The effects of the pandemic are still having a major impact on the world as it is now almost two years old. Luckily, travel has started to pick up as people have started to move forward with their lives again. Many properties should expect to see bookings improve this year compared to the past two years. However, they will still be confronted with issues pertaining to the economy for the coming busy season. This is an issue that pertains to companies in many industries, so hospitality isn’t just an exception. Inflation will continue to be rampant, supply chains will have issues, and labor shortages may persist throughout 2022.
Inflation will affect inns, bed and breakfasts, vacation rentals and other parts of the hospitality industry economy. Across the United States, rent prices are increasing significantly. Along with that, travelers should be preparing for higher hotel costs when booking a room this year. There is not necessarily a lot that the hospitality industry can do to combat this. The cost of ordering goods is increasing, employee labor expenses are going up, and there is an increase of transportation costs in the supply chain. The topic of inflation and its effect on the economy has been a hot topic in the news lately, so travelers will at least be aware of the recent spike in prices across many industries. So, it shouldn’t come as a huge surprise to them if they notice booking rates have increased.
The disruption to the supply chain industry has had negative effects on many industries including hospitality. The pandemic has caused many disruptions to the shipping process and the economy. At the beginning of the pandemic, spending habits shifted as people began spending less money on going out to restaurants but instead ordering treadmills and desks for their homes. The increase in online ordering resulted in not enough ships, ports, and warehouses being available to handle the demand and change to the economy. COVID-19 is not solely responsible for this either. The growth of e-commerce has shifted the economy and accelerated the issue initially caused by the pandemic. Traditionally, major corporations would ship products to central warehouses that would transport them to retail locations, but e-commerce has placed that responsibility on companies like Amazon and Lowes to deliver the products directly to homes and businesses. One solution is to build more warehouses, but many large urban areas like New York City and Los Angeles do not have the land space needed to develop them. To go along with that, the lack of port availability has caused cargo vessels to sometimes remain waiting at sea for days and possibly weeks at a time.
Lack of Workers
The pandemic has caused many wage earners to rethink their current employment situation. At the beginning of the pandemic, many people lost their jobs or were furloughed. This gave people an opportunity to take a step back from their daily work routine and rethink their goals in life. This led to some choosing to not return to their old job or industry and pursue other goals like starting their own business or looking for higher paying jobs in the economy. The shipping industries like trucking and warehouses have been struggling to find workers. This has resulted in orders arriving later than expected. Companies have tried solving this problem by offering wage increases and signing bonuses, but labor supply is still short throughout many sectors in the economy.
How to Handle this Tricky Situation
- Purchase supplies well in advance of when you normally would to provide extra time if there are shipping delays.
- Order larger amounts of products like bed linens or amenities than you normally would because they may not be available the next time you place an order.
- Create signs that let customers know that there are lower staff levels than usual, and to help them be patient and expect delays.
InnStyle is Here for You
InnStyle is closely following how these issues are effecting the hospitality industry. Staff members are working with suppliers for lead times about products that are currently out of stock. Notes have been put on their website to inform customers if certain product sizes or colors are unavailable. Customers are more than welcome to give their account manager a call to see if they know about lead times for products that are out of stock. If you have any other hospitality-related concerns, please give InnStyle a call. They can be reached at 267-354-6020 or 800-877-4667. Their website is https://www.innstyle.com/.