HOTEL BUSINESS REVIEW

July FOCUS: Hotel Spa

 
July, 2017

Hotel Spa: Measuring the Results

As the Hotel Spa and Wellness Movement continues to flourish, spa operations are seeking new and innovative ways to expand their menu of services to attract even more people to their facilities, and to meet guest expectations. Among many new developments, there seems to be a growing emphasis on science to define and measure the results of spa treatments. Whether it's spa, fitness, wellness or beauty services, guests are becoming increasingly careful about what they ingest, inhale or put on their skin, and they are requesting scientific data on the treatments they receive. They are open to exploring the benefits of alternative therapies - like brain fitness exercises, electro-magnetic treatments, and chromotherapy - but only if they have been validated scientifically. Similarly, some spas are integrating select medical services and procedures into their operations, continuing the convergence of hotel spas with the medical world. Parents are also increasingly concerned about the health and well-being of their children and are willing to devote time and money to overcome their poor diets, constant stress, and hours spent hunched over computer, tablet and smartphone screens. Parents are investing in wellness-centric family vacations; yoga and massage for kids; mindfulness and meditation classes; and healthy, locally sourced, organic food. For hotel spas, this trend represents a significant area for future growth. Other trends include the proliferation of Wellness Festivals which celebrate health and well-being, and position hotel spas front and center. Finally, look for the Korean beauty movement to maintain its position as a world leader in affordable, innovative, and well-marketed cosmetic products for both women and men. The July issue of the Hotel Business Review will report on these trends and developments and examine how hotel spas are integrating them into their operations.

This month's feature articles...

Bryan Green

A tremendous opportunity exists today for hotels and resorts to once again raise the bar and incorporate experiences crafted around trends that are presently driving the fitness industry. Today's best operators know that the lines between the commercial health club offering and the hospitality based fitness center are becoming increasingly blurred. In the world of fitness, two significant trends are driving the landscape by which new facilities are born, and existing spaces re-imagined: Functional Training & Technology. Together, these two factors are powering the emergence of socially driven exercise and virtually guided training sessions that are shaking the landscape of nearly every aspect of the fitness industry. READ MORE

Mia Kyricos

Travel and tourism remains one of the world's largest industries, representing over 10% of global GDP and forecasted to grow 3.7% in 20179. Wellness Tourism, or travel associated with the pursuit of maintaining or enhancing one's personal wellbeing, is growing twice as fast as the overall sector, and exists at nearly a $600 billion global enterprise. In her annual contribution to the Hotel Business Review, Mia Kyricos, an expert in wellness-driven hospitality, gives us the status of the wellness tourism industry as we know it today, as well as a glimpse of what new opportunities exist on the horizon. READ MORE

David  Stoup

Properly operated hotel spas provide an owner the opportunity to boost property profits while driving additional value through the implementation of robust Social Media and Public Relations programming, and the sale of incremental, attractive room packages. The question is: are you providing your spa with the support and experience necessary to achieve these objectives? Unfortunately, it is all too common for Hotel Spas to be under-performing in some, if not all, the above categories. If that is the case, a spa asset manager may be a worthwhile investment for your property. READ MORE

Martin Kipping

At Viceroy Zihuatanejo, in 2015, I began forming a new vision for our resort spa to help guests achieve true wellness. I knew we needed to offer much more than just providing traditional spa treatments and services because achieving true wellness would require a resilient attitude and rejuvenating lifestyle to help balance our guests' physical, mental and spiritual energy. In other words, true wellness encompasses an on-going vibrant, stress-reducing way of living that leads to happiness and contentment. I also realized that just dispensing healthy facts would not necessarily lead guests to adopt healthier, wellness-oriented lifestyles. Instead, guests seeking wellness would need to feel inspired and empowered as well as being educated. READ MORE

Claire Way

How many of us would admit that we are addicted to our screens? The need to be in the know is a habit that is hard to break. Parents, recognizing this addiction in themselves, and the effects on their well-being are increasingly concerned about the effect screen addiction will have on their children. To counteract this, parents are investing time and money in helping their kids develop better habits; this is where spas can play a key role. Encouraging children to connect with wellness for prevention ensures they grow-up with the knowledge and passion to remain in the best health. READ MORE

