The global spa and wellness sector is thriving despite significant economic, financial, and geopolitical turmoil in recent years. The Global Spa & Wellness Economy Monitor has released data that shows the sector is stronger than ever, with a 7.7% annual growth rate.
The hotel spa is still a cost center in today’s business world. It can also be a profit center depending on how it’s managed. It doesn’t matter if you play one or the other role, but it is important to know which one to pursue and with whom, and in what context.
A little history of spas
Hotels spas were only found in the most exclusive resorts 20 years ago. They are now found in all types of hotels. Hotels assumed that adding a spa would attract guests when the spa boom started. The spa’s exotic appeal was lost as more hotels added spas to their offerings.
Hotels made their spas more expensive and larger out of desperation and competitiveness. Turning a profit was becoming more difficult due to the high cost involved. Many hotel owners struggle to get a decent ROI even today.
Moving forward
Despite the problems, spas are still an important part of any establishment. To run a successful spa malta, you must learn from others’ mistakes and use them to develop your spa. It is almost impossible for hotel managers to make the right decisions because of the complexity of the spa business.
Rehire a qualified spa manager
As a qualified spa manager, you can be a consultant, advisor, and designer. Once the spa is established, he/she can oversee its daily operations. This option allows a hotel to hire the right person and has a dedicated staff member who is fully focused on the spa’s operation. The problem is that the wrong person may be onboard and not realize it until the spa has already developed.
A spa management company can be your partner
Management companies that manage spas are very similar to those managing hotels. One of two business models is common: a revenue share or management contract model. A management contract model gives the company a portion of the gross operating revenue and gross operating profit. The revenue share model allows the company to receive a percentage of the top-line revenue.
A contract with a product house
Another option is to contract with a product house. This is a cosmetic or skincare brand that will manage the spa under its own name. This option, like a spa management firm, relieves the hotel from the responsibility of running the spa’s day-to-day operations. However, it prevents it from being able to make important decisions within the spa. A lot of product houses have a minimum order requirement for their clients. This means that if products aren’t sold quickly, they could lose money.
Hire a spa consultant
A spa consultant is an individual who visits a hotel to assist its management in setting up or revitalizing its spa. The hotel can regain control once the spa is operational. If there are any questions or concerns, the consultant can be reached at any time.
A spa consultant can offer many benefits, such as flexibility and control over the decision-making process. The spa consultant doesn’t need to follow strict guidelines regarding product lines or treatment menus. They also don’t require that the hotel purchase a certain amount of products each year. It can be difficult to find the right spa consultant. The spa is then managed by the hotel on a daily basis after the consultant has left.
