Ms. Segerberg

Spas, Health & Fitness

Maximizing Your Spa's Revenue

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

Then, along came the spa boom and with it came more spa build outs and more spa-goers that have become spa savvy. Clearly the market has changed, supply has met or exceeded demand and competition is escalating.

It is time to give the spa-goers what they want and deliver it graciously and simply. Spa-goer surveys in the last three years haven't expressed a desire for a "bigger and fancier widget". They have expressed a desire to relax and they want the spa to be accessible and have the basics - - massage, facials exercise, body treatments and good food. What cues for maximizing revenue can be taken from this brief overview of the Spa Industry's last decade? The answer is to deliver a quality spa product that is an extension of the property, remains true to its concept, and is managed and marketed well. Following are some highlighted points to achieve results.

The Spa's Atmosphere Creates Repeat Guests

Create an atmosphere of absolute caring in which all staff take time to focus on the guest and your spa will have the opportunity to up-sell, re-book and create third party endorsements. Excellent hiring practices, training, and well-written and used operating procedures along with teamwork determine your spa's ambiance. Guests want a chance to relax and as a result, their experiences should reach that goal from the very first contact with the spa's reservation/front desk personnel, to the locker room attendant, the therapist, retail sales, and check out. With such a complex service delivery cycle in the spa, it takes hiring smart and consistent trainings to get it right. The Spa has the potential of being the inner sanctum of the guest's total resort/hotel experience.

Check your spa's training program; does it express the values and mission of your property? Does each employee receive hospitality training? Do the Spa's SOP's cover everything from answering the phone to greeting the guests, draping the table and sequencing the treatment to the parting greeting? Are the SOP's well-written and used in training? Update the Spa's SOP's, spa department manuals and most importantly the training cycle to deliver the caring product that your guests want and deserve.

Raise The Number of Spa Guests and Purchased Treatments

The spa is a wonderful opportunity for your hotel/resort to add a special experience to the other guest experiences. How well you integrate your spa into your other departments is crucial to the spa's success. Encouraging employee spa tours and spa experiences during the slower seasons creates spa ambassadors within your own property as well as employee perks. Another way to raise spa visibility within your property is to have spa personnel visit departmental meetings - - start the meeting with mini-back rubs - - watch the department turn into spa representatives.

Pre-Sell Spa Appointments

Integrate the spa into the reservations and group sales departments. During the reservations process, your reservationists can ask, "Would you like to book a massage for the day of your arrival?" This not only adds to the spa's revenue, but it begins the guest's stay with stress reduction and a much happier outlook. When confirmations are sent, include a reminder about the spa's offerings and reserving appointments ahead of arrival for greatest availability.

Pre-sell the spa to groups. The site visit should include a tour and explanation of the spa's menu for groups and individuals. Package your spa's group menu well in a separate group brochure. Collaborative work with group sales and spa management is also vital. It is advantageous to designate a spa group coordinator who manages the group's spa treatments and activities.

Arrival and On-property Sales Opportunities

Before guest pick-up, drivers can check on the spa's availability and then call during transport to book a massage or other treatment for the arriving guest. Spa brochures and spa water upon pick up are helpful to the process.

Bellman can ask if spa appointments have been made and can then offer spa brochures, leave the spa's extension number or indicate the spa's programmed button on the room's telephone.

Everyone has to eat, and the menu is a perfect opportunity to raise the guest's awareness of the spa and meet his or her needs for healthy cuisine. On each menu, offer at least one spa suggestion that is creative, flavorful and clearly marked. Be sure that the wait staff has had an opportunity to taste and become familiar with the offering as well as become knowledgeable about the spa. Wait staff should be able to speak favorably about the spa when asked, "So, what do you hear about the spa?"

Recreational activity outlets such as golf and tennis are breeding grounds for guests in need of spa services. The desk staff and the pros should be well versed in the spa's offerings. After all, to them it means a guest who is relieved of the tension caused by muscle over-use and able to come back for another game at the "top" of their game. It is a win-win situation for everyone.

Manage Spa Personnel For Greatest Availability

You can't sell it if it isn't available!! Guests want the spa's treatments to be accessible; they don't want to jump through hoops and hurdles to alter their entire day to get a treatment. The last thing that the spa wants is to be perceived as "difficult". There is a simple formula to ensure that Spa Management is on track with managing its therapist scheduling to the market's advantage. Staffing levels and staff utilization targets are crucial. Staffing levels should approximate 60% of treatment hours available. Utilization (hours booked/hours scheduled) should be approximately 75% to 85%. If either one is out of balance then adjustments in scheduling should be made. One of the most common incidences that I see in spas is the "empty tomb effect" in which I request a service and am told that there is none available at the time that I request and then upon touring the facility I find that treatment rooms are empty. Again, you can't sell it if it isn't there!!

Managers and supervisors need to schedule their treatment personnel inventory according to the hotel's forecasts, be pivotal and arrange staffing quickly according to changes. Create incentives for the therapist supervisor to schedule according to the market demand instead of the whim of the therapist. A year-end sliding scale bonus incentive for treatment income that exceeds budget targets works well and the supervisor is rewarded for increasing the spa's income. A small percentage such as .03% (.003) to .06% (.006) can enhance the supervisors pay and increase the spa's income by as much as 5% and up.

Increase Retail Sales Dollars

Retail sales has the opportunity to gain a larger % of total income dollars. If Spa Management is not already tuned in to good retail stock management, creative display, product knowledge and sales training skills, then start today! A well-designed retail layout plus product knowledge amongst all staff plus caring, individualized service with product suggestions for each individual guest can equal gross retail that is as much as 30% of total sales. A staff that cares about its guests and is knowledgeable about product can suggest products for the guest to use as an adjunct to spa treatments to improve their sense of well-being. Sales commissions and incentives also help to keep the staff excited about sales.

Raise The Number of Spa Visits From The Local Market

Manage outside guests well so they don't disturb the hotel guests and you will have a client base that will help to sustain your spa's bottom line during occupancy fluctuations. Special packages for residents that include reduced rates for a series of services is just one way of attracting locals. Another way is to partner with local corporations who would like to offer employee perks and retreats. Gift Certificates are a large source of local revenue for many hotels/resorts near a metropolis. Make the gift certificates easy to purchase by going to the customer at their own shopping outlets as well as a direct mail campaign.

A Final Word

Your spa, as the "heart and soul" of your property, can not only increase its bottom line, but also offer an experience that is an extension of your property and an enhancement to the guest's stay. This is a total win-win situation that improves the total property's business.

In our experience, some properties and spas can achieve great results on their own while others find that hiring the experienced assistance of a spa consultant is beneficial to the planning, training and managing of their spas for increased revenue generation. However you approach it, begin soon. The rewards of greater revenues and happier guests are too precious to lose.

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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