"We believe most procurement by the hotel industry will take place online within the next 10 years," says Jack Corgel, managing director of applied research for HRG and one of the paper's authors.
The white paper was based on a comprehensive study HRG did for hsupply.com during the first quarter of 2000. The firm set out to determine the size of the market for products used in hotels by product category, hotel market segment and geographic region. Among the findings:
In addition to helping procurement companies measure the size of the market, the findings of the study provide useful benchmarking data for hotel managers.
"By segmenting the data into a variety of product categories, a hotel operator has the opportunity to compare their property's procurement expenditures against the average for other hotels of similar marketing orientation and geographic location," says Corgel. "This is becoming a crucial model for hotel managers given the strong desire to use the Internet for supply-chain management."
By Megan Rowe