RESEARCH
Total treatment revenue grew by 4.2 per cent, slightly less than the rise in revenues from daily facility use
expenses to total spa department revenue decreased from 60.8 per cent in 2012 to 59.6 per cent in 2013. As demand increases for hotel spas, higher staffing levels are needed to create the same personal high-quality experience. One notable change PKF saw in 2013 was a decrease in payroll related expenses for spas with less than US$1m in revenue. It seems reasonable that this would be driven by a shift from full-time employees to part-time, on-call, and/or contract labour for which benefits are not offered. For spas with lower volume, this can be an effective cost-saving strategy. Due to an increase in revenues and the
controlling of expenses, hotel spas were able to see high percentage increases in total spa departmental income. Combined, all hotel spas averaged a 13.9 per cent growth in profits. Leading the way were urban hotel spas, which grew their bottom line by an outstanding 40.1 per cent (see Table 2), although it should be noted that as baseline numbers are not high to start with, a small rise in revenue can result in a higher percentage increase. Resort hotels achieved a smaller department profit growth of 8.4 per cent. Despite a lower overall growth in spa departmental profit, resort hotel spas saw higher profit margins than urban hotel spas, at 23.1 per cent compared to 17.7 per cent.
Unique opportunity With rising revenues, controlled expenses and a resulting increase in profits, the hotel spa industry in the US is performing
ABOUT THE RESEARCH
Trends® in the Hotel Spa Industry is an annual survey of hotel spa depart- ments in the US by PKF Consulting (PKFC). A total of 152 hotels submitted 2013 data for 20 of the most important revenue and expense categories in their spa department.
The report is intended
to give hotel spa owners and operators data to benchmark their revenue and expense ratios. It should be noted that day, destination and leased spa operations were not included in the survey sample.
76
spabusiness.com issue 1 2015 ©CYBERTREK 2015 Jenna Finkelstein,
a consultant at PKFC, contributed to this article. To see results from
the 2013 edition see Spa Business, issue 1 2014, p62 To purchase the full
2014 edition of Trends® in the Hotel Spa Industry visit
www.pkfc.com/store
well. As societal trends are moving towards healthier lifestyles, there’s a clear opportunity for spas to offer experiences to a broad guest base. The challenge for hotel spas will be to offer unique, high- quality experiences to more customers, while continuing to control costs. It will be important for hotel spas to
offer innovative treatments as consumers are ever-more driven toward unique experiences and this is what generates posts and shares and creates online trending. This is significant because a presence on social media is no longer a competitive advantage, but a necessity – all hotels and spas must engage with their customers online to remain in the mix. At the same time though, spas will still need to maintain approachability and an essence of wellness. Hotels can also use spa and wellness
elements throughout their properties to rise above rivals and differentiate
TABLE 2
Hotel Spa Department Profits* Change from 2012 to 2013
Type of hotel spa All hotel spas Urban hotels Resort hotels
*Does not include undistributed or fixed charges of hotel
Source: PKF Hospitality Research, 2014 Trends® in the Hotel Spa Industry
Change 13.9% 40.1% 8.4%
themselves. This will drive innovative and meaningful experiences that are Facebook- and Instagram-worthy, which will, in turn help increase the awareness of these offerings organically. Projections for economic growth in the
US remain strong and record occupancy levels are expected in 2015. The future looks bright for hoteliers and hotel spas have the opportunity to capture more guests and revenue. By offering engaging experiences, combined with the shifting societal trend to healthier lifestyles, the health and wellness of the hotel spa industry looks equally as bright. l
Andrea Foster is the national director of spa & wellness consulting for PKF Consulting USA Email:
andrea.foster @
pkfc.com
PHOTO: SHUTTERSTOCK/WAVEBREAKMEDIA
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