Prior to the past two decades, only the most exclusive hotels featured spas. However, they can be found in hotels of all sizes today. When the spa boom began, hotels believed that adding a spa would be a simple way to attract guests. As the installation of spas to hotels became increasingly widespread, spas lost their exotic attraction.
Due to competition and desperation, hotels expanded and embellished their spas. Profitability grew ever more difficult as expenses increased. Even now, many hotel owners struggle to earn a satisfactory return on investment.
“Following years of considerable economic, financial, and geopolitical instability, the worldwide spa and wellness business is not only surviving, but growing. The Global Spa & Wellness Economy Monitor has revealed data indicating that the industry is stronger than ever, with an annual growth rate of 7.7 percent.”
Depending on how it is managed, the hotel spa is either a cost centre or a profit centre in the modern world. If each function might be advantageous for the hotel, it is necessary to identify which one a hotel intend to pursue, why, with whom, and in what context.
The spa is now a standard facility in the luxury market. Naturally, the motivations of resort guests differ from those of urban hotel guests, and spa visits are more prevalent in resorts. Urban hotels can also capitalise on this desire, but they must alter their offers to emphasise either comprehensive wellness programmes with a substantial fitness and nutrition component, or shorter beauty and pampering services. The potential for membership sales is also a crucial financial factor for urban spas.
Spas can still be a vital element of the establishment despite the problems. To successfully operate a spa, one must learn from the errors of others and incorporate them into the design of their spa.
Spa managers can design, consult, and advise. Once established, he/she can oversee spa operations. If a hotel hires the correct individual, this option provides a spa manager. With the wrong person, one may not discover his/her flaws until they’ve affected the spa’s development.
Hotel management businesses handle spas. They use a management contract or revenue share arrangement. A management contract model gives the company a share of gross operational income and profit. With a revenue share arrangement, the company receives top-line revenue. This option relieves the hotel of most day-to-day spa operations, allowing its manager to focus on other matters. However, it means less spa choice control. Another option involves contracting with a product house, which is a skin care or cosmetic brand that will run the spa under its own name.
Add-ons or spa enhancements are another way to directly increase your average ticket and bring in additional revenue. Look at offering a wide selection of add-on options and allow guests to select from a list of enhancements that can be added to their service without increasing the appointment time.
Spa services and self-care make great gifts. Offering spa gift certificates for treatments, packages and series, or set monetary amounts is essential to securing advanced revenue. In addition to offering gift cards or physical gift certificates in the spa, online gift certificates are a great option. Around the holidays people are always looking for quick gift ideas that they know their loved ones will appreciate.
Packages and series are also great options for local guests to purchase for themselves and take advantage of discounted services when purchased in bulk. This helps to keep guests coming back and to fill up your downtime if you place restrictions on when they can be redeemed.