By leveraging its group buying power to achieve cost efficiencies for its franchisees, Choice Hotels Asia-Pac is building strong supplier relationships that deliver quality products and innovations for the group.

Tapping into group buying power can make a significant difference for hotel operators when sourcing day-to-day products and investing in capital equipment. One of the key benefits for Choice Hotels franchisees is leveraging national and global buying power on these expenses.

As part of Choice Hotel’s commitment to improving operational efficiency and reducing costs for its franchisees, the group has developed a robust procurement program that streamlines the sourcing and purchasing process for hotels.

The program centres around an online store – The Marketplace – that gives franchisees access to everything from in-room breakfast packs to bathroom amenities, beds, and Smart TVs.

Choice Hotels Asia-Pac CEO Trent Fraser says The Marketplace streamlines the purchasing process for franchisees, making it easy to meet brand standards. Choice Hotels Marketplace gives franchisees a centralised platform for ordering, tracking, and managing their procurement activities, with the added benefit of a single itemised account each month rather than multiple invoices from each supplier. 

“We have automated many of the time-consuming processes that come with trying to source each product on your own, making sure the suppliers we work with, and their products, are the best available,” he says.

The Marketplace makes purchasing easy, ensuring:

Time savings: a one-stop-shop for everyday items that otherwise mean negotiating with multiple suppliers, such as food and beverage, and uniforms.

Single invoicing: all purchases consolidated on a monthly invoice, with 30-day payment terms.

Group buying power:  franchisees benefit from national and global contracts and economies of scale. 

Additional negotiated savings and benefits; from free consultations, discounted or free freight, and ongoing maintenance services. 

Consistent quality: ensures franchisees get the best quality products.

Dedicated account managers: personalised advice and assistance with orders.

Brand consistency: from uniforms and stationery to hotel signage, everything is correctly branded and consistently high quality.

“The Marketplace, as a one stop shop for franchisees, has helped Choice Hotels enhance supplier relationships and secure contracts. This has resulted in stronger, more collaborative relationships with suppliers, improved product quality, reduced costs, and increased innovation,” says Mr Fraser.

An example is a collaboration with Hunter Amenities and Soap Aid to introduce a range of large-format amenities across the group, meeting the group’s goal to reduce plastic waste. At the same time, hotels are supporting the charity in its mission to improve hygiene in impoverished communities around the world.

“Our large format products will reduce single-use plastic use by as much as 83 percent per room, per year, equating to 7.8 kilograms of plastic per room per year, and reducing amenity costs by almost 10 percent,” Mr Fraser says.

For more information about The Choice Hotels Marketplace and the many other services Choice Hotels Asia-Pac’s offers its franchisees visit joinchoicehotels.com.au