Sooner or later, COVID-19 will be a thing of the past. However, as the crisis will pass, many things will have changed. New ways of working, new consumption patterns, a new way of interacting with people, and most certainly, cleanliness standards as new ways of measuring the attractiveness of hotels will become the norm.
One truth…there is very little we can confidently predict at this point. Yet in my career, I have seen and led teams through some very difficult periods and the one thing I can confidently predict is that we will endure and thrive and the data backs that prediction up. In 2018 the International Spa Association reported that total spa revenues in the US grew 48.7% since the end of the Great Recession to $18.3 billion.
Starting as a peculiarity in the 1970s in the Netherlands, the use of cannabis for medicinal or recreational purposes has gained immense momentum across the globe in recent times. Thus far, 4 countries and 11 U.S. states have officially legalised cannabis for recreational use and more than 40 countries and some 30 U.S. states for medical use. Furthermore, the recent legalisation of cannabis in Canada (in 2018) and in the U.S. State of Colorado (in 2014) for recreational purposes has been widely publicised and commented upon.
The wellness tourism is now a $639 billion industry. This begins to point us in the direction of traveler & guest desires, but the word wellness can lead to restrictive thinking. What comes to mind when I say wellness? Did you get images of yoga, smoothies, or maybe essential oils floating into your head?
In 2007, CBRE introduced Trends® in the Hotel Spa Industry in response to the spa industry's rapid expansion within hotels and resorts and its relevance to hotels' bottom lines. For the second time in the history of the publication, spa revenue increased at a higher rate than rooms revenue and total operating revenue. During 2018, the 159 hotels in our survey sample of achieved a 3.7 percent growth in RevPAR, which led to a 3.8 percent rise in total operating revenue. Concurrently, spa department revenue increased by 4.8 percent. With RevPAR forecast to increase less than 1.5 percent through 2021, the Spa Department represents an opportunity for hotel owners. Wellness is a growing desire in the minds of guests, and hotels can capitalize on this trend.
The following research and insights are compiled by Jeremy McCarthy, Group Director of Spa & Wellness at Mandarin Oriental Hotel Group. The brand leads the luxury hospitality sector in integrating wellness into the guest experience, continuously creating offerings that nurture the mind, body and soul.
Social media has changed the game in resort marketing, but it remains a confusing and misunderstood medium. Words like Followers and Engagement get thrown around, but how does one go about making real connections with their target demographic?
Driven by the interests of an increasingly older and unhealthy population, healthcare has been at the center of political debates in the United States for over a decade. The current conventional healthcare model is broadly recognized as failing and is compelling people to take on responsibility for their wellbeing through alternative solutions.
Value adds always become expectations. Such is the course for hospitality and if you aren't constantly evolving your brand then it will become stale. And in an overstuffed hotel marketplace, you need bold new directions to differentiate your product and drive rate.
"Wellness" sounds trendy, but the concept has always been inherent to the hospitality industry its beginning is arguably rooted in historic spa locations where mineral-rich waters were used for medicinal baths. Belief in the restorative powers of such waters actually dates to prehistoric times. This curious fact underscores another fact — interest in the concept of wellness is not a modern fad. And, it's a bankable product and service offering, as exemplified by recent statistics:
Wellness is the word in today's hospitality as experts throw around immense numbers - the market size is said to be over $4 trillion! - and so in 2019 there is a stampede into wellness that is unlike anything we have seen before.
With the growth and development of the spa industry, the quality demands on customer service have risen as well. In order to satisfy those requirements and boost your customers' experience, you need to aim at establishing a premium resort spa service.
While wellness has long been a primary driver for resorts and luxury properties, it is now reaching critical mass for all other segments of hospitality. The trends supporting this progression come from the generally healthier dispositions of customers who now actively seeking healthier choices in all aspects of their lives, not just when they are home and going about their daily routines.
Face a stark reality: many resort and hotel spas disappoint management and owners alike when it comes to guest usage and the resulting profits. Word of advice: it will only get worse for those pursuing a rigid spa menu of services and activities. Spa just isn't a universally powerful guest magnet anymore, in part because of the sheer number of spas, in part because a "been there, done that" indifference has spread across many potential guests when they think about a spa vacation.
Airbnb came on the scene in 2008, amidst corporate scandal, economic downturn and instability. Initially people were skeptical, but Airbnb has gained remarkable momentum building its platform with transparency and trust, at a time people were greatly seeking both. In the early years, Airbnb's inclusive and diverse model provided low-cost travel options with uncommon flexibility, which became an enticing alternative to the traditional big-name hotel booking systems.
When the first wellness-inspired 'EVEN Hotel' by IHG opened in 2014 I remember thinking, "It's not for me but there must be a bunch of people that are looking for something like this." In retrospect, I guess my assessment wasn't too far off as four years later they have only nine hotels open and 14 in the pipeline. These growth numbers seem especially weak when compared to 'avid', IHG's answer to Millennial-focused brands Tru (Hilton) and Moxy (Marriott). The 'avid' brand was announced in 2017, and now has one hotel open and 126 hotels in the pipeline.
Are you old enough to recall the excitement over the debut of the first Blackberry and its speedy texting system at the dawn of the new millennium? It was quite the revolutionary and addictive feature, so much so that today we may be taking a short messaging service (SMS) like this for granted as our minds are constantly distracted by one of many quotidian ways that we use on our mobile phones.
This article reviews important keynotes to protect wellness and hospitality investments after a decade of significant market and industry change. The recent U.S. tax cuts in 2018, have given many households and companies, a sense of relief from taxation with an improved economic outlook and sense of stability. This has ignited a swell in travel, business, and consumer spending. This article reveals how recalibrating investment outlines, management and strategic planning can increase the life-cycle and sustainability of the business, and how to prepare for the increasing speed of change in the years to come.
Spa and Wellness program structures fall into a wide range of performance categories and operating models. For hotels, there are multiple applications that include combinations of relaxation, well-being and treatment-based sessions. While some of the newest and popular trends include features centered on health and lifestyle; there are often wide gaps between drive, delivery, and financial return. Having an acute understanding of how spa and wellness features intersect with perceived value and profitability percentages, conveys important impacts on asset performance, momentum and risk. Spa and Wellness structures that deliver long-term value and execute well are shaped commonly by three things successful integration, economic performance and a core company mission. It's common to see activities like yoga, mindfulness meditation and forest bathing in the wellness fold. However, understanding how these activities contribute to the total revenue ratios of the property is key to increasing RevPAR and fostering a preeminent and thorough return on investment. It's also pertinent to understand the demographics, customer profile and central selling points of the hotel or resort.
Spa directors are in a funk. Many see declining bookings and just about all see diminished buzz but face reality: the pendulum has swung and the spa that had been so in maybe 10 years ago now is plummeting towards obsolescence.