PRODUCT NEWS
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| Spa operators reveal KPIs to promote benchmarking |
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| 26 Feb 2015 . BY Helen Andrews |
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| Rachael McCrory noted there are more male guests at Hyatt spas in Asia – 52 per cent – than female guests, 48 per cent / Rachael McCrory |
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Spa managers from operations of different sizes and in different countries around the world gathered to discuss the importance of benchmarking at the Professional Spa & Wellness Convention at ExCeL in London between 22-23 February.
Taking the first step towards a more successful spa industry, Rachael McCrory - director of spa at the Andaz Tokyo & Grand Hyatt Tokyo - shared key performance indicators (KPIs) for Hyatt spas with attendees. She was joined by Alex de Carvalho, vice chair of the UK Spa Association; Marion Hayden, spa manager of the Oceo Spa in Ireland; Stavros Mavridis, spa manager of the Amanzoe spa in Greece; and Don Camilleri, consultant for UK-based Hospitality and Leisure Concepts.
McCrory outlined Hyatt’s plan for expansion before detailing the group’s KPIs. She said the group currently has 69 spa and fitness locations across Asia and there are seven new openings planned for 2015 – all of which are located in China. 2016 will see a further 14 properties added to the Asian portfolio, 10 of which will be in China and then in 2017, 17 will open in Asia – 10 of which will again be in China.
According to McCrory’s figures for 2014, the average treatment spend per guest is €107 (US$122, £78) at a Hyatt spa. The average treatment revenue per hour across these Hyatt spas is €35 (US$40, £26). The average retail sale to service ratio is 10 per cent, and the average therapist utilisation percentage is 42.
McCrory noted there are more male guests at Hyatt spas in Asia – 52 per cent – than female guests, 48 per cent. Massage continues to be the most sought-after treatment at these spas, at 69 per cent. The average hotel guest capture is 3 per cent, but the local guest capture is 24 per cent.
The difference between urban and resort Hyatt spa locations was highlighted by McCrory. The average retail sales to service percentage at an urban location is 15 per cent, compared to 3 per cent at resort spas. The therapist utilisation is similar in both kinds of facilities – 44 per cent at urban spas and 43 per cent at resorts. The facility utilisation is higher at urban locations, 13 per cent, than at resorts – 9 per cent. Urban resorts capture, on average, 2 per cent of hotel guests in comparison to 6 per cent of local clientele. Couples’ treatments are more popular at resort locations, 15 per cent, than at urban facilities – 6 per cent.
With the understanding that China is the main driving force for the Asian market, McCrory has broken up the figures to compare the Chinese market with the rest of the Asian countries’ Hyatt spas. While the average treatment spend in Chinese Hyatt spas is €99 (US$112, £73), other regional countries measure an average spend of €107 (US$122, £78). Therapist utilisation is also higher in the surrounding countries, at 41 per cent, compared to Chinese therapist utilisation of 36 per cent. Facility occupancy is lower in China, 6.3 per cent, than in other Asian areas – 11 per cent. Massage is even more popular in China, 74.5 per cent, than in other Asian locations – 69 per cent. While hotel guest capture in regional spas is 3 per cent, Chinese spa locations capture 1.6 per cent of hotel clients.
Alex de Carvalho spoke about the UK spa market, highlighting the UK Spa Association’s benchmarking data – based on information submitted confidentially from 80 spas across the region. Carvalho said there are 2,900 spas in the UK, which represent an annual turnover of £1.2bn (US$1.9bn, €1.6bn). There are approximately 53,000 people employed in the UK spa market, which is the eighth largest spa market in the world – the largest is the US spa market.
Don Camilleri, who consults for UK forest leisure holiday company Center Parcs, outlined the operation’s facts and figures. Since 2001, there have been five spa locations developed at the leisure retreats known as Center Parcs. These spas have a combined total of 120 treatment rooms, 75 thermal experiences, 400 spa professionals and they serve approximately 500,000 guests a year. Staff turnover is reported to be less than 25 per cent.
The turnover forecast for the end of the financial year 2014/2015 is forecast to be £21m (US$33m, €29m). This means the average growth per year of the business is more than six per cent.
Unlike many spas with thermal zones, Center Parcs is able to capitalise on this asset at the Woburn Forest because the facilities are so extensive. Entry revenue represents 47.5 per cent of the spa’s income. It costs £45 (US$70, €61) for the average three-hour thermal ‘World of Spa’ experience. Treatment revenue is 34.9 per cent of the spa’s income, with the average treatment spend per client being £70 (US$108, €95). Retail revenue represents 9 per cent of income and food and beverage comes in at 8.7 per cent.
Treatment room occupancy is 40 per cent, while average revenue per treatment room is £54,000 (US$84,000, €74,000) per annum. Staff costs represent 22 per cent of the spa’s budget.
Average treatment time is 60 minutes and 75 per cent of all bookings are done in advance and/ or online.
Stavros Mavridis is spa director of Amanzoe spa in Greece, a 38-suite resort in Porto Heli, which opened in August 2012. He noted that a third party consultant was brought in to help increase the retail sales at this property and they have consequentially risen by 47 per cent. The spa – which has nine treatment rooms, a hair salon, fitness centre and a pilates/ yoga studio – has experienced an increase in gross revenue of 13 per cent and retail revenue has gone up by 54 per cent since it opened. There is an expected revenue rise forecast for the end of 2015 of 17 per cent.
Average treatment price at this Greek spa is €110 (US$125, £81). This has gone up 7 per cent since 2013. The average treatment time takes 75 minutes. Treatment room occupancy is 25 per cent, treatment revenue is 74 per cent, fitness revenue is 16 per cent and the spa capture rate is 30 per cent – up 7 per cent from 2013. The average revenue per treatment room is €38,000 (US$43,000, £28,000).
Marion Hayden, spa manager of the Irish award-winning Oceo Spa told attendees that the treatment revenue represents 83 per cent of the spa’s income, retail revenue accounts for 14 per cent and food and beverage is 3 per cent.
The revenue per treatment room adds up to €58,000 (US$66,000, £43,000) per year. The spa’s payroll makes up 33.5 per cent of the business’ outgoings. The average treatment spend per client is €73.20 (US$83, £54).
The average treatment time at this spa is 44 minutes and advance bookings are made by 90 per cent of the customers – the other 10 per cent are classed as ‘walk-ins’. 35 per cent of the spa’s clients are repeat customers. In terms of the spa’s clients, 94 per cent are female and 6 per cent are male. Hayden mentioned this is a figure the spa is working on, but the cultural attitude to visiting a spa is still mainly negative for men in Ireland.
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