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HOTEL BUSINESS REVIEW

AUGUST FOCUS: Food & Beverage

 

Why Wellness Tourism Results in Healthier Revenues

By Lisa Ross President & Partner, rbb Communications | August 2019

Wellness travel is a trend on the evolutionary fast track. Luxury hotels and their marble spas have traditionally been the response to travelers' health-centric demands, commanding top dollar for an hour or two of pampering indulgence. Today, spas are an archetype of hotel segments across the spectrum, from luxury to convention hotels to independent, boutique properties.

The total number of global hotels with spas has increased from 13,000 in 2014 to 19,020 in 2018, representing a 46 percent increase over a span of just five years, according to STR's census database. But beyond the rise of the hotel spa, wellness travel is seeping into other facets of the travel experience as consumers' understanding of the concept broadens. Hotels and destinations that cater to these demands are not only building better bottom lines, but also reaching travelers who may not have previously considered their property or locale for a future trip.

What is Wellness Tourism?

The Wellness Tourism Association defines this segment of the industry as "travel that allows one to maintain, enhance or kick-start a healthy lifestyle, and support or increase one's sense of well-being." In other words, wellness travel is about prioritizing one's physical, mental and spiritual well-being. For hoteliers, that translates into a new set of guest expectations that must be met in order to stay relevant in today's market. Doing so is no longer just a matter of forecasting profit and loss (P&L) on spa construction and operations –or even offering a spa facility.

The modern hotel guest's self-care regiment is a daily goal that takes a variety of forms, incorporating elements such as digital detox, healthier food options, a fitness concierge, sleep enhancement and more. Hotels large and small have already recognized at least some of these habits and consequently, have stepped up their food and beverage (F&B) game or enhanced their fitness centers with next generation equipment or the simple addition of yoga mats.

Garnering ROI from the Wellness Segment

The hotel industry cannot afford to ignore this travel trend. Wellness tourism is now the fastest growing segment in the travel industry. While the tourism industry as a whole has grown at a rate of 3.2 percent since 2015, wellness tourism has expanded at double the clip, up 6.5 percent every year between 2015 and 2017 when travelers took 830 million wellness trips –139 million more than in 2015.

And this is just the start. The Global Wellness Institute (GWI) predicts that the wellness economy will continue to grow, reaching $919.4 billion by 2022. Resort operators with an established reputation as a wellness destination are already reaping the financial rewards of their foresight. Horwath HTL's July 2018 report Wellness-Themed vs. Wellness Hospitality describes wellness resorts as the most seasonality-proof product in the hospitality industry, with a substantially longer average length of stay (five to seven nights) than traditional resorts.

Wellness resorts, which often charge per person nightly rates even on double occupancy rooms, also tend to drive an average of more than two and a half times the RevPAR (Revenue Per Available Room) than traditional resorts where a single rate quoted is based on double occupancy.

Lodging providers need not be a self-designated wellness resort to capitalize on this trend. Hotels that pull the trigger on new wellness offerings now stand to gain from this outsized travel segment. The wellness travel trend has the potential to drive additional room revenue through themed packages, ancillary revenue from exclusive, on-site experiences and even retail sales as well as group bookings associated with the wellness-focused affinity market. Hotels with existing spas also have the option of diversifying their revenue model by tapping their local market and offering memberships or similar payment plans.

However, travelers' aspirations for a mentally, physically and spiritually balanced lifestyle are also taking them outside of the spa.

Leveraging Wellness Tourism Trends

As wellness becomes more and more mainstream, a growing number of travel brands, hotels in particular, are seeking ways to incorporate wellness into various aspects of the guest experience. As wellness-minded travelers become more sophisticated, they are demanding a more integrated, multi-dimensional approach to wellness, from food to mood, sleep to movement –at properties and destinations.

Key wellness pillars that are driving bookings include nutrition, sleep health, movement, holistic treatments, meditation and mindfulness in addition to advanced integrative wellness programs that use smart technology to develop personalized programs for interested guests. Hotels are embracing these trends through low-cost investments such as trendy juice menus and running or walking maps of the local area. On the meetings front, coffee breaks are becoming a cornucopia of healthy treats rather than high-calorie sweets.

