Does your Spa Profitability Need a Massage?
Exploring the well-being of the wellness operation
By S. Lakshmi Narasimhan Founder, Ignite Insight LLC | November 18, 2012
Wellness is the popular panacea for the modern day busy, stressed out business executive. It literally massages the individual back to a state of detox. However, how well does wellness as a project and investment measure up?
Before we consider profitability and justify return on investment on a spa project in a hotel, let us briefly look at why a spa as an investment is to be considered.
A spa in a hotel is an alternate source of revenue not just from its own operation but also as a facility, which generates major rooms and convention business. This is not the same model as a standalone spa that has to rely entirely on revenue generated through its operation. This by itself makes a spa within a hotel unique.
As a facility that generates additional revenues for the rooms and catering departments, the spa contributes to the bottom line of the hotel or resort where it is located. Moreover, having a spa in the premises is considered a good positional strategy. Guests patronizing the hotel or resort would rather have a spa within the premises than go looking for a standalone facility. In most instances, price is not a factor determining this decision but convenience and proximity are.
Factors Affecting Spa Performance