Boosting Your Spa Retail Sales - A Golden Opportunity

By Gary Henkin President & Founder, WTS International | May 07, 2010

Whether you are just now considering the addition of a spa or if you have an existing facility, an effort should be made to focus on lifting your retail sales to higher levels of service and profitability. A spa can produce revenue and profits in any number of ways, but one of the most important is to have a vibrant product and retail area which consistently supports a positive net operating income. Product and retail sales can contribute as much as 20-40% of total revenue with a high profit margin. Thus, to gloss over this area can be a costly mistake.

There are numerous areas to consider that are crucial to building higher product sales and to maximize profit margins. Several important items for consideration are:

  • When offering home care solutions to guests, there is the chance to create an ongoing relationship. Thus, encourage the consumer to continue the spa and wellness experience at home and to return to the spa again and again. Few spas do a good job in maintaining a line of communication with their guests which is a missed revenue enhancement opportunity. Spa bulletins or newsletters are important tools in this regard.

  • The spa staff needs to be fully educated regarding the products and services sold. Guests should feel that they have gained valuable knowledge that will enhance or improve their lifestyle, health or well being. They will more likely continue with a homecare program if they had an enjoyable but also educational experience at the spa. The sales process should be "stress free" for the guest and a seamless part of the overall spa experience.

  • Typically, in a spa environment, there is more time to educate and sell to guests than there is in more traditional retail venues. Take enough time with each guest to educate and explain the benefits of your products and services. In many instances, spas try to usher guests in an out quickly, which can easily render an impression that the service staff simply don't care. This approach can produce a negative consumer impression which is difficult to combat for future referrals.

  • Bundling of retail services can take a number of forms. For example, putting two products together along with a "Goes Well With" sign encourages the purchase of both products. Find an easy way to gift wrap items and make it convenient for guests to purchase. Using gift with purchase (GWP) promotions are also a good way to bundle retail; work with your product vendors to gain access to free samples or giveaways that they will send to you for use in GWP programs. Rewards are another easy way to package services; as an example, if a guest purchases a gift card for $100, he/she could receive a $25 voucher with a time limit to encourage the guest to return.

Choose a Social Network!

The social network you are looking for is not available.


Hotel Newswire Headlines Feed  

Brenda Fields
Georgi Bohrod
S. Lakshmi Narasimhan
Jeff Guaracino
Dan Brown
Bernard Ellis
Gary Henkin
Kevin Wilhelmsen
Roger G. Hill
Philip Farina
Coming up in April 2019...

Guest Service: A Culture of YES

In a recent global consumers report, 97% of the participants said that customer service is a major factor in their loyalty to a brand, and 76% said they view customer service as the true test of how much a company values them. And since there is no industry more reliant on customer satisfaction than the hotel industry, managers must be unrelenting in their determination to hire, train and empower the very best people, and to create a culture of exceptional customer service within their organization. Of course, this begins with hiring the right people. There are people who are naturally service-oriented; people who are warm, empathetic, enthusiastic, pleasant, thoughtful and optimistic; people who take pride in their ability to solve problems for the hotel guests they are serving. Then, those same employees must be empowered to solve problems using their own judgment, without having to track down a manager to do it. This is how seamless problem solving and conflict resolution are achieved in guest service. This willingness to empower employees is part of creating a Culture of Yes within an organization.  The goal is to create an environment in which everyone is striving to say “Yes”, rather than figuring out ways to say, “No”. It is essential that this attitude be instilled in all frontline, customer-facing, employees. Finally, in order to ensure that the hotel can generate a consistent level of performance across a wide variety of situations, management must also put in place well-defined systems and standards, and then educate their employees about them. Every employee must be aware of and responsible for every standard that applies in their department. The April issue of the Hotel Business Review will document what some leading hotels are doing to cultivate and manage guest satisfaction in their operations.