Spa Profit Maximization: How to go from revenues to profits
By Judy Singer President & Co-Owner, Health Fitness Dynamics, Inc. | July 01, 2012
Co-authored by Ben Campsey, CPA, MBA, CHAE, Director of Finance, The Umstead Hotel & Spa
Do you want your spa to be profitable? Do you want your spa to help improve your hotel's occupancy and increase the revenue per guest? If yes, have you invested any resources (money, training or coaching) to help your spa director to be a better financial business manager? If you haven't invested in educating your spa director to be a spa "business" director, don't expect your spa to be as profitable as it could and should be.
Most spa directors do not come with the business skills they need, and when they are on-the-job, they are not typically given the business training that will help them to maximize the spa's profit potential. One would think that with a multi-million dollar "bricks and mortar" investment in a spa venture, investing in training the spa director to be the best possible business manager would be a "common sense priority." Unfortunately, this is rarely the case...the reality is typically to provide minimal training and support, yet have high expectations related to performance and profitability. This disconnect presents a dilemma that is the biggest current and future challenge facing the spa and hospitality industry.
In the June 2012 study commissioned by the Global Spa & Wellness Summit, SRI International examined the many challenges faced by the global spa industry in "hiring strong, well-qualified spa management personnel, as well as the root causes of these challenges." Among the findings of SRI's study are the following (all of these points are quoted from the SRI study entitled "Spa Management Workforce and Education: Addressing Market Gaps: June 2012" as presented at the GSWS June 2012):
• One of the biggest challenges in the spa industry, as it exists now as well as in the future, is to find staff who have a "heart and soul" as well as "common sense and business."
• Spa businesses are facing a fundamental challenge in their management workforce – they are simply not able to find enough people with the right skills to fill management-level positions.