In a previous article, we explored how urban hotel spas could overcome the unique challenges they face. In this article, we’ll take a closer look at resort spas.
As a rule of thumb, when it comes to hotel spas, resort spas enjoy higher hotel guest capture rates than urban hotel spas. This is because guests in resort destinations travel predominantly for leisure purposes – people are either on holiday, wanting to explore a new destination, or looking to relax and unwind. These guests are therefore more likely to visit the resort’s spa.
However, although resort spas generally enjoy better hotel guest capture rates than urban hotel spas, resort spas have their own set of challenges:
- Increasing their hotel guest capture rate (as the spa relies mainly on the hotel guests for its revenue).
- Encouraging guests to visit the spa more than once during their stay.
- Competing with other activities at their resort or in their area.
Here are 5 ways resort spas can overcome these common challenges to drive their more business:
- Integrate Seamlessly with Your Resort
Hotel guests are resort spas' primary market. This is why resort spas must rely heavily on the rest of the hotel team to drive business. Make sure to build relationships with all hotel employees who are in constant contact with guests, from Front Office staff, Concierge, Housekeeping to Food and Beverage. Share your spa's news and daily promotions for other staff members to extend. Invite key team members to try spa experiences, and together with other department heads, develop attractive incentive programs to encourage cross-selling initiatives. A fully integrated spa team will give you the support you need to drive more visits.
2. Tap into the Bigger Picture
Total spa revenue generally represents anywhere from 1% to 10% of total hotel revenue. This is why spa managers sometimes feel that their general manager only pays 10% of their attention to the spa. However, being a part of a hotel ecosystem has its advantages. For example, you could tap into your hotel's loyalty program to add spa services, or work with your revenue and distribution manager to see how your spa can be included in different Room and Dining packages. With a spa management software that connects to your hotel's software, you can send targeted emails and promotions to the hotel's VIP guests, loyalty card holders, and other repeat guests, thereby securing more bookings.
3. Focus on Frequency
Resort guests tend to have a longer average stay than urban hotels and are also more likely to visit the hotel spa, but that doesn’t necessarily mean that these guests will have more than one spa treatment during their stay. Implementing a dynamic pricing policy, combining treatments with other wellness activities into attractive packages, incorporating regional therapies into your treatment offerings, and creating activities that allow children to get involved will encourage guests to visit your spa more frequently during their stay. Spas are increasingly becoming social and family spaces, so you should adapt your menu accordingly.
4. Price for Your Region
Be relevant in terms of your pricing strategy and service offerings. It’s challenging to charge the same price for services across the globe. Your client might be prepared to spend over $200 for a massage in the US, but might not be willing to do so in a spa in Cambodia. Adapting your price points and treatment menu to your location and client mix will make hotel guests more likely to book multiple services with your spa.
5. Leverage Treatment Duration
In the hotel industry, the average length of stay in resort hotels tends to be longer than in urban hotels. Similarly, in resort spas, the average treatment time tends to be longer than in urban hotel spas (up to 80 minutes). Leverage this time advantage to increase spa occupancy and average treatment rates and decrease time wasted in treatment turnover during your peak hours. It is easier to charge more for longer treatments, while still maintaining product costs. For example, the product cost for an 80-minute massage is roughly the same as that for a 50-minute one, but you can charge much more for a longer service.
Resort spas that focus on encouraging hotel guests to visit the spa more frequently during their stay will be better equipped to drive their businesses forward. The way you market your spa and cater to resort client is pivotal. The more visible and integrated your spa is, and the more creative you are in developing tailored packages, the more willing your clients will be to visit to your spa multiple times during their stay.
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