Par Level
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Par Level

Jun 24, 2023

Par Level is a very important concept for hotels, it is also referred to as par stock. In hospitality management, this refers to everything that a hotel should have in stock on a daily basis to fulfill the guests needs. More precisely, it refers to everything that people staying there or dining in the restaurants could necessitate on a day and how much material or products should be in stock to meet these demands. Since this concept is a very interesting one in hospitality, we would like to explain a little more about it.

 

 

What is Par Level?

As you can imagine, there are different concepts used in the hotel industry and par level or par stock is one of the most important ones. In hospitality there are products that are meant to fulfill the necessities guests might have during their stay, also products that are required to make the stay a  comfortable one, such as sheets, pillows, etc. In other words, hotels need a certain amount of product to accommodate guests in the best way and to provide good service. The expression indicating how much the daily need should be in hotels is called Par Stock.

Why is Par Stock (Level) Important for Hotels?

If you are wondering why this system or concept is so important, we can say it facilitates the life of hotels in many ways and ensures the smooth operation of the system, we can list some of the benefits below:

  • Products are not over-stocked, so there is no deterioration. This is especially important for food.
  • Having the products they need also guarantees that there is more storage space.
  • The required products can be supplied continuously and without any problems.
  • It is easier to do inventory counting.
  • In this way, the business manages its inventory better and provides easier control.
  • The daily needs of the guests are met without any problems.
  • There is no need to spend unnecessary budget for surplus materials.

Inventory Parameters of Par Stocks

As mentioned earlier, par levels are an important estimate for the minimum quantity of a product that should be in stock. In general, the main reason for the creation of these stocks is to ensure that the products are always in good quantity in the hotel stock. Par levels must be set well and necessary inventory controls must be made. For this, the optimum stock level that should be in each product must be determined first.

The concept of in-hand inventory in the Par Level system means the ratio of the inventory and the sales relate to each other. Both the determination of the inventory on hand and the presence of the sales report on hand and their comparison will show you how much product you need to stock in a certain period. Determining the par inventories is not an easy process. People can get extra help from programs and institutions for this.

How can Par Level Application Affect the Activities of the Hotels?

As we have already emphasized, it is an extremely important and effective system. The effects of this application on the activities of the hotels could include:

  • Financial situation must be managed well for a smooth working order. Capital must be used correctly. Not exceeding the pre-determined stock amounts also enables people to manage their financial situations better and to use their capital more comfortably.
  • Excessive storage of the inventory will cause the spoilage of the products, abuse, stealing of personnel and loss of products. In order to prevent these negative situations, a Par stock system that provides stock control is needed.
  • Par Level organization is not just for products such as food. It also needed to have a stock of textile products such as bed linen and towels. Since these products are included in the scope of par stock. You can constantly open clean and high quality linens in your rooms and meet the needs for textile products.
  • Uniforms and accessories of the staff working in the hotel are also included in the par stock. Keeping stock of these is important for easy supply of uniforms when needed.

In general, it is extremely important for a hotel to fully meet the needs of its guests. This is an issue that concerns both the prestige and financial status of the hotel. In addition, it is an important factor in the stable service of hotels. Thanks to the Par Level system, the product status in the hotels is checked. And their inventories are completed easily. This ensures that the service is not interrupted and the products in stock are not damaged. 

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