Designing Profitability into Your Spa

By Jane Segerberg Founder & President, Segerberg Spa Consulting, LLC | August 09, 2010

Spas have moved from being an addition to a hotel/resort that sets it apart from its competitors to being a necessity. Spas have proven their worth to the overall hotel/resort profitability by increasing average occupancy, revenue per occupied room, length of stay and ratio of double occupancy, in short, as the latest survey by Smith Travel Research States: "Resorts that operate a spa are at an advantage since spas generate occupancy at non-peak times, assisting managers to stabilize their rates."

The goals for spas have also moved. Spas are no longer only an addition that is nice to have, they are now an addition that not only supports the overall resort/hotel profitability but also operates as a stand-alone profit center within the resort/hotel.

Add to the shift in goals, the fact that with all of these spas being built and more spa customers, we now have a very savvy spa goer market who wants more than fluff, trendiness and empty promises. None of these ploys attract loyalty or give guests a clear picture of the spa's intention, there is nothing on which to make a decision to buy.

So where do we start? Here is a brief overview of designing profitability into your spa:

Outline the Concept

The concept is based on multiple considerations. The appropriate concept pleases the market and garners repeat guests and evangelism for your spa.

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