Operating revenue can be generated from numerous sources. This includes income from spa services (massage, facials, body treatments, nail services and salon/beauty). In addition, significant income can be derived from spa product sales as well as daily usage fees and/or "spa membership" sales. As critical as it is to set the stage for a smooth launch for a newly developed spa, it is even more crucial to develop a systematic approach to ensure that operational goals, both from a customer service and financial perspective are met. In a recent industry study, it was reported that hotel spa revenues averaged just over $130 per square foot, or about $115,000 per revenue station (treatment rooms and salon stations). Massage is still the king of all spa treatments; combined with facials and body wraps. Services/treatments still represent over 70% of all departmental spa revenue. The good news is that the study indicates that spa department profits continue to rise with resort hotel profit margins higher than those of urban properties by almost a two to one margin.

There are numerous concerns and potential pitfalls when operating a spa. Typical mistakes abound, but so do opportunities. Several are outlined below.

Staff Selection and Training

Finding and retaining ...