Alternatively, a hotel's online recipe catalog can also be an opportunity to build upon the reach of an established influencer, as Homewood Suites by Hilton's opted to do when the brand partnered with Kevin Curry and Fit Men Cook to create a wholesome recipe collection. These easy-to-prepare, healthy menus are featured on Homewood Suites' website. This virtual cookbook responds to guests' desire to keep fit on the road by providing them with recipes they can make in their suite's fully equipped kitchens. It's a marketing tactic that can keep wellness-minded travelers engaged with a hotel's online presence and requires little more than the investment of time on the part of a designated person on property.

Fitness travel, too, has become a micro-tend within the wellness category and health club chain Equinox is riding the wave. The fitness brand is set to open its first hotel early this summer. Other hotels can still compete. Fitness retreats –vacations with a fixed itinerary filled with workouts, wellness experiences and feel-good foods-are also gaining ground.

There's also a greater willingness among forward-thinking hoteliers to bring in big ticket innovations like natural, hand-made mattresses with cotton bedding and built-in motion detectors that track how guests sleep based on an individual's sleep data so that in-house staff can suggest customized therapies to improve sleep outcomes.

On the flip side, hoteliers aren't obligated to bring new technology or major investments to the table if they are to make their mark in the wellness travel arena. For example, Zoëtry Paraíso de la Bonita in Mexico, part of Apple Leisure Group's all-inclusive subsidiary AMResorts, offers spa guests excursions into a nearby Temazcal – the ancient Aztec and Mayan version of a sweat lodge-to purge their mind, body and soul of toxins-in a traditional Shaman-led ceremony created by the hotelier.

Competition among major international hotel brands is also pioneering new wellness services and amenities such as: Sleep enhanced rooms featuring air purifiers; mood light simulators to minimize jet lag and sleep disruption; aromatherapy scent choices; and showerhead options that reduce chlorine to keep hair and skin soft and smooth. Some programs also provide guests with downloadable, guided meditation podcasts and online sleep, nutrition and stress-management programs.

Targeting the Wellness Traveler

Wellness travel is trending as more affluent consumers integrate wellness into their lifestyles. But as wellness is no longer the exclusive domain of luxury spas, its accessibility has also incentivized average consumers to strive for healthier life choices. In both of these segments are travelers whose primary motivation is wellness and whose primary trip purpose is to improve their well-being. In fact, a growing number of wellness travelers consider this a secondary aspect of their trip. They seek to maintain their salubrious lifestyles or engage in ad hoc wellness experiences during their regular leisure and business travel although they are not actively pursuing an immersive wellness vacation.

The Global Wellness Institute's October 2018 Global Wellness Economy Monitor reported this group accounted for 89 percent of wellness tourism trips and 86 percent of expenditures in 2017. And, international wellness tourists spent 53 percent more than the typical tourist, on average $1,528 per trip while domestic wellness travelers spent $609 per trip, 178 percent more than their non-wellness counterparts.

Keep in mind that all of these aforementioned groups are booking more than a room. They are also paying for an experience that at least to some extent is personalized to suit their specific wellness interests. Many hotels are taking notice and implementing a variety of tactics to create more bespoke wellness experiences for individual guests. One approach is to request information from guests in advance of their arrival to offer targeted nutritional advice and suggest specific fitness and wellness activities offered on property.

Wellness travelers with health as their primary trip objective are linked to repeat business. The Horwath report found the wellness guest tends to have a higher repeat guest visit ratio (40 to 50 percent). They typically spend significantly longer researching various wellness program options than traditional tourists. So dedicated wellness resorts receive 39 percent of bookings through the brand website and other forms of direct bookings make up an additional 35 percent of reservations. These guests are also more apt to book through a specialized travel agent than they are through an online travel agency (OTA) or a global distribution system (GDS).

Nevertheless, the booking phase remains at the bottom of the funnel for both primary and secondary wellness guests. Capturing this niche segment as they seek inspiration for their next trip and begin researching it necessitates a breakout brand with a clear message and solid offering can rise amidst a crowded landscape.

Communicating a Distinct Wellness Message

Hotels must position their wellness offerings as fresh and compelling in order to lead in this segment. As much as wellness is its own niche, it still falls into the overarching trend of experiential travel where there's a lot of clutter to cut through in terms of marketing messages. Partnerships are one means of reaching these future hotel guests. Health club aggregator ClassPass is among the latest newcomers to the sphere. Hotels are also building alliances with local wellness experts and brands, marrying the wellness traveler's interests with the current travel trend to experience a destination like a local.

