As spas reach peak revenues, now’s the time for our industry to act as a catalyst in working out how we measure the impact of an experience and the ‘return on wellness’
By Katie Barnes | Published in Spa Business 2020 issue 1
Spa is now one of the top performing departments in hotels / shutterstock
It’s positive and encouraging to see a number of studies reporting strong performance indicators in hotel spas recently, with some types posting record revenues.
The latest research from hotel advisory firm CBRE shows that spa is now one of the top performing departments in US hotels (see p32). Its 2019 Trends in the Hotel Spa Industry found that while total hotel revenue in its sample of 159 hotels increased by 3.8 per cent, spa departments grew by 4.8 per cent. The greatest rise occurred in hotels with less than 200 rooms which had a revenue jump of 13.3 per cent.
At the same time, HVS consulting has revealed that in the US, on average, “spa and wellness departments run profitably and can contribute significantly to a hotel’s bottom line”. In its second annual 2019 HVS Performance Report: Spa Department, it found that treatment rooms in luxury hotels generate US$257k in revenue a year – more than double the average for upper-upscale hotels (see p28).
Both of these reports follow the 20th edition of ISPA’s US Spa Industry Study which shows that facilities across the US generate US$18.3bn in revenue and that all key financial indicators in spas have risen steadily over the last nine years.
After years of having to justify their viability, now is the time for spas to shine. And their position can be further elevated by proving their worth when it comes to a new, as yet unmeasured, KPI – ‘return on wellness’.
With the booming trend of wellness extending beyond spas into all hotel departments, global corporations are grappling with putting a value on what wellness adds to the bottom line. What is an individual’s wellness level before and after a stay/experience and how does this impact on customer loyalty, for example, or other spending patterns?
No one has cracked the code for this yet and spas – a linchpin of wellbeing in hotels – are the perfect testbed for first defining and then measuring the return on wellness for the wider hotel business.
Read more from this issue of Attractions Management magazine
View contents of Attractions Management 2020 issue 1
Editor's letter: Time to shine
As spas reach peak revenues, now’s the time for our industry to act as a catalyst in working out how we measure the impact of an experience and the ‘return on wellness’ says Spa Business' editor Katie Barnes
Promotional feature: TechnoAlpin
If you want to deliver a hot and cold experience as part of your wellness programme, adding a snowroom will introduce a delightful and more gentle form of cold therapy, as Sara Brenninger explains
Trends: Spa Foresight™
Climate emergency, gen alpha and brain optimisation are among Spa Business’ latest trend predictions
Promotional feature: The Wellness
Investing in children’s facilities gives a spa and wellness offering a competitive edge, as well as helping the next generation achieve their potential, explains Mohammed Ibrahim, CEO of industry design and consultancy practice, The Wellness
Promotional feature: RKF Luxury Linen
As a symbol of luxury, innovation and quality in the world of spa and hospitality, much of RKF Luxury Linen’s success comes from its highly client-centric design process, says CEO Riadh Bouaziz
Design: Heat of the moment
From giant golden eggs and converted ski lifts to rustic, hand-crafted huts, we showcase the latest in heat experience design and innovations
An opportunity to reimagine one of the UK’s most recognisable towers has been formally
opened by Rivington Hark, as St Johns Beacon invites operators and partners to shape its
next phase. [more...]
As spas reach peak revenues, now’s the time for our industry to act as a catalyst in working out how we measure the impact of an experience and the ‘return on wellness’
By Katie Barnes | Published in Spa Business 2020 issue 1
Spa is now one of the top performing departments in hotels / shutterstock
It’s positive and encouraging to see a number of studies reporting strong performance indicators in hotel spas recently, with some types posting record revenues.
The latest research from hotel advisory firm CBRE shows that spa is now one of the top performing departments in US hotels (see p32). Its 2019 Trends in the Hotel Spa Industry found that while total hotel revenue in its sample of 159 hotels increased by 3.8 per cent, spa departments grew by 4.8 per cent. The greatest rise occurred in hotels with less than 200 rooms which had a revenue jump of 13.3 per cent.
At the same time, HVS consulting has revealed that in the US, on average, “spa and wellness departments run profitably and can contribute significantly to a hotel’s bottom line”. In its second annual 2019 HVS Performance Report: Spa Department, it found that treatment rooms in luxury hotels generate US$257k in revenue a year – more than double the average for upper-upscale hotels (see p28).
