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As spas reach peak revenues, now’s the time for our industry to act as a catalyst in working out how we measure the impact of an experience and the ‘return on wellness’
By Katie Barnes | Published in Spa Business 2020 issue 1
Spa is now one of the top performing departments in hotels / shutterstock
It’s positive and encouraging to see a number of studies reporting strong performance indicators in hotel spas recently, with some types posting record revenues.
The latest research from hotel advisory firm CBRE shows that spa is now one of the top performing departments in US hotels (see p32). Its 2019 Trends in the Hotel Spa Industry found that while total hotel revenue in its sample of 159 hotels increased by 3.8 per cent, spa departments grew by 4.8 per cent. The greatest rise occurred in hotels with less than 200 rooms which had a revenue jump of 13.3 per cent.
At the same time, HVS consulting has revealed that in the US, on average, “spa and wellness departments run profitably and can contribute significantly to a hotel’s bottom line”. In its second annual 2019 HVS Performance Report: Spa Department, it found that treatment rooms in luxury hotels generate US$257k in revenue a year – more than double the average for upper-upscale hotels (see p28).
Both of these reports follow the 20th edition of ISPA’s US Spa Industry Study which shows that facilities across the US generate US$18.3bn in revenue and that all key financial indicators in spas have risen steadily over the last nine years.
After years of having to justify their viability, now is the time for spas to shine. And their position can be further elevated by proving their worth when it comes to a new, as yet unmeasured, KPI – ‘return on wellness’.
With the booming trend of wellness extending beyond spas into all hotel departments, global corporations are grappling with putting a value on what wellness adds to the bottom line. What is an individual’s wellness level before and after a stay/experience and how does this impact on customer loyalty, for example, or other spending patterns?
No one has cracked the code for this yet and spas – a linchpin of wellbeing in hotels – are the perfect testbed for first defining and then measuring the return on wellness for the wider hotel business.
Read more from this issue of Spa Business magazine
View contents of Spa Business 2020 issue 1
Editor's letter: Time to shine
As spas reach peak revenues, now’s the time for our industry to act as a catalyst in working out how we measure the impact of an experience and the ‘return on wellness’ says Spa Business' editor Katie Barnes
Promotional feature: TechnoAlpin
If you want to deliver a hot and cold experience as part of your wellness programme, adding a snowroom will introduce a delightful and more gentle form of cold therapy, as Sara Brenninger explains
Trends: Spa Foresight™
Climate emergency, gen alpha and brain optimisation are among Spa Business’ latest trend predictions
Promotional feature: The Wellness
Investing in children’s facilities gives a spa and wellness offering a competitive edge, as well as helping the next generation achieve their potential, explains Mohammed Ibrahim, CEO of industry design and consultancy practice, The Wellness
Promotional feature: RKF Luxury Linen
As a symbol of luxury, innovation and quality in the world of spa and hospitality, much of RKF Luxury Linen’s success comes from its highly client-centric design process, says CEO Riadh Bouaziz
Design: Heat of the moment
From giant golden eggs and converted ski lifts to rustic, hand-crafted huts, we showcase the latest in heat experience design and innovations
In today’s premium spa environment, every detail shapes the guest experience – right down to
the softness of towels and the freshness of linens. [more...]
As spas reach peak revenues, now’s the time for our industry to act as a catalyst in working out how we measure the impact of an experience and the ‘return on wellness’
By Katie Barnes | Published in Spa Business 2020 issue 1
Spa is now one of the top performing departments in hotels / shutterstock
It’s positive and encouraging to see a number of studies reporting strong performance indicators in hotel spas recently, with some types posting record revenues.
The latest research from hotel advisory firm CBRE shows that spa is now one of the top performing departments in US hotels (see p32). Its 2019 Trends in the Hotel Spa Industry found that while total hotel revenue in its sample of 159 hotels increased by 3.8 per cent, spa departments grew by 4.8 per cent. The greatest rise occurred in hotels with less than 200 rooms which had a revenue jump of 13.3 per cent.
