Study spotlights critical success factors for destination spas
The secrets to success for destination spas have been outlined by hospitality consulting firm Horwath HTL in a report which provides an overview of the growing market.
Horwath HTL Health and Wellness consulted experts specialising in the design, operations and management of health and wellness-based projects.
Unlike traditional resorts, destination spas possess greater internal appeal – including services, specialists, F&B and activities – which makes them more flexible than resorts which, for example, plan to feature a golf course.
While the site itself is less important to a destination spa – aside from concerns about air quality, water quality and potential future developments in the area – the report illustrates connectivity is a critical factor for consumers. The 2014 trends report released by Spafinder Wellness 365 pointed out busy travellers are looking to stay closer to home for shorter, yet more frequent vacations.
The report also found that shortcuts cannot be made in the design of the spa, therefore considerations about the flow of guests from one space to the next is just as important as employing triple bottom line strategies and environmentally conscious building practices wherever possible.
To prevent the dilution of efficacy and reputation of the unique programming of any destination spa, the facility’s operations must focus on selling programmes and not guest-room nights. “The profit potential lies in the wellness programmes,” the report continues.
Staff from every department in the wellness facility – including the F&B and housekeeping employees – must understand the retreat’s full offering, requiring a significant amount of cross-training. “Limited employee turnover leads to increased continuity of service and improved guest service overall, which plays a major role in increasing repeating visitation rates, as spa-goers are known to be dedicated repeat visitors to properties they enjoy and trust,” adds the report.
Maintaining a user-friendly online presence is important, according to the study, which states, “while approximately 26 per cent of bookings at traditional hotels and resorts occur via official websites [TravelClick, 2012], this number is believed to be closer to 40 per cent at wellness retreats.”
The Horwath study predicts future challenges for the destination spa market to include “talent scarcity” – the difficulty in retaining skilled team members capable of delivering internationally benchmarked service at a luxury standard.
Families are expected to seek wellness together and wellness travellers will be looking to maximise results within a limited timeframe.
The report stresses that an ageing population with increasing health problems is one of the reasons the destination wellness centre sector is experiencing such rapid growth.
Target-focused wellness packages that are tailored to individual guests’ needs and inclusive of accommodation – in a communal environment – are features which lead to higher guest repeat visitation rates, compared to traditional hotels and resorts, according to the report.
“It is not uncommon for global destination spas to realise a guest repeat visitation rate ranging between 40-50 per cent, as guests will regularly reserve their next year’s stay upon checkout,” according to the study.
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