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Healthy Hotel Guests Drive Spa Revenues and Profits

October 23, 2013 Statistics & Trends No Comments Email Email

While U.S. hotel guests are curbing their appetite for hotel restaurants and room service, they appear to be expressing a desire for pampering and wellness.

For the second consecutive year, hotel spa revenues and profits have increased at a pace greater than other non-rooms department sources of hotel revenue. According to the recently released 2013 edition of PKF Consulting USA, LLC’s (PKFC) Trends® in the Hotel Spa Industry report, spa department revenue increased by 5.0 percent at the properties in the survey sample. For reference purposes, this compares favorably to the 2.3 percent increase in food and beverage revenue, the second largest source of revenue for most hotel.

“Due to its historical stigma as a luxurious amenity, spa revenue initially lagged behind the growth of other revenue sources during the early stages of the recovery,” said Andrea Foster, vice president and national director of spa and wellness consulting for PKFC. “However, the 2012 increase in spa revenue is a trend we anticipated would occur. There has been a notable focus shift to wellness, specifically taking better care of ourselves for improved health and quality of life, of which spas are an important part.”

Spas located in both urban hotels and resort properties enjoyed increases in revenue during 2012, though each achieved their growth in different ways. Urban hotels not only were able to induce more guests to avail themselves of spa services, but they were able to increase prices, as well. The net result was an attractive 7.2 percent gain in

revenue. On the other hand, resort spa revenue grew by just 3.8 percent. “With occupancy levels at resorts rising by 2.4 percent, it can be assumed that resort spa managers struggled with the pricing of their services or were unable to up-sell additional treatments to the newly captured hotel guest demand,” Foster surmised.

Trends® in the Hotel Spa Industry is PKFC’s annual survey of hotel-operated spa departments in the United States. A total of 125 hotels submitted data for 20 of the most important revenue and expense categories within their spa departments. The report allows hotel spa owners and operators to benchmark their revenue and expense ratios on a per-available-room, per-occupied-room, per-square-foot, and per-treatment-room basis. Not included in the survey sample were day spas, destination spas, or leased spa operations.

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