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The COVID-19 crisis has disrupted businesses worldwide. And, tourism and business travel were among the hardest hit. So, how do supply and demand look in the hospitality hardware industry?
That’s an excellent question for hotels taking advantage of the pandemic break to upgrade and renovate facilities. With occupancy levels low, renovators have the perfect opportunity to modernize and improve hotel spaces.
Pre-COVID-19 Hospitality Supply and Demand
Before the 2020 COVID-19 Pandemic, the hospitality hardware industry enjoyed healthy commerce. Of course, tourism and travel was booming. For example, international tourist arrivals had quintupled since 1983, from 281.8 million, up to 1.4 billion in 2018.
And, the conditions were perfect. Increasing disposable income led to more vacations and travel overall. In addition, new travel trends resulting from globalization had created more options. Increased liquidity through electronic payments has also made transactions a snap.
And, prior to the COVID times, no one fretted much about supply and demand for hospitality hardware. Suppliers met heavy demand with steady and timely delivery day-to-day.
Hospitality Hardware Supply and Demand in Times of COVID-19
But times have changed since the arrival of COVID-19. And business and pleasure travel have suffered greatly.
Government-imposed restrictions have disrupted both supply and demand in the industry. A Global Business Travel Association member survey found that most businesses had changed travel plans. For example, many businesses canceled flights: more than 94% domestic and 97% international.
The COVID-19 crisis hit hotels, restaurants, and the rest of the hospitality industry hard. Among hotels, nearly nine out of 10 laid off or furloughed staff. Many anticipate returning to pre-COVID staffing until 2021 too.
Not surprisingly, demand for hospitality hardware has also waned. And, the COVID-19 crisis has forced hospitality hardware suppliers and buyers to change habits. For example, the Center for Disease Control (CDC) guidelines have become part of company culture, so hotel hardware businesses have masked up. Now, company policy includes new rules to ensure the safety of employees, staff, and customers. Hardware packers take special precautions to keep hardware virus-free and ready to ship.
Not only do suppliers have new game plans, but parcel carriers play a critical role in the delivery of orders, too. They, likewise, have CDC guidelines onboard. And, as we’ve all experienced, the COVID threat temporarily upset staffing and logistics, and shipment delays are commonly occurring.
Also, the down surge in face-to-face shopping has heightened e-commerce demand. Many parcel carriers now face increased demand for delivery and online ordering. Parcel Spend Management solution provider, Green Mountain Technology, stated, “Unfortunately, new demand also means limited supply.” While it could exasperate delivery problems, leading carriers must adapt.
As for hospitality hardware, supply meets the COVID-limited demand. And, in some cases, supply may exceed current demand. Yet, while delivery delays can occur, stock availability plays a less critical role in this industry.
What’s Coming After COVID-19?
Once the government lifts the coronavirus lockdown, travelers will form post-COVID habits. While the virus has disrupted worldwide supply and demand, some businesses are adapting. And the survivors will have an even better grasp on logistics than before the pandemic.
Likewise, business and pleasure travel will increase. And, capturing the eye of the first guests to check in can give your hotel an edge over the competition. So, architectural hardware upgrades during the pandemic slowdown still make sense.
Archmaster
At Archmaster, we are grateful to be serving customers as usual. And, you can find architectural hardware in stock. If your hotel business is upgrading during the pandemic, you can count on Archmaster.
And, we want to help you celebrate your renovations during June. So, we are offering a 30% discount on select items until the end of the month. Contact us today!