More Than 70% Experiencing Increased Costs, Lack of Availability for Key Items
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, according to a new survey of American Hotel & Lodging Association members.
Eighty-six percent of 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. Seventy-four percent say supply chain issues are having a negative impact on business revenue.
The impact on operations could have repercussions for employment, underscoring the need for targeted federal relief for hotel employees, such as the Save Hotel Jobs Act.
“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.”
Respondents do not expect the supply chain disruptions to be resolved any time soon, with 46% saying they expect disruptions to last six months to a year and another 36% expecting them to last more than a year.
Other survey highlights include:
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%
The survey of more than 500 AHLA members was conducted November 8-22, 2021.
Download a One-Pager of Survey Findings here.