Both of these reports follow the 20th edition of ISPA’s US Spa Industry Study which shows that facilities across the US generate US$18.3bn in revenue and that all key financial indicators in spas have risen steadily over the last nine years.
After years of having to justify their viability, now is the time for spas to shine. And their position can be further elevated by proving their worth when it comes to a new, as yet unmeasured, KPI – ‘return on wellness’.
With the booming trend of wellness extending beyond spas into all hotel departments, global corporations are grappling with putting a value on what wellness adds to the bottom line. What is an individual’s wellness level before and after a stay/experience and how does this impact on customer loyalty, for example, or other spending patterns?
No one has cracked the code for this yet and spas – a linchpin of wellbeing in hotels – are the perfect testbed for first defining and then measuring the return on wellness for the wider hotel business.
Read more from this issue of Attractions Management magazine
View contents of Attractions Management 2020 issue 1
Editor's letter: Time to shine
As spas reach peak revenues, now’s the time for our industry to act as a catalyst in working out how we measure the impact of an experience and the ‘return on wellness’ says Spa Business' editor Katie Barnes
Promotional feature: TechnoAlpin
If you want to deliver a hot and cold experience as part of your wellness programme, adding a snowroom will introduce a delightful and more gentle form of cold therapy, as Sara Brenninger explains
Trends: Spa Foresight™
Climate emergency, gen alpha and brain optimisation are among Spa Business’ latest trend predictions
Promotional feature: The Wellness
Investing in children’s facilities gives a spa and wellness offering a competitive edge, as well as helping the next generation achieve their potential, explains Mohammed Ibrahim, CEO of industry design and consultancy practice, The Wellness
Promotional feature: RKF Luxury Linen
As a symbol of luxury, innovation and quality in the world of spa and hospitality, much of RKF Luxury Linen’s success comes from its highly client-centric design process, says CEO Riadh Bouaziz
Design: Heat of the moment
From giant golden eggs and converted ski lifts to rustic, hand-crafted huts, we showcase the latest in heat experience design and innovations
A new immersive attraction designed to transport visitors into the final hours of ancient Pompeii
is preparing to open near the world-famous archaeological site in southern Italy.
Experience design company, BRC Imagination Arts, has completed a transition that sees founder
Bob Rogers pass ownership of the business to four long-serving senior executives, while
remaining actively involved with the company.
Movie Park Germany has opened a new Paramount Pictures-themed attraction as part of its 30th
anniversary celebrations, using immersive storytelling and adaptive reuse to reinforce the park’s
longstanding “Hollywood in Germany” positioning.
Therme Manchester’s 28-acre development, which will include interconnected glass pavilions
that measure 65,000sq m, will be the largest bathing and wellbeing attraction in the world once
complete, according to prof David Russell, CEO of Therme UK.
Efteling has opened Hooghmoed, a new family drop tower designed to broaden the appeal of its
recently launched Sirene Island themed area and introduce younger visitors to thrill attractions.
A proposed Puy du Fou development near Bicester and Universal Destinations and Experiences’
planned resort in Bedford are emerging as part of a wider transformation of the Oxford–
Cambridge Growth Corridor into a major centre for UK leisure and tourism inv
Shedd Aquarium has opened the Immersion Theater developed in partnership with SimEx-
Iwerks, as part of a wider strategy to enhance the guest experience and create additional
revenue opportunities.
The UK government has announced a temporary reduction in VAT on visitor attractions and
children’s meals as part of a summer cost-of-living support package designed to stimulate the
visitor economy and encourage family days out.
As designer Yinka Ilori prepares for his first solo gallery show in London, he speaks exclusively
to CLADmag about his mission to spread joy, the power of play, and his bold approach to using
colour (including the colours you won’t see in his work).
The government of Thailand is exploring plans for a THB300bn (£6.3bn, US$8.3bn)
entertainment complex in the country’s Eastern Economic Corridor (EEC), with officials
proposing a large-scale theme park and sports destination as part of a broader tourism and
economic development strategy.
An opportunity to reimagine one of the UK’s most recognisable towers has been formally
opened by Rivington Hark, as St Johns Beacon invites operators and partners to shape its
next phase. [more...]