But this is only half of the equation. Travelers also want to know that they are purchasing their next wellness experience from an operator with a sound reputation for teaching or enhancing the ability to be at one's personal best.

Hoteliers need to consider whether they have competitive or unique wellness travel options by seeking guest feedback, analyzing industry data and allocating the proper time and budget to back their claims. Those with solid programs then need to focus on getting the word out to their target audiences and ambassador networks.

Also, marketing efforts must be integrated to reach travelers both online and off and tap effective communications strategies which should include paid and earned media and shared and owned content. In more simple terms, hotels and travel brands should have consistent messaging about their offerings, promoting them in pre- and post-travel as well as during the guest's stay via digital marketing on the brand site and third-party sites. Social media should also be included in the mix to tease and engage prospective guests regarding activities that can heighten their experience.

Further considerations are to ensure on-property signage is strategically placed to remind and encourage guests to take advantage of on-site wellness experiences. Additionally, influencers that can reach the desired customer must be educated on the hotel's offerings to effectively cultivate relationships that have their audiences talking about the hotel and broadening its marketing reach.

The Final Word

Hotels should seriously consider including wellness services and amenities, and well promote them to access this lucrative segment of travelers. The approach among successful hospitality players is high-touch, personalized and adaptable to the increasing wellness expectations of today's travelers.

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You hereby authorize HotelExecutive's Internet Payment Service Provider to charge your credit card to pay for your membership to HotelExecutive. You further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card for any and all purchases of products, services in association with HotelExecutive. You agree to be personally liable for all charges incurred by you in association with your access or other use of any content provided by HotelExecutive or any third party in association with HotelExecutive. You acknowledge and agree that your liability for all such charges shall continue after termination of your access or any type of membership arrangement with HotelExecutive.

In the event that you have chosen to have your membership automatically rebilled, unless and until you notify HotelExecutive that you wish to cancel or terminate your membership to HotelExecutive, you hereby agree and authorize HotelExecutive's Internet Payment Service Provider to automatically renew your membership to HotelExecutive on a continuing basis and to charge your credit card (or other payment means you have selected) to pay for the ongoing cost of your membership. You hereby further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card (or other approved payment means you have selected) for any and all purchases of products, services and entertainment provided to in, at, through or in association with HotelExecutive.

13. PRIVACY POLICY

The following is the Privacy Policy for HotelExecutive

We can be reached via telephone, email, or online at our contact page. When you visit our site we do not log any information regarding your domain or email address. Information Sharing: We do not share user information with any third parties other than via press release distribution as described below.

Hotel Newswire is a newswire service that distributes press releases on behalf of our users. If you decide to submit a press release for distribution through our system we will transmit your entire press release including any personal information therein contained to our media contacts and online distribution points including search engines. This is the only redistribution of your information that we engage in. Your submission of press releases through our system indicates consent with this policy. The information we collect during your registration process is used to notify users about updates to our service and inform users of any special events hosted by Hotel Newswire. This information is not shared with other organizations for commercial or non-commercial purposes.

Cookies: Our system requires the use of cookies to enable the user to log back into our website to access information from the newswire, without having to log in each time using the required username and password.

If you do not want to receive email from us in the future, please let us know by following instructions included in our communication with you. Users who supply us with telephone numbers online may receive telephone contact from us regarding their account, or informing them of new products and services available on the HotelExecutive website. If you do not wish to receive such telephone calls, please edit your account and remove your phone number from your account profile. This can be done from your user account menu.

Ad Servers: We do not partner with or have any relationship with any ad server companies. From time to time, we may use customer information for new uses not previously disclosed in our privacy notice. If our information practices change at any time, we will post the policy changes to our website to notify you of these changes and provide you with the ability to opt out of these new uses. If you are concerned about how your information is used, you should check back at our website periodically.

Upon request we provide site visitors with access to all information (including proprietary information) that we maintain about them. Users can access this information by logging in to their account.

Security: We always use industry-standard encryption technologies while transferring and receiving user data exchanged with our site. We have appropriate security measures in place in our physical facilities to protect against the loss, misuse, or alteration of information that we have collected from you on our site. We do not store credit card information in our systems.

If you feel that this site is not following its stated information policy, you may contact us.

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