Maximizing Your Spa's ROI

By Melinda Minton Executive Director, SPAA | October 28, 2008

Like having a sizeable indoor pool, fluffy pillows, plush carpeting and a complimentary cocktail at happy hour, spas were thought to attract more of the core business which is lodging guests.

Interestingly, no element of this equation really worked...for any of the players. Hotels put in spa facilities in all sorts of shapes and sizes from ultra posh to the ultra Spartan. Some hired the management of the spa out to expensive specialty services, while others had their Food and Beverage manager oversee the new area. Spa-goers started the '90's off fairly confused about what to expect from a spa facility and wound out the decade by becoming more and more demanding. Hotels did what they do best; they marketed their facilities showing off the new amenities in glossy brochures and interactive websites, on television commercials and through travel agents.

After all, spas were just service related facilities; quite similar to the core business of a hotel-or so the logic goes. Moreover, the add on was an amenity. What could possibly be wrong with offering guests more? Guests meanwhile expected the moon and the stars and were inevitably disappointed by some small detail of their experience at the spa. "The earth didn't move..." While spas thought that they were hiring staff for their spa just like they would add staff to their front desk, they quickly found out differently. Spa technicians had to be licensed which translates loosely into hard to find, borderline extinct and they had challenging attitudes about pay, work, rules and their role in the spa. What started as a na"ive and well-intentioned foray into more comprehensive amenities and customer service, turned into a money hungry monster. An unchecked, mismanaged, unruly monster turned lose upon the masses.

As if responding to a bad date or an adverse reaction to a drug, many in the hotel business retreated. Some removed their spas, other handed the mess over to a consultant or management firm and yet others accepted defeat in the pocketbook. Like a glaring stain on an otherwise perfectly white carpet, spas were declared "loss leaders..." end of story. Many reluctantly kept their spa amenities feeling that they needed that extra perk to remain competitive, but no one embraced the concept of day-to-day management of the spa.

Just recently, as if catching their second wind, hotels have regrouped on the spa issue. Unfortunately the spa trend has become a mainstay. The quirky way to have fun and feel relaxed has become an American way of life. Spas are here to stay; dreaded horrors. Accepting a loss leader as a permanent fixture in your business model is a bit disheartening. With no other choice, the lodging industry has decided to dig in their heals and tackle the beast head on. It is possible to make the spa equation produce profits. Read on to discover how.

Your spa facility should not be confused with your hotel business

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Coming up in June 2019...

Sales & Marketing: Selling Experiences

There are innumerable strategies that Hotel Sales and Marketing Directors employ to find, engage and entice guests to their property, and those strategies are constantly evolving. A breakthrough technology, pioneering platform, or even a simple algorithm update can cause new trends to emerge and upend the best laid plans. Sales and marketing departments must remain agile so they can adapt to the ever changing digital landscape. As an example, the popularity of virtual reality is on the rise, as 360 interactive technologies become more mainstream. Chatbots and artificial intelligence are also poised to become the next big things, as they take guest personalization to a whole new level. But one sales and marketing trend that is currently resulting in major benefits for hotels is experiential marketing - the effort to deliver an experience to potential guests. Mainly this is accomplished through the creative use of video and images, and by utilizing what has become known as User Generated Content. By sharing actual personal content (videos and pictures) from satisfied guests who have experienced the delights of a property, prospective guests can more easily imagine themselves having the same experience. Similarly, Hotel Generated Content is equally important. Hotels are more than beds and effective video presentations can tell a compelling story - a story about what makes the hotel appealing and unique. A video walk-through of rooms is essential, as are video tours in different areas of a hotel. The goal is to highlight what makes the property exceptional, but also to show real people having real fun - an experience that prospective guests can have too. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.