Ms. Segerberg

Spas, Health & Fitness

Spa Profitability: Success in the New Economy

By Jane Segerberg, Founder & President, Segerberg Spa Consulting, LLC

Everyone will agree, post 2008 we have seen changes and challenges galore in the spa and hospitality industries. The Spa Industry’s wheezing financials are in an uphill battle to regain the profit margins earned prior to the last four years and recapturing revenues is a moving target. Our spa and hotel guests along with consumers in general are more discerning, pickier and more tech savvy than ever before. Value is celebrated as the latest and most sophisticated trend and no one wants to overpay for the service or product they receive. Truly, the current economy is the acid test of any spa brand.

The most recent statistics released by the International Spa Association indicate that U.S. spa revenues in 2010 increased by 4% over 2009 according to the study completed by PricewaterhouseCoopers exclusively for ISPA. In addition, the study reports that Spa visits increased approximately 5% from 143 million to 150 million. While the percentages are small, they are good news and a start toward economic recovery. What do we do to continue the uphill climb and win guests over and over again? The answer is simple. Intensify our focus on the comfort and care of our guests. Delivering comfort is the keystone of universal mission of spas. It manifests itself in the building layout, furnishings, amenities and most of all in the service delivery of the spa experience.

Have a break anywhere in the chain, whether due to building layout, product offering or staffing snafus and it will send the spa guest looking for a better spa and posting less than stellar reviews on travel websites. Through consumer feedback sites and social media guests know how their peers valued their experiences and can make the decision as to whether the price is worth paying. The word in vogue is “value” and our guests make their decisions accordingly.

Stepping back 10,000 feet for the big picture view; the comfort, care and value our guests experience are affected by the planning, management and overall experience delivery of the spa. At this moment, we are focusing on the delivery of the experience and this article will briefly mention planning and management which affect the ability to deliver a memorable experience.

Planning

Beginning with new builds, planning continues through renovations and is a constant factor in management. Planning new and renovated spaces with the overriding mission of caring for guest comfort requires a design process that promotes design efficiency. Ease of orientation and guest flow where guests have privacy and staff can efficiently service each guest touchpoint are the hallmarks of design efficiency. Because well-conceived and well-planned spas are very intricate, it is important to have the full team of designers, engineers and equipment providers involved along with operational staff or a spa consultant with operations experience involved during space planning. Full team involvement reduces change orders and ultimately the cost of the project while achieving efficient results. Bringing the spa’s concept to life begins with the space planning process and ends with the spa’s program of services, staff quality and thorough staff training.

Management

Even the strongest spa directors need the committed support of hotel/resort management. Having a supportive relationship between Spa Management and Hotel Management strengthens the Spa Director’s ability to manage a well-orchestrated and memorable guest experience delivery.

The rest is nothing new - monitor the spa’s key performance indicators on a daily, weekly, monthly and quarterly basis. Set goals and benchmarks, etc. etc.

Here’s the one important exception - Throw away the policies and train staff to do what it takes to give the guest a memorable experience every time. Guest-centric staff training and supportive management allow flexibility for listening and responding to guest needs, suggestions and requests.

Experience Delivery

Will guests leave the spa satisfied or satisficed? The satisfied guest is one who had an experience that he/she rates well beyond the price point and feels good about the decision to schedule time at the spa. The satisficed guest is one who had an experience that was “good enough”, but not what was expected and feels “so-so” about the decision to schedule time at the spa. Spas that are tied to bottom line focus and belt tightening have lost their soul. These spas compete on price alone and guest can just as easily to the nearby “spa-in-a-box” (which by the way have been upgrading service levels) because the experience is the same. Since guests can offer reviews instantly on consumer sites, it behooves the spa to manage its reputation with quality and value that overrides pricing.

The spa’s product convergence is such that the responsibility of creating a unique and memorable brand experience falls squarely on the shoulders of the staff. Is staff given the ability to be flexible with listening and responding to guest desires, questions and comments? Are the therapists trained and encouraged to combine therapy components suited to the guest’s needs? Are all therapists and all staff encouraged to educate beyond the treatment and teach guests to incorporate healthy elements into their daily and weekly routines? In addition, seamless service requires cooperation and collaboration between the desk staff and the therapist staff. Digging deeper into the spa’s overriding mission and delivery of care and comfort as it is expressed in the brand concept will reveal whether or not it is real.

Important to fortifying the spa’s revenue lines, the spa’s menu items should connect with the guest and speak to a relationship. The relationship starts not with the spa visit but with the brand image, the spa’s menu, the connection with the reservation staff and the overall lifestyle connection. Above all, there is a direct relationship between the spa’s reputation and number of bookings.

Success in the new economy isn’t related to being part of a prestigious brand with the logo over the door or squeezing financials. It is the experience inside that counts. Satisfy not satisfice spa guests and they will not only broadcast the news, but also return again and again.

Jane Segerberg is founder and president of Segerberg Spa Consulting, LLC., a multi-faceted spa consulting and management company with an industry reputation for creating spas that work –they are compelling for the property’s market, attain recognition, engage guests in memorable experiences and achieve bottom line success. Over Jane’s thirty-year history in the wellness, hospitality and spa industry, she has become recognized for providing outstanding service and keen attention to detail. For company information please view http://www.segerbergspa.com. Ms. Segerberg can be contacted at 912-222-1518 or janesegerberg@yahoo.com Extended Bio...

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