Michael G. Tompkins

In the last decade, we have seen an increased willingness of hospitality and spa companies to cross geographical and cultural divides and move into markets outside of their traditional regions. It is really a function of and a result of globalization, which is impacting all business sectors. One geographical jump that seems to be getting a lot of attention these days is the Asian hospitality market. Big investors in the East are diving head-first into the Western wellness boom by buying landmark spa properties in the United States, recruiting top executive talent to lead their spa divisions in Asia, and integrating their traditional spa modalities with modern wellness culture. READ MORE

Sylvain Pasdeloup

Many luxury, five-star beach resorts on the world-famous holiday island destination of Bali put their spa and wellness services and facilities as among their top features. Many also promote their spa and wellness features as ‘one-stop' retreat highlights, with all-round spa-and-stay packages available, tailored to cover the essentials, ranging from health-conscious dining (oftentimes with calorie counts and other nutritional aspects taken in), various fitness and recreational activities to be had on the resort grounds, with treatments at the resort's dedicated spa facility or onsite beauty clinics. The trends in spa and wellness have recently gone further with science-based aspects included. READ MORE

Robert Vance

Wellness tourism not only drives revenue, it is a required service for any luxury property. Total revenue for the spa industry surpassed $16 billion in 2015 and is anticipated to exceed $20 billion by 2020. Further encouragement, a recent ISPA study showed that 56% of millennials have visited a spa within the last year; never have we seen a demographic so involved in wellness. Guests are savvier when it comes to healthy hotel concepts and hold higher programming expectations. Thus, as the hospitality industry commits to developing wellness platforms, the rewards of investing in guest health far outweigh the risks. READ MORE

Laszlo Puczko

Is wellness still attractive? Wellness providers need to look at developments in the wider healthcare (or medical) arena. There they will discover revived traditional healing approaches, cross-over services and treatments as well as new facility types which already challenge the wellness and tourism markets. Lifestyle medicine, longevity medicine and integrative health approaches will continue to complement, if not replace wellness services, and consequently spas... READ MORE

Trent  Munday

Hotel spas have come a long way, yet they haven't really gone anywhere. While the world around us has changed significantly in the last twenty years or so, the hotel spa has not. Spas have become a standard feature in most 4 Star and 5 Star hotels. Guests have come to expect a spa in these hotels. But does that mean they will use it? The numbers seem to suggest the answer is no - at least not like they used to. So, what is the Future of the Hotel Spa Business? Here's some thoughts for you to consider. READ MORE

Leslie  Wolski

Over the last ten years those of us in the spa industry have been embracing the Wellness Movement. Wellness has been the core value of spas for centuries, but hotel spas finally started focusing on it. Health benefits were highlighted and the old school pampering label was discarded. Menus were expanded, new and innovative services added and in some cases spas completely rebranded. This paradigm shift was made in the hopes of meeting our guests' growing demand for all things wellness. Now, however, our guests are asking us why and how. Why and how does wellness work? READ MORE

Ann Brown

Today's hotels and spas must step up to meet the needs of today's more wellness-savvy consumer and stay competitive in the marketplace. Today's guests understand what aging and stress can do to their bodies, and they want to minimize the damaging effects caused by busy lifestyles. Increasingly mainstream awareness about holistic health and wellness needs has led to guests looking for spa and hotel experiences that provide a true circuit of wellness — a comprehensive experience that begins from the moment they walk onto the property and is intentional throughout their visit and helps them achieve their longevity and wellness goals.? READ MORE

Greg Miller

When hiring a great spa director, and in my time, I have hired a few, you look for qualities that will lead to a successful business. Historically, those qualities include operational acumen, relentless service focus and the almost supernatural ability to motivate passionate spa types. We rely on our directors to run these business units yet their skill set may lean more towards nurturing than analytical. After all, it's rare to find a leader who does everything well. Being resourceful sure helps especially considering the data we have at our fingertips that can influence strategy and critical decisions, like price. READ MORE

