Spa Market Research and Feasibility: Compiling the data required to support the investment
By Elaine Fenard Partner & Chief Operating Officer, Europe and U.S., Spatality | October 28, 2008
Making the decision to build a spa involves a substantial capital investment in a business that has unique nuances and is very different from the hotel business. Today, spa is a requirement in most five star properties and is considered an advantage in most four and even three star properties. As spa has become a must-have facility, it has also become much more important to make sure the spa facility...
In most cases, a market research study has already been conducted for the hotel. While this study may have outlined that the property needs a spa to be competitive, it is unlikely the report contained the data needed to make constructive decisions regarding the size and scope of the spa project, and the return on the investment.
There are five primary objectives in completing a successful Spa Market Research & Feasibility Study.
1) Project Objectives and Parameters
The party constructing the study will need to understand the objectives and project parameters of ownership/management prior to the data collection ensuring that everyone is on the same page. Additionally, it should be determined how the property fits into the portfolio and the intent for future growth of the spa division.
The data gathered to support this objective will...
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