The industrial laundry market in the Philippines is growing rapidly, with a market size of PHP 1.82 billion in 2023 and projected revenue of PHP 4.89 billion in 2024. The market is expected to grow at a CAGR of 3.4% from 2023 to 2030.
The post-pandemic increase in concerns for cleanliness and daily health in the hospitality sector has stimulated market growth. The use of chemicals/detergents and essential resources has increased, which has had a significant impact on the environment. This has highlighted the urgent need for smart technological advancements in laundry that can operate with minimal resources such as water, energy, and chemical detergent.
According to the Department of Tourism of the Philippines, there are 745 hotels in Metro Manila as of 2022.
There are 134,365 rooms in 3-star hotels; 144,994 rooms in 4-star hotels in Metro Manila; and 136,109 5-star hotel rooms in Metro Manila.
The decision of whether to outsource laundry services or to have an in-house laundry facility is a complex one for hotels. There are a number of factors that need to be considered, including:
The size of the hotel: Larger hotels with a high volume of laundry may be better off outsourcing their laundry services.
The cost of labor: The cost of labor can vary depending on the location of the hotel and the availability of skilled workers. Outsourcing can be a way to reduce labor costs, but it is important to factor in the cost of transportation and other expenses.
The availability of resources: Hotels that are located in areas with limited water or energy resources may be better off outsourcing their laundry services to a facility that is better equipped to manage these resources.
The need to focus on core competencies: Hotels that want to focus on their core competencies, such as guest service or food and beverage, may be better off outsourcing their laundry services to a specialist.
In recent years, there has been a trend towards outsourcing laundry services. This is due to a number of factors, including:
The increasing cost of labor: The cost of labor has been rising in many parts of the world, making it more expensive for hotels to operate their own laundry facilities.
The availability of specialized laundry equipment: There are a number of specialized laundry machines and equipment that can be used to process large volumes of laundry efficiently. These machines are often not available to hotels that operate their own laundry facilities.
The need for hotels to focus on their core competencies: As mentioned above, hotels that want to focus on their core competencies may be better off outsourcing their laundry services to a specialist.
With the rise of resource limitations, it is likely that more hotels will consider outsourcing laundry services. This is because outsourcing can help hotels to reduce their water and energy use, and it can also help them to comply with environmental regulations.