Hiring linen is uncommon in India, but many hotels in other parts of the world do not purchase linen and prefer to hire laundered linen from a hiring company. Linen hire companies supply clean linen to hotels on a hire basis. Thus it is a contract with a company that rents and launders linen. The system has both advantages and disadvantages.
Initial purchase investment is eliminated.
No laundering of linen is necessary.
Less storage space.
Less staff which means fewer salaries to pay.
No need to order linen so the purchase function is eliminated.
No repairing of linen by the hotel.
It is ideal for spasmodic trade such as seasonal hotels, by avoiding capital expenditure and the need to store seldom-used linen.
Linen hire charges may be no greater than the combined depreciation and laundering costs.
The choice is limited – the linen specifications, sizes and standards may be different from those required by the hotel.
No cut-downs or makeovers are possible.
Damages have to be paid for, usually at a higher rate. u
The hotel is totally dependent on the hiring company.
There is no control over the quality of the wash.
Linen supply may be affected by bad weather or strikes causing a breakdown in operations.
If low occupancy, there is a loss due to unused linen.
The excess requirement is charged at the current rate.
Guest laundry will have to be dealt with or coordinated with a commercial laundry.