Meet the experts
Grandeur Hotel general manager Anwar Hussain
Dunes Hotel Apartments general manager Faisal Abdul Rehman
Comfort Inn Hotel general manager Hirosh Asuhar
Gloria Hotels area general manager Freddy Farid
Al Khoory Hotels hospitality group general manager Pierre Sokhon
Louvre Hotels group assistant financial controller Philip Eappen
Mark Nogal Hilton regional head focused Service brand management, EMEA
Rotana Centro Sharjah general manager Michael Kasch
Time Hotels CEO Mohamed Awadalla
Al Bustan Centre and Residence COO Moussa El Hayek
Riyada international Hotels & Resorts director of operations Saudi Arabia Raji Abou Ghanem
Lemon Tree Hotels deputy managing director Rattan Keswani
Al Maha Arjaan by Rotana general manager Sherif Madkour
What challenges do hoteliers face when sourcing new suppliers?
Pierre Sokhon: The challenges differ from international chains to local chains, largely because in local chains and small three-star properties, the hotels have limited resources and capabilities. At Al Khoory Hotels, our most common challenges are: finding the right supplier for the product, lack of resources and data and comparing the product to those offered by other suppliers. Additionally, the price factor remains a challenge when sourcing new suppliers, as does negotiating terms and conditions of contract.
Hirosh Asuhar: It is tough to find new suppliers that can provide the same brand, quality, timing and pricing that we have come to expect. The quality of the product has to match with our requirements and expectations and it has to compare favourably to the old product. Delivery times and replacement policies have to be taken care of too, in addition to challenges associated with obtaining credit.
Mark Nogal: Making sure suppliers are good quality is a challenge, as is leveraging our buying power in new areas and finding good suppliers. To overcome these challenges we will request samples from vendors in order to make sure both quality and cost are suitable.
Anwar Hussain: In search of new suppliers, we face challenges in terms of getting a suitable credit facility period, ensuring high product quality and ensuring suitable supply time-frames.
Freddy Farid: Procurement in general needs to demonstrate it can contribute to the top line as much as the bottom line. Dealing with suppliers requires time to build trust and conduct market research. Current issues we are facing include product liability, product availability, lack of post-sale services and commitment by suppliers to meet deadlines.
Vishal mehra: Hoteliers face strong competition in the market with competing hotels offering lower rates, higher discounts and more amenities with the room to secure a higher percentage of the production. Thus forcing other hotels to follow the same trend to compete when sending proposals to potential suppliers. High margins and monthly fees requested by the supplier, leading to a reduction in GOPPAR are also an issue.
What are the top reasons why hoteliers change suppliers?
Anwar: The top reasons why we may change our suppliers include rate increase, price changes during the contracted period, product quality changes, suppliers failing to meet the demand or supply full quantity, in addition to
late delivery within the stipulated time.
Hirosh: We try not to change our regular suppliers due to the level of comfort we have between hotel and suppliers built up over long periods of time. Only when we end up with major issues like the price regularly fluctuating due to low production, the product is not up to the expected standard or because of the market downturn and low budget, then we are forced to find new suppliers who can provide same quality with better price.
Mark: Issues regarding suppliers meeting hotel demands can lead to a hotelier changing suppliers. A supplier must be able to keep up with the rate of new openings in a region, failure to do so can result in lost revenue.
Furthermore, quality issues should be addressed quickly and the guest must never be negatively impacted by supplier issues. Sherif Madkour: Every hotelier has their own likes and dislikes when it comes to products and suppliers. The top reasons for changing suppliers would include noncompliance of standard or quality, difference in costs and having a specific requirement that existing suppliers cannot meet.
Vishal: Hoteliers may change suppliers when the guaranteed production promised by the exisiting supplier fails to materialise (especially with smaller supply companies). This can leave the hotel general manager having to invest time and effort into proper system setup and additional training etc.
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