Do You Really Know How Your Spa is Doing?

By Judy Singer President & Co-Owner, Health Fitness Dynamics, Inc. | August 10, 2010

Is the Spa Industry Fiscally Healthy?

We all know that any new four or five-star resort and many luxury urban hotels need to have a spa in order to stay competitive. While the supply of spas has been on a steady rise for many years, the growth has slowed and this is probably good because there are some challenges that need to be addressed... The supply has out-paced the demand, the labor pool from management to service providers is quite limited, and there isn't enough reliable economic information.

These may be "symptoms" that need further examination in order to address any "health" issues that could impinge on the well-being of our industry. It used to be that if the Spa had a unique concept, was planned to be operationally efficient for the staff and comfortable for the guests, had a well-conceived and executed marketing plan and was well-managed, it would be a financially profitable venture. The challenge has been to define "what is financially profitable." It may be time to really have a "fiscal check-up" to see just how healthy we are.

Lots of Information But Do We Have What We Need?

As a relatively young industry, there has been quite of bit of research conducted as it relates to the Spa Industry. Some findings have been useful and some are purely interesting, but at this point in our industry's development, are we getting what we really need to have a financially profitable business venture?

The following types of studies have provided some good information:

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Mark Simpson
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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.