Cecilia Hercik

Designing a Spa Menu can be considered the most important part of owning a spa. This one small bit of media can be the difference between an extensive amount of revenue, a large and dedicated clientele, and high employee morale, versus next to no revenue, no clients, and an unhappy team. The task may seem a daunting one, but once you are underway, you'll find creating your menu will not only be easier than you thought, but you'll have fun doing it. READ MORE

Jacqueline Clarke

Science has been part of the spa, and the in-spa conversation for a long time. Indeed, you might say that the modern spa is built upon science and scientific arguments. The modern spa industry is built on science in that the very treatments, that were key to launching and to scaling this industry, originated in the many different “scientific pasts” that the modern spas of today lay claim to. Today these born-in-science treatments are synonymous with, and also iconic of, the spa. One such treatment is a beauty treatment, and another is a wellness treatment. The beauty treatment is medicalized skin care, and the wellness treatment is massage. READ MORE

Jim Vandevender

Spas have been a revenue generating mainstay for resorts since travelling began. Resort and hotel spas make up only about 20% of the global spa market, and smart hoteliers know that the lucrative group market is not only a primary consideration in filling a resort's guest rooms, but it also is a significant contributor to the spa's revenue generating capacity as well. But just as important as it is for a resort to keep up on spa trends, unique challenges face a resort's spa business in the form of increased competition. If the rooms are not filled, available spa appointments go unreserved. READ MORE

Allison Ferguson

When I travel for business, I often return to the same city frequently - and when I do, I usually check into my favorite hotel. No matter how many times I return to that hotel, however, the front desk agents always treat me as if it's my first stay. They acknowledge my platinum status, certainly, and welcome me by name. After that, however, the desk agent will ask for my photo ID and credit card - just as they did the last ten times I checked into the same hotel. READ MORE

Arturo Garcia Rosa

Though Argentina has always sparked interest from investors around the world, some of the economic measures and political scandals related to the party that held the power for a decade (until December 2015) did not represent the best scenario for international investment. The more recent election of President Mauricio Macri, undoubtedly represents an important task of rebuilding the Argentinian economy and restoring its international credibility. Macri, already in his short stint thus far as president, has partially succeed with inroads here, and as such has been given the honor to host the World Trade Organization meeting in December 2017 along with the G20 Summit in 2018. READ MORE

Tom Engel

The hospitality industry is abundant with more than 270 hotel brands globally. Nevertheless, this whopping number is not stopping Marriott, Hyatt, IHG, and Hilton from expanding their portfolios with even more new brands. Theoretically, broadening the supply of brands is favorable for generating revenues from various distribution networks, loyalty programs and supply channels. But just how useful, helpful or even good is all this for the customer? Has the hotel industry gone mad by over-saturating the market with brands that are not all that different from each other? READ MORE

Larry Trabulsi

This article focuses on evaluating external service providers for optimizing Food and Beverage (F&B) Department profitability, and is the second in a series on outsourcing services at hotels. As my colleague, Michael Doyle, asked in the first article in this series: “Why should hotels outsource, or challenge a traditional operations model?” The most common answer is to maximize profitability. Industry-wide, F&B revenue represents over 25% of total hotel revenue, yet generating a meaningful profit margin in F&B (which is difficult to measure with accuracy) can be challenging. In many hotels F&B can be an integral part of the guest experience, and a large source of revenue for the hotel. READ MORE

Maricha Ellis

With the summer storm season upon us, it's especially important for hotels to be prepared for hazardous waste emergencies caused by severe weather. Preparation for such events is crucial for safely and compliantly handling emergency spills. Not only is proactive planning for environmental emergencies valuable from a compliance standpoint, but it can help minimize the damage inflicted within your hotel and the surrounding area, as well as reduce the risk to the health of your guests and staff members. READ MORE

David Lund

If your hotel has a reasonable amount of meeting space (+10,000 ft) and your banquet business is a significant contributor in your Food and Beverage Department (+20% of F&B revenue), you are going to want to separate local banquet business from group banquet business on all of your financial statements, forecasts, budgets and daily reporting. At this moment you may be asking, “Why would I want to do that? That sounds like a lot of work.” There are some very good reasons to make this practice a standard in your hotel. I see many hotel financial statements and most are missing the boat because they do not separate group and local banquet revenues. Separating this reporting and setting it up properly provides powerful information you can use in your hotel to make better decisions and ultimately be more profitable. READ MORE

