Home / ANALYSIS / Back of House / So spa, so good!

As citizens of a fast paced world, it’s becoming increasingly important to slow down and take the time to soothe our overburdened senses, which is probably why wellness has rapidly become a popular offering in
the hospitality market. From this month onwards, Hotelier India brings you a dedicated section on the business of holistic healing.

Hotels have traditionally been focused on offering their guests a warm welcome, a comfortable stay and extras such as F&B outlets, bars, health clubs and swimming pools to keep them busy during their stay.

It is only in the last decade or so that spas have become an additional attraction for discerning customers who look for relaxation and rejuvenation during their hotel stay.

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For hoteliers, it made sense to offer their clients a venue where they could fulfil their relaxation needs without stepping out of the premises.

Whether it is for tourists on holiday or business travellers looking to relax after their appointments, in-hotel spas have gradually become a strong focal point in the hotel industry.

By and by, the demand for spas has grown to such an extent that we now have a mushrooming of spa offerings; from resort spas, day spas, salon spas, destination spas, club spas, medical spas, cruise ship spas, to mineral spring spas and airport spas.

With such cut throat competition in the offing, hotel spas have to go that extra mile to ensure that they can make the most of their captive audience while in some cases, also attracting non-hotel guests.

Potential for profit
Setting up spas can be an expensive proposition and much care has to be taken to pay attention to details.

Which prompts the question: are spas a profitable venture for hotels? Do they manage to garner any substantial revenue from these efforts? Spa consultant Ashwajeet Garg of Ziva Spa says, “Usually, 20-25% conversion of hotel guests into spa users is supposed to be a good number.

Considering that room revenues are at least two to three times than that of a spa treatment, I’d say anything around 10% could be good for a business hotel. However, that depends on the location and if the hotel caters to the leisure market/clientele, this could go up to 40-50%.”

Unlike spa resorts where the spa is the one and only attraction and guarantees high footfalls and higher revenues, hotel spas don’t usually generate as much business in comparison and are heavily dependent on the season as well.

For example, a spa resort like the Zuri Kumarakom Kerala, Resort and Spa contributes approximately 25-30 % of the total revenue during peak season but in low season during which the guests are mostly holiday makers, the spa contribution reduces to 15%. In The Zuri Whitefield, Bengaluru, on the other hand, the spa contributes to about a mere 5%.