breakdowns in the future.

9. The supplier should have a good after-sales service

The above point also has a direct connection with this.

A supplier must provide great after-sales support. If you face any issue with the products, you should get a quick resolution for that — be it a refund or a replacement.

Over and above, the hotel supplier should reach out to its customers after a purchase to ensure that their experience is as good as it can be.

10. Check references before selecting a vendor

One more thing you can do is check references for the hotel suppliers you have shortlisted.

Try getting in touch with their existing customers and ask if the vendor is reliable. Or, ask anything that you have in mind.

There’s no wrong with such a move. After all, you’re going to spend a good amount of money on outsourcing all the products you need.