Top Five Characteristics of Financially Successful Spas

By Jane Segerberg Founder & President, Segerberg Spa Consulting, LLC | August 09, 2010

Spas are almost a rite of passage for hotels and resorts. Is your spa not only a rite of passage but also a financially successful asset to your property? A successful spa attracts guests to your resort/hotel, receives high acclaim from guests, contributes to overall guest satisfaction and desire to retire, adds revenue dollars to the overall property and strengthens occupancy rates.

As you can imagine, this article is about numbers and how to raise them. There is one number that we first want to consider and that is the number five. According to Miller's Magic Number, the number seven (or between five and nine) is the number of items which can be held in short term memory at any one time. To ensure that the following characteristics are remembered, the five most important keys to financial success have been selected.

Successful spas are characterized by the following memorable five:

1) The Spa Concept Strongly Defines its Distinguishing Factors

There is no doubt about it; a successful spa exudes a sense of place, a certain feeling, an experience. A simply stated yet strong concept provides the focus necessary to be a leader, to be recognized and create brand loyalty. The concept is the seed from which to build a strong story and additional distinguishing factors for the spa.

The concept guides the spa's architectural program, d'ecor, the service program, the menu of services and special signature features. A strong concept is not developed by copying bits and pieces of existing spa menus or by copying another spa's philosophy. There should be a synergistic match between the spa's concept and the core business and DNA of the resort or hotel property. It also addresses the future needs, wants and desires of a very savvy spa clientele.

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Coming up in February 2018...

Social Media: Engagement is Key

There are currently 2.3 billion active users of social media networks and savvy hotel operators have incorporated social media into their marketing mix. There are a few Goliath channels on which one must have a presence (Facebook & Twitter) but there are also several newer upstart channels (Instagram, Snapchat &WeChat, for example) that merit consideration. With its 1.86 billion users, Facebook is a dominant platform where operators can drive brand awareness, facilitate bookings, offer incentives and collect sought-after reviews. Twitter's 284 million users generate 500 million tweets per day, and operators can use its platform for lead generation, building loyalty, and guest interaction. Instagram was originally a small photo-sharing site but it has blown up into a massive photo and video channel. The site can be used to post photos of the hotel property, as well as creating Instagram Stories - personal videos that disappear from the channel after 24 hours. In this regard, Instagram and Snapchat are now in direct competition. WeChat is a Chinese company whose aim is to be the App for Everything - instant messaging, social media, shopping and payment services - all in a single platform. In addition to these channels, blogging continues to be a popular method to establish leadership, enhance reputations, and engage with customers in a direct and personal way. The key to effective use of all social media is to find out where your customers are and then, to the fullest extent possible, engage with them on a personal level. This engagement is what creates a personal connection and sustains brand loyalty. The February Hotel Business Review will explore these issues and examine how some hotels are successfully integrating social media into their operations.