Spas and wellbeing facilities are growing in popularity, but ensuring their ROI is another matter. At the ITB Convention this week, Lynn Curry, CMC, President & Co-Owner, RLA USA LLC, will be covering some of the key factors that need to be taken into account. We asked her to tell us a little more.
DESIGN FOR WELLBEING AND FOR THE ROI IN YOUR HOSPITALITY DEVELOPMENT Category: ITB Experts Forum Wellness
Date: March 9, 2017 Time: 1:15 p.m. – 1:55 p.m. Location: H all 7.3a, Auditorium Berlin 1
Any spa or wellbeing facility must consider its location, market mix and competition. In many cases, especially at mature markets, the initial concept and the value transaction to guests may precede any other consideration. Building the spa, the right size for the location, will require a proper feasibility study that identifies guest use calculations, volume, average check, and components for competitive advantage. Proper study will also provide the information on whether to have a spa in the first place, or to replace with other wellbeing opportunities on the property for TrevPar, not just RevPar.
Do you have any case examples?
A spa facility in an urban hotel has a different type of guest use than a wellbeing facility in a resort. Urban hotels may attract a wellbeing guest who is on a business trip with limited time to rejuvenate, thus design is with less space in both availability and need. A spa in a resort, especially if the resort is within an area that could attract the local spa goer, may draw guests who stay for a day, which results in TrevPar for the property, even without guest room revenue, because of the additional F&B and retail revenues. These facilities also entice day users to bring friends for a social programming, if additional relaxation space exists. For example, we are currently developing The Four Seasons Napa Valley, with a spa garden and thermal pool, and we designed Island Spa Catalina, open since 2014) with an oversized relaxation deck overlooking Avalon Harbor and the Pacific. Both with high end F&B, retail, and gift certificate sales opportunities