Page 11 - aruba-today-20220214

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business Monday 14 February 2022
How supply chain issues are crushing hotels — and your stay

By SALLY FRENCH of Nerd-
Wallet
For many, supply chain is-
sues mean something like
the grocery store is out of
oat milk, so you're stuck
with soy instead. For hotels
— an industry already hit
hard by the COVID-19 pan-
demic — supply chain is-
sues are causing even big-
ger problems.
Vimal Patel knows this all
too well. Patel is CEO of
QHotels Management,
which operates franchises
of hotel brands, includ-
ing some Hampton Inn,
Holiday Inn and Best West-
ern properties. Lately, he's
scrambling to find towels,
shampoos, notepads and
other supplies his hotels run
through (and run out of)
due to supply chain prob-
lems.
"Ever since the pandemic, The sun sets behind The Mediterranean Shipping Company ship MSC Meline, front, which is in the process of being loaded at the
serving paper products like Virginia International Gateway Marine terminal Wednesday Dec 1, 2021, in Norfolk, Va.
plates and napkins, as well Associated Press
as food itself, has become Most of Patel's properties it's hard to tell a customer, gling to fill open positions. anticipated because of
a huge problem — and are franchises of larger 'We don't have that,' so And for an already over- COVID-19.
a customer service chal- brands and require con- sometimes you just have to worked hotel employee, WHAT TO EXPECT DURING
lenge," he says. "Guests of- forming to brand stan- make it work," he says. dealing with a customer YOUR NEXT HOTEL STAY
ten don't understand why a dards. Patel typically orders COSTS ARE HIGHER upset about their undersize Travelers are returning, but
product is unavailable." items from an approved The entire nation is witness- coffee cup can be extra labor and materials still
Things got heated at one of vendor, which previously ing inflation — and hotels challenging. haven't — and the outlook
his hotels, which advertises took about 48 hours to ar- are no different. CONSTRUCTION CHAL- isn't exactly promising. Of
12-ounce cups of coffee. rive. Hotels reported a 79% cost LENGES COMPOUND THE the AHLA survey respon-
"We could only find 8-ounce "Now, it can take months," increase on day-to-day PROBLEM dents, 36% said they expect
cups, and we couldn't find he says. "You're lucky to get cleaning and housekeep- The coffee chaos was small supply chain disruptions to
any lids," Patel says. "We it within three weeks." ing supplies, a 77% increase beans for Patel's business, last at least another year.
had to use a substandard Towels are typically reor- for linens and other soft which operates in Louisi- For travelers, that means
cup, because that's all we dered every other month, goods, and a 77% increase ana. Nearly half of his prop- anticipated renovations
could get. That was deeply as they get discolored af- in food and beverage erties are closed due to might not have even start-
upsetting to some custom- ter enough use (and some supplies, according to a flooding and roof damage ed. It means you might not
ers." just disappear). Yet, bulky November 2021 survey of in the aftermath of Hur- have the exact amenities
For weary travelers seeking items like these are tough about 500 hotel operators ricane Ida. He says local you're used to — and that
to caffeinate, lidless coffee to stockpile, since most ho- conducted by the Ameri- home improvement stores sometimes, the amenities
might feel like a reason to tels have limited storage can Hotel & Lodging Asso- are out of materials, and you expected will not be
leave a one-star review, space. ciation. construction workers are available, period. Patel
especially for unpracticed "We'll have a family of four STAFFING ISSUES ARE ON- tough to hire. says he hopes customers
travelers who might not be use all the towels in the GOING While the hurricane brought will understand the chal-
accustomed to the myri- morning, and then ask for a In a separate AHLA survey extra challenges for Louisi- lenges that the hotel indus-
ad COVID-related travel second set in the evening," from October 2021, 94% of ana businesses, hotels na- try faces.
changes. But here's why he says. "Sometimes we just respondents said their ho- tionwide are experiencing "We're not cutting corners
there's no point in crying don't have enough." tels are understaffed (in- construction-related issues. because we're trying to
over spilled milk. Amid the coffee cup short- cluding 47% who say they In the first year of the pan- nickel and dime," he says.
HOW SUPPLY CHAIN ISSUES age, Patel had to send an are severely understaffed). demic, many hotels put off "It's simply the situation
AFFECT YOUR HOTEL STAY employee to Costco to buy Additionally, 96% of hotel planned renovations. we're in."
DELIVERIES CAN TAKE AN whatever cups they could operators said they are try- Now, it might be too late And just as a hotel likely
UNPREDICTABLY LONG TIME find. "With basic necessities, ing to hire, yet are strug- to renovate without going wants you to feel like you're
over budget. Construc- at home, Patel says he
LIKE US ON tion material costs jumped hopes people realize the
supply chain shortages felt
nearly 20% in 2021, accord-
ing to an analysis by the As- at home are hitting his in-
sociated General Contrac- dustry too.
tors of America. In a sepa- "Whether it's finding grocer-
rate AGC survey from win- ies or a roof for your own
ter 2021, 90% of contractors home — they're the same
attributed such issues to the challenges that businesses
Facebook.com/arubatoday/ supply chain, and 72% said are facing, but 10 times,"
projects take longer than he says.q