Industry update: Hospitality television supply chain 2022 outlook
Advice for hoteliers and management companies preparing for a hospitality technology purchase in 2022
What do the next 12 months have in store for those with hotel projects on the horizon? According to the country’s largest hospitality technology reseller, KniTec, “reserved optimism”.
Ripples in the supply chain have rocked every industry – hospitality televisions included. The last 12 months have forced hoteliers and technology resellers to wade through stock shortages and price increases.
Back in stock?
“Even now, we’re starting to see some relief with stock levels,” says Brendan Gephart, managing partner at KniTec Enterprises. “We’re seeing reduced lead times compared to this time last year. The main exception is 43” models, which are still backordered for the foreseeable future.”
Unfortunately, it’s not all great news. While stock is returning, it’s still likely to be restrained throughout 2022.
“Manufacturers have adjusted their projections for 2022, but they’re hesitant to overproduce. They’re stuck in this tricky spot of wanting to perfectly meet – but not at all exceed – demand,” says Gephart.
As a result, pricing is still higher than previous years and likely to stay that way throughout 2022. Best advice for hoteliers and management companies preparing for a hospitality technology purchase in 2022?
“I know I’m going to sound like a salesman, but customers should put their orders in as soon as possible. More time gives us – the purchasing agent – more leverage to negotiate the best price with manufacturers like LG and Samsung on our customer’s behalf. It allows manufacturers to confidently adjust their production schedules, especially for larger projects. When they feel more comfortable, we have more room to negotiate.”
“This especially holds true for properties that have a content provider that requires b-LAN technology. These TVs are still susceptible to ongoing chip shortages,” advises Gephart.
Holding out for lower prices in 2022?
“I’d be shocked to see prices on hospitality televisions decrease in 2022 but I also don’t think we’re going to see the kind of hikes we saw in 2021. The best way for customers to protect themselves is to place their order now to lock in current pricing. That puts you in a no-lose situation because if the price drops, we will honour that, and if the price increases, you’re locked in already.”
With the brunt of the price hikes already absorbed by the industry in 2021, hoteliers are looking at a less volatile market for the year ahead.