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 which rents and launders linen. The system has both advantages and disadvantages.
Advantages
- 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 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.
Disadvantages
- No individuality.
- The choice is limited – the linen specifications, sizes and standards may be different from those required by the hotel.
- No cut-downs or makeovers 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 co-ordinated with a commercial laundry.