Maximizing Room Profitability, Minimizing Environmental Impact

Avendra’s Commodity Market Update for Q1 2024 rings in some good news for your budget and guest experience. Inflation appears to be stabilizing, and may even begin to ebb, and the hospitality supply chain is flowing more freely than in recent years. Additionally, we’re finding ways for our customers to be more in tune with their guests when it comes to sustainability during their stay. We’ll look at two key areas from our most recent update that highlight how you can get the most from your rooms and your budget.

Reduce, reduce, reduce – room amenities

Avendra is committed to reducing our environmental footprint and helping you to do the same. A recent study reported 80% of travelers who were surveyed confirmed that traveling more sustainably is important to them. One area where our customers are making an impact is in large-format bathroom amenities.

Every year, 11 million metric tons of plastic enter our oceans, according to the Ocean Conservancy. By replacing the single-use plastics in your guest rooms, you will make a significant impact on the environment, and meet the expectations of your guests, many of whom are seeking properties with strong sustainability practices and standards. We’re assisting our customers in switching to brand standard programs as a key cost mitigation strategy. A friendly reminder to consult your brand resources for processes and protocols implementing and operationally maintaining your large format program.

Avendra can help with additional sustainable options throughout your property including reusable water bottles, natural and organic spa products, and food waste reduction strategies.

Textiles and linens

Hospitality textile health is strong, and inventory healthy. To offer the best guest experience and manage your budget expectation increase par on terry and sheeting whenever possible to assure consistent product and availability through outsourced laundries. 

As we move into 2024, you can expect only slight increases in textiles and linens. In the US, increases are likely to be 1%-2%, with slightly higher impacts in Canada and Mexico. Our recommendation to our customers in Mexico is to order products manufactured in Mexico to reduce freight costs.

Overall, the world price of cotton remains stable following a three-year high and the supply chain remains resilient. We’re watching a few potential impacts including whether the Panama Canal vessel reductions will continue, as well as delays associated with the tensions in the Red Sea shipping lanes causing 2-4 week delays as ships transit around the horn of Africa. 

Building your budget

It’s still early, but 2024 may be a year of more stability in pricing. Geopolitical tensions and strife may cause some disruption in shipping, food security, and energy costs, and an increase in the minimum wage in Mexico will impact prices there, the overall outlook for hospitality is stable.

Avendra remains committed to finding the best quality, best pricing, and best sustainable solutions for our customers. You can rely on the experience and integrity of Avendra’s team to deliver data-driven options that delight your guests and boost your bottom line. Contact us today for a copy of our Q1 2024 Commodity Market Update.

About Jeffrey Simmons

In his role as Vice President of Strategic Sourcing, Jeffrey Simmons brings over 20 years of hospitality experience at the hotel and corporate level and 30 years of procurement expertise to lead the Avendra Rooms hospitality team. 

Jeffrey and his team provide clients and customers with industry leading expertise in all aspects of hospitality procurement from product design and development, strategic sourcing and contracting, sustainable procurement, cost savings, product optimization, logistics, and distribution management and an elevated level of engagement that delivers enhanced client value.