If you’ve ever asked yourself “are hotel spas worth the investment,” this might answer your question: in 2022, the global wellness tourism sector surpassed $814 billion market share, and 94 percent of travelers reported incorporating self-care into their travels, according to a report by Grand View Research. Beyond that, a study conducted by Health Fitness Dynamics found that 97 percent of resort and hotel managers believed that having an on-site spa was a marketing advantage, and 73 percent of respondents agreed that having a spa in their establishment increased occupancy rates. There’s no doubt that operating a spa is beneficial to hotels and resorts, but it’s not without its challenges.
While hotel spas offer a significant advantage, keeping them competitive requires constant innovation. Running a successful spa operation requires careful management, from staffing to keeping pace with the latest trends, attracting guests, and complying with safety regulations. Fortunately, spa management services like those from Arch Amenities Group can provide support in streamlining operations, elevating your spa’s reputation, and ultimately position it as a leader in guest well-being.
Here, discover five potential challenges in managing your own spa, and how a spa management company can support you.
1. Maintaining High-Quality Service
Problem: Consistently delivering high-quality services can be challenging due to varying levels of staff training and performance, if your spa is even properly staffed, that is. Many hotel spas report difficulty attracting and retaining qualified therapists due to the competitive job market and potentially lower wages compared to independent spas. This staffing issue can lead to scheduling conflicts and inadequate coverage during peak seasons, impacting your spa’s ability to maintain high-quality service.
Solution: A spa management company can implement standardized training programs and continuous professional development to ensure all staff members meet high-quality service standards. Arch Amenities Group has partnered with Forbes Travel Guide, the global authority on hospitality excellence, to create custom service guidelines specific to Arch Amenities; every team member is trained on service standards rooted in Forbes Travel Guide’s philosophy. For staffing issues, Hutchinson Consulting, an Arch Company, offers the industry’s most highly respected hospitality recruiting and talent sourcing partnership and expertise.
2. Attracting and Retaining Customers
Problem: With more than 19,782, health and wellness spa businesses in the U.S, the competition for guest attention has become fierce. Hotel spas in particular face the added challenge of standing out within their own establishments, where guests might have numerous on-site activities vying for their time and budget. Unfortunately, hotel spa managers often wear many hats, juggling day-to-day operations alongside the complex task of promoting and innovating their spa offerings. This lack of dedicated time and resources, coupled with potential budgetary constraints, can significantly hinder their ability to develop creative marketing campaigns and curate unique spa experiences that truly capture guest interest and drive revenue.
Solution: Spa management providers can develop and execute targeted marketing campaigns, loyalty programs, and special promotions to attract new customers and retain existing ones. Arch Amenities Group’s Local Spa Market Report, a Profiles by Arch product, helps spas pinpoint their local audience, identifying prospective target clients through insights into their demographics, behaviors, and interests. Arch-managed spas have access to a dedicated team of marketing experts who assist in facilitating best-in-class operations and procedures, including curating seasonal treatment menus and limited-time offers, conducting digital outreach via email and social media, staying on top of the latest spa trends, and managing strategic partnerships with equipment, product, and beauty companies.
3. Managing Operational Costs
Problem: Controlling operational costs while maintaining quality is a significant challenge for hotel and resort spas. Limited capital can restrict the range of services offered, potentially affecting guest satisfaction and revenue growth. Optimizing pricing strategies, managing inventory, and ensuring consistent bookings all require dedicated time and focus, impacting a spa’s overall revenue.
Solution: A spa management service can conduct regular financial audits, streamline operations, and negotiate better deals with suppliers to reduce costs without compromising quality, as well as provide expertise in revenue management and optimizing spa pricing. Many spa management firms also handle procurement and inventory management of spa products, ensuring cost-effectiveness. Hutchinson Consulting provides its spa consulting clients with pro-forma projections based on current market data combined with revenue and expense assumptions, developed over years of experience. They also help set up financial books according to industry records and create management tools to help clients stay on a successful path to profitability.
4. Keeping Up with Industry Trends
Problem: Staying current with the latest spa and wellness trends can be overwhelming, time consuming, and resource-intensive. This can lead to difficulty adapting your spa’s offerings and developing unique experiences that attract and keep guests. A stagnant spa menu can quickly become outdated, failing to cater to the evolving preferences of today’s wellness-focused traveler. This can lead to negative guest reviews and ultimately, lost revenue opportunities.
Solution: Spa management companies have dedicated teams that track industry trends and curate innovative spa experiences. They can recommend and implement new treatments and services based on guest preferences and current market demands. Having transformed hundreds of spas from boutique retreats to iconic resorts, Arch Amenities Group has had its finger on the pulse of the spa industry for decades and regularly reports on the top hotel spa trends and the best ways to implement them at your spa.
5. Ensuring Regulatory Compliance
Problem: Keeping a hotel spa safe and compliant is a constant juggling act. A complex web of health and safety regulations govern everything from equipment maintenance to treatment protocols. Staying up-to-date on these ever-changing rules requires significant time and resources. Managing product liability and ensuring guest well-being adds another layer of pressure, making it crucial for spa managers to find solutions that prioritize safety and peace of mind. The intricate nature of these regulations, combined with the responsibility to safeguard guests, makes regulatory compliance a significant hurdle for hotel spa managers.
Solution: Spa management companies ensure your spa adheres to all safety regulations and licensing requirements at local, state, and federal levels. They implement risk management strategies, provide staff training on compliance, and conduct regular inspections to maintain standards. Their expertise in legal and safety standards, equipment inspections, and comprehensive risk management allows spa managers to focus on member experience and business growth, confident that their facility operates within a compliant and secure environment.
While operating a hotel spa can be challenging, these solutions can help spa managers overcome common obstacles to ensure a smooth, efficient, and successful spa operation. If you’re ready redefine your resort spa’s success, reach out to Arch Amenities Group today to get started.
