Mr. Owen

Spas, Health & Fitness

In-Room Spa Services Programs Help Drive Guest Satisfaction, Revenue without the Costs or Investment of Full-service Spas

By Conan Owen, President, Relax & Rejuvenate Hotel Spa Solutions

Getting an in-room massage used to mean asking the concierge to work their magic - spinning through their rolodex to find a massage therapist who was available for a hotel visit. It’s no longer just the purview of the savvy concierge, as many hotels - and even entire brands - have developed a formal in-room spa services program which they Tweet, post and otherwise tout directly to guests to capture higher occupancy, greater loyalty and REVPAR benefits.

No Spa, No Problem

“Kimpton is singularly concerned with how people feel while in our care, and adding an in-room spa services program was a natural step,” says Steve Pinetti, SVP of Sales & Marketing for San Francisco-based Kimpton Hotels which launched the industry’s first brand-wide in-room spa services program in 2005.

“Many people find it difficult to be your ‘best you’ while enduring the stresses and strains of frequent travel, particularly for business,” says Pinetti. “Both our business and leisure travelers have found our in-room spa services program to be just the right antidote for recharging their mind and body while on the road,” Pinetti added.

Kimpton’s program features organic spa products – reflecting their EarthCares sustainability programs – in a menu of 12 different spa treatments ranging from hot stone massages, to facials to body scrubs. “Services can be requested on-line through the in-room spa page on each hotel’s website, and members Kimpton InTouch (Kimpton Hotel’s Frequent Guest program) receive a $30 discount on each and every spa treatment,” touted Pinetti.

SPAffinia, Denihan Hospitality’s initiative in their Affinia Hotels in New York, Chicago and Washington DC, addressed the boutique brand’s desire to provide spa services to guests in a consistent, professional fashion that reflected the brand’s core values. “Since Affinia Hotels are all about comfort, it added a coveted service for our guests. Having a common menu of 8 different services, provided by an exclusive vendor/partner created a seamless process which also gave us an additional revenue stream,” according to Don Fraser, Director of Operations for Affinia Hotels.

In-room spa services are prominent features of independent hotels such as The Betsy on Miami Beach, Hotel Commonwealth in Boston and the Heathman Hotel in Portland, OR. “We take the downtime of our guests seriously,” says Heathman General Manager Chris Erickson.

Though Heathman has been offering in-room spa services since 2006, it has kept is program up-to-date with a recently launched iPhone app that allows guests to request their in-room spa treatment on the go. “Whether they are in a meeting or at the airport waiting to board their flight to Portland, our guests can order room service and arrange an in-room massage so it can all be waiting for them when they check in,” added Erickson. And the new app is delivering results, with nearly a 20% increase in the use of the in-room spa program. “By aligning our guests’ communication preferences with our amenities, we get guests excited about coming to our hotel,” said Erickson.

In-room spa services programs are not just for boutique brands and independent hotels. Major flags have been plying these waters since 2007 when Starwood’s Westin brand rolled out their in-room massage program on a worldwide basis. With the support of the corporate spa operations team, Westin Hotels were provided with a framework of operating procedures, program standards – such as every Westin Hotel utilizing the same CD of relaxing music, standard Heavenly Spa linens and the same model of massage tables to ensure consistent comfort of guests -- and implementation tools - such as interview guides and vendor contracts.

Relaxation Revenue

Offering in-room spa services can have several quantifiable impacts on the top and bottom lines. Revenue-share agreements, drawing in additional occupancy with creative packages, increasing customer loyalty and increased REVPAR are some of the direct and indirect financial benefits. In tenuous economic times, the economics of an in-room program can be compelling, compared with the expense, investment and risk of building a spa facility.

Most programs involve a revenue-share with the vendor providing spa services, which is typically 20% of the service price. In a 200 room property, 1% of guests utilizing the in-room spa program can generate nearly $20,000 to the hotel from a revenue-share arrangement.

