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Smith Travel Research (STR) first launched the SpaSTAR report in 2007 as an online benchmarking tool for hotel and resort spas. Its defi nitions are based on the uniform system of accounts for the spa industry by the International Spa Association (ISPA) which has been sponsoring the report since 2010. It’s free to participate in and receive a monthly SpaSTAR report which out- lines nationwide metrics on nine spa performance indicators providing val- uable and much-need information to spa operators. However, there is a fee for competitive set analysis. Sign up today: www.spa.str.com


The question for operators in 2013 is how to increase salon station utilisation since revenue gains seem to be hard to come by.


RETAIL SALES Rather than provide a total retail sales num- ber per spa we calculate the average retail spend per treatment. This number has declined over time and now stands at US$18 (¤14, £12), down from US$23 (¤18, £15) in 2010. Since the average treatment room utilisation has declined, as discussed, and assuming that the treatment room avail- ability has remained somewhat static this can be interpreted to mean that treatments and total retail sales have both declined. In any case, this decrease is probably the most remarkable fact in this feature since it could be argued that the decline in this number hits the spa bottom line dispropor- tionately. If spa managers could increase one number to make spas more profita- ble that number is probably the amount of retail revenue.


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SUMMARY In 2012, the US luxury hotel industry con- tinued to recover demand and the average daily room rate (up 4.6 per cent) that was given up during the 2009 economic slowdown. The next step forward is to continue increases by pushing auxiliary revenues in other departments such as F&B, meetings and spa. As demand for hotel rooms increases


it is more important than ever to target hotel guests and make spa treatments accessible by providing an attractive value proposition. Treatments and salon service offerings need to be communicated effec- tively to increase utilisation and ultimately treatment and service revenues. Spa retail revenue is more profi table than the other spa departments so extra care needs to be taken to increase retail revenues from existing guests.


Progressing through 2013 we are expect- ing that as the ongoing hotel recovery fi nally spills over, we will be able to show


Many spas need to address the problem of declining retail sales as this can be one of the most profi table areas


some positive results on the spa side. We are expecting room occupancies in luxury hotels to continue to grow, so now it is time to start bringing more of those hotel guests into the spa. ●


ABOUT


THE AUTHOR Jan Freitag is the senior vice- president at Smith Travel Research (STR) which offers its hotel STAR benchmarking to more than 43,000 chains globally. He’s also responsible for growing the STAR report in other areas and sectors with the spa industry being an obvious fi t. Prior to STR, Freitag focused on hospitality consulting for hotelreports. com and Ernst & Young in the US. Email: jan@str.com


spa business handbook 2013 113


TYLER OLSON/ SHUTTERSTOCK.COM


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