Spa-tastic Trends January 08, 2008 Spa profits are on the rise
By Stacy Straczynski
When seeking out the newest incentive travel hot spots this year, make sure to focus in your destination radar on hotel spas. Spas, and the luxury services they provide, are on the up and up, according to recent research.
Today's demand for healthier lifestyles and work-life balance has created a positive trend for the hotel spa industry over the last several years. Results of the Atlanta-based PKF Hospitality Research's "2007 Trends in the Hotel Spa Industry" study show the industry is doing better-than-well, with respondents reporting significant revenue and profit increases since 2006.
"Over the past decade, hotels across the nation have added spa operations to meet escalating consumer expectations and to increase revenues and profits," says PKF-HR President Mark Woodworth. "A growing number of people are…demanding spa services when they travel. Further, by offering and promoting spas to their guests, hotels have generated increased interest in pampering and luxurious spa experiences."
And the results show that those additions have paid off: Hotel spa revenues have increased a total of 9.7 percent, leading to an overall 11.3 percent increase in profit since 2006.
The survey is a comprehensive analysis of operating statements from 147 hotels that offer spa services on-premises, which includes 46 resort spas and 17 urban hotel spas. Year-to-year changes were examined according to location and revenue category. Total gains were determined on a per-square-foot or per-revenue-station value, totaling averages of $130.62 and $115, 823 respectively in 2006.
Incentive planners should take note of this gain—and the areas contributing to top revenue growth—when setting up their rewards and travel perks at hotel spas. The survey found that the largest source of revenue (at 73 percent) was in treatments, with massages leading the way.
The reason for this is "…most consumers are unaware of or may be intimidated by more exotic spa treatments and, therefore, tend to gravitate towards the norm," says PKF-HR Los Angeles-based Senior Vice President Bruce Baltin. "Second, nothing beats a massage when you are seeking a relaxing and indulgent experience. Finally, as more men are taking advantage of spa services, they tend to be drawn to massages as their treatment of choice."
Planners looking to set-up pre-existing appointments for their employees should keep treatments to more traditional low-key set, or even arrange with the hotel a budget where the employee can choose his own spa treatment within a certain price range to obtain maximum reward satisfaction.
Those interested in purchasing a copy of the 2007 Trends in the Hotel Spa Industry report in PDF format should visit www.pkfc.com/store, or call (866) 842-8754.
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