Spa services can also help drive occupancy, with creative packaging of services with overnight stays to target specific travelers. “All of our hotels customize spa components into their specific needs,” says Pinetti. “Whether it is a mother-to-be massage for a ‘Baby-moon’ package, a sports massage for the city’s marathon weekend or poolside treatments in our warm-weather markets, the local sales and marketing teams consult with our spa partner to come up with a creative package that brings in guests,” Pinetti added.

Affinia Hotels have included a discount on spa treatments as a component in their packages ranging from 20 – 25% to attract guests. “The SPAffinia discount helps drive package sales by keeping the price point down since it leaves it up to the guest to take advantage of the spa services,” says Brooke Jennings Row, a marketing executive at Affinia Hotels who was part of the committee that created the SPAffinia program.

Guest loyalty can also result from the use of in-room spa services. In surveys of guests utilizing in-room spa services, Ann Michaels Associates found over 60% of guests said they would be “very likely” to book their next hotel stay at a hotel offering in-room spa services, and over 70% of guests said the spa services offering left them with a “more positive” impression of the hotel. “We believe that helping our guests preserve their wellness lifestyle while on the road is what drives loyalty to the Westin brand. One of the ways we do this is by ensuring that quality spa treatments are available in all of our hotels, whether they have a spa facility or not,” says Jeremy McCarthy, Starwood’s Director, Global Spa Development and Operations.

REVPAR can also benefit from a spa services program, as guests receiving in-room spa treatments are more likely to stay on property and spend more. “If you have a 5 p.m. massage, you're not as likely to leave the hotel to have dinner,” Susie Ellis, President of Spa Finder, a spa marketing company, said. And some research bears this out. An analysis of folios of 100 guests utilizing in-room spa services found over 90% also posted charges for restaurant or in-room dining, mini-bar or entertainment, vs. 62% of non-spa users having additional on-property spend.

Spa Versus In-Room Spa

A 2010 Spa Trends survey by Coyle Hospitality and WTS International, a hotel spa management company, found personal care expenditures and frequency of spa visits were expected to increase amongst spa goers who did not suffer a job loss. Stressful times require more stress relief, which bodes well for the spa service demand.

But with hotel spa construction having slowed in the latest economic down-turn, in-room spa programs can be expected to grow in number and sophistication as hotels remain hesitant to take the plunge into building a full-service facility.

In-room spa services present challenges not found in traditional spa facilities. Chief among them are local regulations governing in-room services. In many states, skin care and nail care services can only be performed in a licensed cosmetology establishment, leaving only massage therapy on the treatment menu.

And even mainstay massages may be off limits. Several cities and counties throughout the country even prohibit in-room massage therapy services, regulatory vestiges from when “massage” was just a code word for prostitution. In 2008, when Kimpton and Westin both had hotels in the works for Alexandria, VA, their general managers led the charge to lobby the mayor and city council to get the ordinance changed to allow their brand-standard programs to be implemented.

Legal and risk management concerns also exist in creating an in-room spa program. Issues around licensure, appropriate levels of liability insurance and workers comp insurance get more complicated as in-room spa providers tend to be independent contractors, not companies with employees or other entities that cover their contractors to the satisfaction of most legal departments.

“To be able to offer our guests a way to unplug and relax through our spa services program is a huge benefit,” says Erickson.

Information regarding some in room spa programs can be found at:

http://www.kimptonhotels.com/services/inroom-spa-services.aspx
http://www.affinia.com/Bells-And-Whistles.aspx?page=SPAffinia
http://www.starwoodhotels.com/westin/difference/index.html#/heavenly-spas-by-westin--in-room-spas

Conan D. Owen is President of Relax & Rejuvenate Hotel Spa Solutions. He holds and MBA from the University of Virginia and his 7 years as a management consultant with the Boston Consulting Group gave him insight into the needs of travelers as he achieved United 1K, AAdvantage Million Miler, Starwood Preferred Guest Platinum, Hyatt Gold Passport Diamond status. Relax & Rejuvenate - was started by Owen and his wife Suzanne, a former Estee Lauder executive - provides in-room spa services for over 60 hotels nationwide, provides staffing for massage treatment rooms and operates 4 full-service hotel spas. Mr. Owen can be contacted at 1-866-867-3529 x111 or conan@relaxandrejuvenate.com Extended Bio...

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