Hotel Spa-Specific Key Performance Indicators
By Kristi Dickinson Director of Spa & Wellness, Rancho Valencia Resort & Spa | June 23, 2019
Positioning your spa well will help sell hotel rooms but managing your spa business well will ensure your spa is also a contributing profit center. Monitoring and understanding key performance indicators (KPIs) is critical for a successful spa division.
KPIs are used for comparisons – between competitors with similar spas or between multiple locations within a brand collection, Measurement – to gain an understanding of a spa's operational results over a series of time periods, and Communication – to provide a common language regarding performance and operational efficiency for ownership, investors, asset managers, managing directors and general manager.
Begin by choosing your top priorities, establishing benchmarks, measuring and monitoring performance, and then revising strategies. Share KPIs with your line staff to validate their contributions and connect them to a feeling of purpose. Reward them for achieving goals and gather their input on strategies to attain future goals when a revised plan is needed. Regularly review the results of these plans to develop financial acumen and future leaders.
I have shared some of the more popular spa KPIs and industry averages with you below to use as a general guideline, however it is important to note that spas differ greatly depending on market segment, location, facility, offerings, and reporting procedures.
1) Treatment Room Utilization (TRU)