Pamela Whitby

Is "Challenging Assumptions" the key to cracking customer experience? Booking.com thinks so and others do too. Love them or hate them - and yes hotels over the years have had a pretty tetchy relationship with booking.com – but few could dispute how successful a company the Amsterdam upstart has been. For successful tech companies building a solid and loyal customer base is far less about trusting your gut than having the right data and testing and learning from it. Flattened company hierarchies are also seen as important in getting the best from teams and, as a result, building more successful customer relationships based on personal preferences. READ MORE

Mia A. Mackman

The global spa movement, which includes wellness tourism, amounts to upwards of $3 trillion dollars per year. What physical and strategic elements are key to driving bottom-line performance at traditional and wellness-focused spas? Relaxation and a sense of wellbeing are at the heart of the spa and wellness market. Hence, it's no wonder that hotels, resorts, and spas have begun to reorganize their operations around wellness. The benefits, in the form of a stronger bottom line and appeal to demand segments, extend not only to guests but to hoteliers and hospitality companies, as well. READ MORE

Benjamin Jost

When does a hotel customer become a “guest”? Is it at the point where they book a reservation? The moment they walk through the doors into the lobby? Somewhere in between? Our team at TrustYou set out to identify the guest experience through the lens of guest communications, running a survey and observational study that encompassed nearly 1,000 participants. We identified the likes and dislikes of these guests. Along the way, we found some very interesting numbers relating to how travelers like to communicate with their hotel, and how these communication methods impact satisfaction levels. READ MORE

Michael Barbera

Time pressure is a significant driver of human decision-making. Time pressure is both artificial and natural. Time pressure is popular with airlines, hotels and sporting tickets. When purchasing an airline ticket it is likely that you have encountered a message that stated, “time remaining to purchase”, or “seats reserved for”, followed by a clock counting down. Ticketing agencies such as Ticketmaster and online retailer eBay are known for their time pressure sales methods. The high time pressure used by airlines, hotels and ticketing agencies are overt and intentional; however, not all time pressure is overt or intentional. READ MORE

Paul van Meerendonk

Today's hoteliers face mounting pressure to increase their hotel profitability. From acquiring brand new customers to driving repeat business and loyalty, making the right operational decisions and running a hotel with optimal efficiency continues to be an ongoing challenge for top hotel executives. However, with increased scrutiny focused on the best ways to drive total hotel profitability, what exactly do the industry's c-suite executives need to know about revenue strategy and profit optimization? READ MORE

Oliver Ryan

Managers at Hyatt Regency San Francisco had a battle on their hands — in the best possible way. Determined to do something fun and healthy for their 400 person staff, they launched a challenge on a digital platform that powers fitness tracker-driven wellness programs. The first challenge was so successful, two other Bay Area Hyatts wanted in, and the Battle of the Bay was on. READ MORE

Lily Mockerman

Revenue Management is a quickly developing and growing field as it strives to adapt to changing trends and technology. There are still many opportunities to enhance the true potential of this discipline. Whether in the areas of metrics, departmental cooperation, technology and social trends, or multiple revenue streams, there is much for revenue management professionals to tackle on any given day. The future of Revenue Management will quickly be defined by those with the vision and ability to harness the evolution of each of these areas. READ MORE

Bhanu Chopra

The hospitality industry worldwide has witnessed disruptive growth over the last few years. With an explosive influx of all kinds of hotels, both big and small, competition is at an all-time high. However, this is great news for travelers as they are spoiled for choice, with a variety of options to choose from. Combine this leverage for travelers with the internet emerging as a strong search and transaction channel, and with the role of Online Travel Agencies (OTAs) getting stronger each day, hoteliers are now under immense pressure to ensure high visibility across all leading online platforms with an aim to drive a maximum number of bookings. READ MORE

Coming up in March 1970...