Revenue-Boosting Strategies for Hotel Spas

Interior of hotel and spa reception 3D illustration
Dmitry Berg -

The road less traveled may be forged alone, while building a bridge capable of supporting a community takes many capable minds. If you want to create a spa business that will stand the test of time and weather the challenges that will inevitably arise, usually without warning, there is power in building a foundation with specialists who understand the bedrock of the spa industry and its distinct place within the business of travel and tourism.

The hotel sector has broadly focused on building brand loyalty as it relates to hotel guests’ overall spending engagement. At times the hotel spa, although expensive to build and operate, has not always been fully capitalized on.

According to David Stoup, a 35-year veteran of the spa industry, there is growth opportunity in looking to locals to grow a hotel’s spa revenue. Stoup is the founder, chairman and CEO of Trilogy Spa Holdings, a spa operations business focusing on the hospitality and residential industries.

“For years, the primary business of large hotels was focused on groups,” says Stoup. “The challenge was that those guests were busy going to seminars, dinners and cocktail parties. And they really didn’t have much time for the spa. We have our greatest opportunity with the individual leisure traveler and, to a great extent, locals.”

Due to the increased need for comprehensive wellness initiatives for all, Stoup believes consumer demand has never been higher. The question is: What can be done differently to attract new clientele, increase retention and improve average ticket sales? By identifying the hotel spa’s process gaps and outlining a targeted plan to address those gaps, sales and profits should improve.

There is limitless potential when working with a variety of experts as it relates to hotel spas, ranging from small-scale, short-term projects to larger projects with longer timetables. If a company doesn’t know where to begin, a good place to start is with an outside audit. There are many types of consultants and advisor-based or operation-based companies to choose from. Each will offer a variety of strategies to grow your luxury hotel’s spa.

When considering what benefits exist when bringing outside experts in to grow your company’s spa revenue, it helps to consider the following factors.

Broadening Perspective: A Fresh Set of Eyes

Established hotels have undoubtedly built an excellent reputation from years of strategies that have elevated their status as a whole. Yet, every business has its blind spots. Utilizing outside advisors, consultants and operational experts often have the ability and perspective to see what others in the organization might not have noticed.

Spa retail partners offer beneficial sales training programs that are necessary for a spa company’s success, but there are limitations to working solely with them. When a spa company accesses both their current brand partnerships as well as non-product-specific trainers and business experts, they can increase growth potential with a well-rounded, comprehensive and objective approach.

Evolve and Expand Your Menu Offerings

Outside advisors, consultants and operational experts can help you identify what trends currently exist globally in individual markets. They will also know how to perform the necessary research to understand the difference between passing fads and the services and products that will have longer term potential for substantial profits.

Equally important is making an accurate assessment regarding budgets for resources to maximize revenue growth and ideally increase profit margins.

Service creation, development and implementation are all equally important. The last thing any company wants is for a professional spa service to be performed prior to protocols being perfected and the service team being adequately trained.

Understanding Multiple Aspects of Spa Business

Similar to how the luxury hotel industry employs a broad range of leaders that excel in their given category of the hospitality and travel industry, expert spa consultants and spa operational companies understand the nuances of the multi-billion-dollar spa industry. Their expertise can be instrumental in developing healthy financial growth plans and fostering longevity.

Working with an individual or team outside of the organization should be done with sensitivity to the existing team; therefore, it makes sense to choose an expert or company that has experience performing roles in a spa, ranging from customer service, service providing and management.

Partnering with a consultant that has a broad range of experience will allow a spa company to grow with fewer growing pains. When this partner understands a variety of positions within an organization, they have an ability to communicate effectively between departments and create procedures that include a level of synergy between departments.

Now Is the Time to Invest

As the hotel industry returns to pre-pandemic growth and demand for spa services grows, now is a great time for hotels to start exploring strategic investments in their spas with the goal of increasing revenue.

As with most endeavors, the successful execution of any new strategy should be well thought out. An outside perspective will help identify and address the spa's process gaps and assist in the development of a multifaceted campaign to market to a variety of potential customers ranging from business to leisure travelers, locals and beyond.

When considering what individual or company to work with, it is important to look for a person or team with a proven track record of generating growth in the spa industry. Additionally, this partner should be capable of executing a plan that considers multiple departments within the organization.

The benefits of established hotels utilizing specialized spa advisors, consultants and operational companies to grow their spa revenue are endless. Most spas have untapped potential and tremendous opportunities for growth. The right partner will help tap into this potential and capitalize on these growth opportunities.

Leah Simon-Clarke is a licensed esthetician and consultant with 24 years of experience in the industry. Her success has been driven by honing her skills in customer service, service innovation, marketing and public relations. Find Simon- Clarke through Instagram @LeahSimonClarke or Linkedin by name.

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