At the same time, HVS consulting has revealed that in the US, on average, “spa and wellness departments run profitably and can contribute significantly to a hotel’s bottom line”. In its second annual 2019 HVS Performance Report: Spa Department, it found that treatment rooms in luxury hotels generate US$257k in revenue a year – more than double the average for upper-upscale hotels (see p28).
Both of these reports follow the 20th edition of ISPA’s US Spa Industry Study which shows that facilities across the US generate US$18.3bn in revenue and that all key financial indicators in spas have risen steadily over the last nine years.
After years of having to justify their viability, now is the time for spas to shine. And their position can be further elevated by proving their worth when it comes to a new, as yet unmeasured, KPI – ‘return on wellness’.
With the booming trend of wellness extending beyond spas into all hotel departments, global corporations are grappling with putting a value on what wellness adds to the bottom line. What is an individual’s wellness level before and after a stay/experience and how does this impact on customer loyalty, for example, or other spending patterns?
No one has cracked the code for this yet and spas – a linchpin of wellbeing in hotels – are the perfect testbed for first defining and then measuring the return on wellness for the wider hotel business.
Read more from this issue of Spa Business magazine
View contents of Spa Business 2020 issue 1
Editor's letter: Time to shine
As spas reach peak revenues, now’s the time for our industry to act as a catalyst in working out how we measure the impact of an experience and the ‘return on wellness’ says Spa Business' editor Katie Barnes
Promotional feature: TechnoAlpin
If you want to deliver a hot and cold experience as part of your wellness programme, adding a snowroom will introduce a delightful and more gentle form of cold therapy, as Sara Brenninger explains
Trends: Spa Foresight™
Climate emergency, gen alpha and brain optimisation are among Spa Business’ latest trend predictions
Promotional feature: The Wellness
Investing in children’s facilities gives a spa and wellness offering a competitive edge, as well as helping the next generation achieve their potential, explains Mohammed Ibrahim, CEO of industry design and consultancy practice, The Wellness
Promotional feature: RKF Luxury Linen
As a symbol of luxury, innovation and quality in the world of spa and hospitality, much of RKF Luxury Linen’s success comes from its highly client-centric design process, says CEO Riadh Bouaziz
Design: Heat of the moment
From giant golden eggs and converted ski lifts to rustic, hand-crafted huts, we showcase the latest in heat experience design and innovations
Mandarin Oriental has announced a standalone residence brand, Mansions, which will debut at
Emirates Palace, Mandarin Oriental Mansions, Abu Dhabi, in 2029.
Four Seasons Resort The Nam Hai in Hoi An, Vietnam, has put together a Global Wellness Day
(GWD) agenda with activations rooted in nature and shaped by four pillars of Joy – in
alignment with the day’s theme #JoyMagenta.
The Global Wellness Summit (GWS) will celebrate its 20th anniversary at the 2026 event in
Phuket, Thailand, later this year with the theme: The Science, Art and Soul of Wellness.
Auko, an all-inclusive development, is opening in Phong Nha in Vietnam in Q3 2026, with a
series of 30 tented eco-lodges and wellness hospitality operations by Lumina Wellbeing.
Therme Manchester’s 28-acre development, which will include interconnected glass pavilions
that measure 65,000sq m, will be the largest bathing and wellbeing attraction in the world once
complete, according to prof David Russell, CEO of Therme UK.
Naples Beach Club, a Four Seasons Resort, has opened a 2,800sq m spa called The Sanctuary,
with the design and concept inspired by the Native American people that populated Florida’s
Southwest coast – the Calusa.
Swire Hotels’ luxury hospitality brand Upper House has revealed it will roll out its two-day
House of Healing retreats at its three hotels in Hong Kong, Chengdu and Shanghai.
LVMH-owned beauty house Guerlain will launch up to five spas with partners a year as part of
its plan to expand globally, according to the brand’s international spa and wellness director,
Diane Davody.
A new global study by Kevin Kelly and Peter Yesawich, called WELLSurvey 2.0, has revealed
more than half of consumers in the UK, US and Germany would not choose numerous high-
profile wellness resort brands for a future trip.
In today’s premium spa environment, every detail shapes the guest experience – right down to
the softness of towels and the freshness of linens. [more...]
