How Hotels Can Benefit from Group Purchasing Organizations?

Introduction of Group Purchasing Organization Hotels

Group purchasing organization hotels may represent a good opportunity for hoteliers to make deals with physicians, laboratories, and hospitals providing discounts on medical supplies, nutrition, or pharmacy. They may also offer discounted medical services.

The Hospitality sector is one of the sectors where Vietnam is outstanding in terms of numbers of tourists, number of rooms available, attractions, and hotels. The Sector comprises a wide range of businesses; including five-star hotels, four star hotels, three star hotels, luxury beach resorts, and seaside resorts.

A recent US study ranked Vietnam as the best country in Asia for both low cost and moderate cost tourism with 96% of its population classified as middle class and a per capita income level that was estimated at over US$1,000 per month (US$1,50. In addition to the availability of low-cost hotels with different standards and quality levels, the country’s ambitious tourist development.

What Is Meant by Group Purchasing Organizations for Hotels?

Group purchasing organization hotels (GPOs) are businesses that help hotels manage their purchasing needs by linking them with suppliers. The benefits to hotels of joining a GPO include access to a wider range of products and services; increased efficiency in procurement; and the ability to negotiate better prices. Group Purchasing Organization for Hotels (GPO) can help hotels save money on procurement by pooling resources and negotiating discounts with suppliers. In addition, GPOs can provide marketing and distribution resources for hotel brands. What is meant by the ‘no-cancel’ clause? This clause prohibits a hotel from canceling an agreement with a supplier unless the supplier is in breach of contract. It also gives suppliers the right to cancel orders where there are technical problems (eg, they cannot deliver).

What is the best way to negotiate with a supplier? Most hotels should use standard negotiation techniques such as avoiding emotional responses and maintaining objectivity during negotiations. However, if you have strong feelings about something, avoid becoming too emotional or angry and take your time when making decisions that affect your business.

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