Grow Your Business with Horwath HTL’s Spa Profitability Handbook

Horwath HTL has released a new spa profitability handbook. // Photo courtesy of Horwath HTL Health and Wellness.

The recent rise of the wellness industry means that spas have the potential to increase hotel profits, says Horwath HTL Health and Wellness. In order to capitalize on the wellness market and utilize a spa as a significant source of revenue, hotel operators need to familiarize themselves with the factors have an impact on spa profitability and the effective methods for improving the bottom line, all of which Horwath HTL outlined in its January 2020 Spa Profitability Handbook.

The global hospitality consulting brand found that what typically affects the bottom line boils down to a few factors, including how many of the hotel guests visit, the retail strategy, the spa’s size, how much space is allocated to revenue-generating spaces, type of spa, the prices of treatments, the membership program system, and the location of both the hotel as well as the spa within the hotel.

Among the strategies to increase revenue that the report listed were boosting retail sales, which Horwath HTL found averaged between 5 and 30 percent of spa revenue, attracting more customers though referral programs and active marketing, and improving customer retention by offering a loyalty program, personalizing experiences, and encouraging re-booking. The handbook also listed strategies to control expenses and make spas’ cost structures more efficient, including ways to reduce payroll costs.

To learn more, the full report can be downloaded here.



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