With the rapid expansion in the spa industry within hotels and resorts and its relevance to hotels’ bottom line, new trends have come up in response to it.
FREMONT, CA: The spa revenue has increased at a higher rate compared to room revenue and total operating revenue. Wellness is a rising desire in the minds of the guests, and hotels can capitalize on this trend. The hotels are diversifying their spa and wellness offerings to generate more revenue, but it is essential to look at the mix of customers. While observing the urban hotel spas, the customer segmentation varies in that the percentage of locals is higher at 61 percent. This shows that there is an opportunity for the hotel owners to offer packages to attract the local community to avail and experience the hotel spas for various services. Additionally, there is also a probability of converting these local patrons into members and creating a steady income stream.
Most of the Resorts hotels are located outside the hustle and bustle of the cities. Therefore, they are dependent on their overnight guests to patronize the spa facilities. Knowing the customers is very important in order to refine the treatment menu and ensuring the hotel spa is offering proper services and a mix of facilities.
Revenue and profitability improvements were noticed in all hotel spa categories; the hotels with less than 200 rooms showcased the highest increase in revenue at 13.3 percent, also had the highest increase in profit at 12.5 percent. For the very first time in seven years, the resort hotels displayed a substantial increase in percentage in spa department profit in comparison to 2.3 percent at urban properties. This occurred even though labor costs increased greatly at resort properties compared to urban properties.
In the contemporary environment, hotel spas have to combat ongoing challenges, like the emergence of social media and a tight labor market. The evolution of review sites and social media has elevated customer expectations and enabled the customers with an influence on the success of hotel spas. Although the consequences can turn out to be favorable, just a bad review can harm the hotels' reputation. Hotel spas will successfully operate with the adoption of cost-reducing initiatives, cross-training, and customer-centric offerings.