How Spas Can Avoid a Financial Decline
By Judy Singer President & Co-Owner, Health Fitness Dynamics, Inc. | March 24, 2011
While spas can physically, psychologically, socially and emotionally meet the needs of many people, the challenge is to do so in a financially feasible way. Many spas have been their own worst enemy by getting caught up in the "greed" factor (very high treatment prices). This has caused consumers to re-evaluate the genuine "need" and ability for them to visit the spa. Spas are realizing that their "feel good" bubble may burst if they do not respond to the challenging economic realities. The global spa universe is re-evaluating its ability and the necessity to be more affordable; provide more value; and emphasize need verses luxury. Like other industries, savvy spas are diligently looking at ways to address the new realities. They realize that if they don't do a make-over they may go under. Like every other business that wants to survive, spas are seriously examining every facet of their business.
A Consultant's View
As Heath Fitness Dynamics goes into our 26th year, we see that the challenges spas are facing this year may be a bit new, but we really think many of them have been there for a long time and now they are really more visible rather than new. There are numerous dormant issues that the industry has not had to face in "healthy" times. The "wellness" of our industry has deteriorated; some spas have taken precautionary and preventative care and are still doing well. Others have ignored the symptoms and have not set-up a self-care program so they are ill. Unfortunately, some spas are in denial or are paralyzed by the circumstances or have not reacted quickly enough and are, therefore, on their death bed.
Spas can no longer avoid examining every facet of their business and taking responsible, thoughtful and immediate action. Everything needs to go under a microscope in order to have a spa that meets the needs and interests of the guests; allows the spa to recruit and retain staff; and is a tangible asset in terms of its departmental profitability as well as its value to enhance the "core" business of selling hotel rooms and/or real estate.
The following are my "S" ideas on some of the key areas that need to be carefully examined and, as necessary, fine-tuned or re-structured.