The hospitality industry has famously thin margins and today’s economic pressures, supply chain uncertainty and rising guest expectations are pushing hoteliers to rethink how they protect their bottom line. While exploring opportunities for new revenue streams is a tempting solution, the faster, more direct approach may be strategic cost savings. After all, a penny saved is like two earned.
Hoteliers can achieve savings incrementally in many areas of operations, but making a real impact without affecting the guest experience is tough. Procurement stands out as one of the few places where hotels can save money without sacrificing quality or brand standards, especially when approached strategically. There’s also a strong link between procurement efficiency and resilience during economic downturns, making it one of the smartest areas to optimize operations. And unlike revenue, which must balance cost of service, every dollar saved through procurement goes directly to the bottom line.
Here’s how hoteliers can rethink procurement to unlock savings, improve margins and gain more control over the process:
Rethinking Procurement
Hoteliers need to recognize that procurement is more than an operational task—it’s a key lever for cost control and long-term performance. Yet in many hospitality organizations in the U.S., procurement is still handled by chefs, housekeeping managers or other staff who are already stretched thin. They place orders because they have to, not because it’s part of a bigger plan for the business, often with little time or data to support the decisions they’re making.
The result? Missed opportunities, inconsistent purchasing and rising costs.
Forward-thinking hospitality teams treat procurement differently. Instead of just reacting to immediate needs, they’re using technology to centralize purchasing, improve visibility and make smarter decisions across locations.
With the right tools in place, hotels can track spending, streamline workflows and uncover cost-saving opportunities that wouldn’t be visible through spreadsheets or other fragmented tools. When procurement is managed proactively, not piecemeal, it becomes a powerful driver of margin improvement and operational consistency.
Visibility Changes Everything
It’s nearly impossible to make smart purchasing decisions if you can’t see what’s happening on your property or across your portfolio. Even a simple question like “How much are we spending each month?” often requires input from multiple teams and a dive into accounting just to get a rough estimate.
That’s why more hotels are turning to procurement technology. The best tools bring all your purchasing data into one place and integrate with your existing technology stack—PMS, POS, accounting, forecasting and AP—so you’re not chasing numbers across siloed systems.
With visibility into spending, inventory and supplier performance, teams can prevent over-purchasing and stockouts, track usage in real-time and identify opportunities to buy smarter without compromising brand standards. Some tools even allow teams to filter product selection for characteristics like sustainability or other operational goals.
As procurement platforms evolve, they’re becoming more predictive, using data to anticipate needs and automate routine purchases. But to unlock that value, everyone involved in purchasing needs to be part of the process, including operations, food and beverage, finance, housekeeping and general managers.
The most powerful procurement tools give stakeholders visibility into what’s being ordered, when, and why, so the whole team can make smarter, faster decisions that protect margins and improve consistency.
The New Standard
In 2025, rethinking procurement isn't just smart, it’s necessary. Market uncertainty, supply chain disruption and rising costs are pushing hoteliers to look inward for stability. And the fastest way to strengthen margins without cutting corners is by gaining control over how money is spent.
This starts with visibility. When teams can see purchasing patterns clearly, they can make decisions that are proactive, not reactive and that insight creates long-term value. Whether through better processes, better technology or both, procurement has become one of the most important tools hotels have to protect performance and stay resilient.
Henrik Shimony is the CEO and co‑founder of hotel procurement and payment processes technology company Reeco.