Why streamlined procurement can elevate the guest experience

Travel and hospitality organizations have had more than their fair share of challenges in recent years, with rising food and energy prices, staff costs, and other inflationary pressures making for a difficult environment.

 

At the same time, rising costs have seen businesses and consumers cut back on discretionary spending. These businesses continue to face fluctuating or seasonal demand and must operate across countries with individual regulatory requirements.

 

Travel and hospitality firms must adapt to these pressures while maintaining high-quality guest experiences. In today’s world of online reviews, organizations can’t risk damaging their reputation through negative feedback or lower standards.  

 

Procurement’s juggling act

 

Those working in procurement teams have a vital role to play in maintaining standards in service and experience. But they must also mitigate the risk of supply shortages as a result of supply chain disruptions. This is a key challenge; according to Amazon Business’s 2025 State of Procurement report, 33% of senior leaders see supply chain disruptions or delays as a factor likely to cause organizational risks over the next two years, second only to the risk of inflation (34%) and cyber-crime (34%).

 

Yet many firms are constrained by inconsistent purchasing practices, with items often being bought as and when required. This prevents organizations from controlling who can make purchases, how much they can spend, and where the money is spent.

 

In turn, this makes it challenging to identify potential savings or develop strategies to reduce shortages through accurate demand forecasting. This can also complicate purchase reconciliation with accounts teams, with items often being reclaimed through expense reports, creating lengthy approval processes and additional work for overstretched teams.

 

Tackling buying inefficiencies

 

Digital procurement offers a solution to such inefficiencies, as well as improving reporting and analysis to help procurement teams assess their overall buying strategies; something 34% of senior procurement leaders identify as a top priority for the next year.

 

Solutions such as those offered by Amazon Business allow travel and hospitality firms to take control of their purchasing. The Guided Buying feature enables administrators to direct buyers to products preferred by the organization, which helps to maintain purchasing compliance even across multiple locations and properties. Procurement and accounts teams get the spend data they require, allowing them to clearly identify what is being spent and plan future requirements to avoid the risk of stock-outs.

 

Businesses can also take advantage of the Associated Accounts Program, which allows franchise partners or members of larger groups to access wider benefits while still operating as their own entity. Such set-ups are particularly common in the travel and hospitality sector, where independent, local organizations may trade under a bigger name.

 

Enhancing the guest experience

 

Until 2023, the buyers of Pyramid Global Hospitality, which operates more than 220 hotels, resorts and conference centers across the US, Caribbean and Western Europe, with revenues in excess of $3 billion a year, used credit cards to make purchases for individual outlets. This created a complicated approval process that would take up large amounts of time for its accounts team.

 

After working with Amazon Business, the group implemented its Pay by Invoice tool, which provided every property with its own purchasing line that can only be spent with approved suppliers.

 

This has helped drive efficiency by providing accounts teams with itemized invoices and 30-day payment terms, helping improve cash flow and reduce unauthorized spending.

 

The organization also uses of Amazon Business Analytics to better understand purchasing needs across individual outlets and identify potential  future savings.

 

Having such information means organizations can make better use of their money and resources, freeing up more capital to improve their services. This can further enhance the guest experience, boost reputation, and drive repeat business.

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To find out more about how Amazon Business could help your travel and hospitality business manage supply chain volatility, visit business.amazon.com/en/industries/travel-and-hospitality