Hotec Global releases Buyer Sentiment Insights Report

Hotec Global, a sister company of Hotel Management, has released its first Hotec Buyer Sentiment Insights Report, a quarterly survey of the company’s global database of hospitality buyers and designers.

The Q4 2021 survey, conducted from October to December, reached out to senior executives from hotel chains, management companies, purchasing companies and interior and architectural design firms. Participants were asked a series of questions gauging their opinions on the state of the industry, future trends, challenges they’re currently facing and solutions they’re sourcing.

Despite hurdles like shipping delays, material shortages and cost increases, the overall sentiment is positive with 81 percent of respondents predicting an improvement in economic conditions this year. No respondents predicted economic conditions to deteriorate significantly. 

89 percent expect procurement budgets to increase or stay the same year over year. Eighty-four percent expect to see an increase in projects, while 13 percent expect a recalibration in the way hospitality design is approached. 

Products, Priorities & Solutions

Respondents noted several products and solutions that they are currently researching and/or purchasing, including sustainability solutions, cashless payment solutions, sanitary fixtures and quick-ship products.

Among the biggest COVID-19-related challenges affecting buyers, respondents noted material shortages, shipping delays and cost increases as hurdles to overcome. Similarly, respondents also cited supply chain challenges, staffing issues and material cost increases as trends from 2021 they expect to continue to impact 2022 and beyond.

The buyers did find solutions for these challenges throughout the year, however, citing temp agencies, Paycheck Protection Program loans and salary cuts as tactics to stay afloat. Some pivoted to refurbishment projects or used domestic products during the year, while others negotiated prices more aggressively. 

Forty-four percent of respondents said that sustainability is “somewhat important” to the hotel owners with whom they work, while 34 percent said it was “very important.” The remaining 20 percent was divided among “neutral” (13 percent), “somewhat unimportant” (3 percent) and “very unimportant” (6 percent), suggesting that sustainability is and will continue to be a significant factor in design, development and procurement. 

Looking Ahead

Among the main challenges still facing buyers, an overwhelming number (68 percent) of respondents noted supply chain shortages as the top issue. Budget cuts followed at 16 percent, and the remaining 16 percent was followed by staff cuts and “other” problems. “More, more and more” hotels are reusing existing items rather than purchasing new, one respondent commented, while another said they were having trouble “finding people” as the Great Resignation goes on.

To adjust to the supply chain issues, respondents said they would use “readily available” products, acknowledge longer lead times and source locally. They would also look to curate relationships with trusted vendors and have a plan B for potentially problematic purchases.