Aspects of spa and wellness are being incorporated into other areas of the hotel creating a ripple eff ect
Both urban and resort hotel spas achieved a greater growth in revenues compared to their change in operating expenses, showing that these departments are becoming more effi cient in their operations
Rising spa revenues The Trends® in the Hotel Spa Industry survey shows that in 2013, both urban and resort hotel spas in the US saw revenues grow by 7.7 and 3.6 per cent respectively. On a per occupied [hotel guest] room (POR) basis, urban hotel spas saw a greater increase in total spa department revenue, driven by a combination of a rise in customers and an upturn in revenue per treatment and revenue per customer. Revenue per treatment increased 3.2 per
cent in urban hotels, while resort hotels experienced a decrease of 1.2 per cent. Revenue per customer in urban hotels went up by 1.3 per cent, compared to going down by 1.3 per cent in resorts. Yet, capture rates – calculated by dividing total occupied hotel rooms by total number of treatments from hotel guests – was much lower in urban hotel spas. On average spa capture rates sat at 7.8 per cent in 2013. Resort spa capture rate was 11 per cent and the urban spa capture rate was 4.6 per cent. With this in mind, PKF attributes a portion of the success in urban hotels to effective revenue management and selling techniques.
TABLE 1
Select Hotel Spa Revenues. Change from 2012 to 2013
Revenue source Total department revenue
Change 4.6%
Massage 4.9% Skincare / body work Salon services Daily facility use
2.6% 3.1%
Fitness and personal training Membership fees
Source: PKF Hospitality Research, 2014 Trends® in the Hotel Spa Industry
11.1% 16.8% 5.5%
Retail 4.8%
combined (see Table 1). This is slightly more than the increase in total treatment revenue which grew by 4.2 per cent. The good news is that spas are finally
seeing a return to spending on retail and product merchandise in addition to treatments. Retail revenue rose at urban and resort hotel spas, by 10.4 and 3.3 per cent respectively, which is a healthy sign.
Hotels are continuing to reach out to
locals to boost spa revenues. By pursuing local patrons, they can decrease the volatility of spa revenues relative to occupancy patterns and shift demand to off-peak periods. Daily facility use, fitness and personal training and membership fees, typically associated with locals and non-hotel guests, grew by 4.5 per cent
Controlling expenses An increase in hotel spa revenues is welcome and, even better, these were passed through to the bottom line. Both urban and resort hotel spas achieved a greater growth in revenues compared to their change in operating expenses, showing that these departments are becoming more efficient in their operations. As spas are a ‘high touch’ experience,
labour remains the highest expense. As spa department revenues increase, it’s no surprise that staff costs accumulated compared to the prior year as well. Labour expenses at all hotel spas in the US increased 2.6 per cent in total in 2013, while the percentage of total labour
©CYBERTREK 2015
spabusiness.com issue 1 2015 75
PHOTO: SHUTTERSTOCK/GOODLUZ
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