Study Boosts Spa Revenue Potential

9th January 2008 (Last Updated January 9th, 2008 10:40)

Spas represent an excellent revenue source for hotels, according to a recent research study. PKF Hospitality Research's inaugural study of the US hotel spa industry claims the average hotel spa department in 2006 achieved a profit margin of 31.1 percent, compared to a 40.8 percent profi

Spas represent an excellent revenue source for hotels, according to a recent research study.

PKF Hospitality Research’s inaugural study of the US hotel spa industry claims the average hotel spa department in 2006 achieved a profit margin of 31.1 percent, compared to a 40.8 percent profit margin ratio for all other operated departments combined.

A 9.7 percent increase in hotel spa revenues in the same year resulted in an 11.3 percent gain in spa department profits.

Driving the increase in revenues was a 9.6 percent increase in the sale of popular spa services such as massages and facials.

Revenue was also boosted by local membership fees, fitness lessons and personal training.

PKF senior vice president Bruce Baltin says spas represent excellent growth opportunities for hotels.

“With a stronger focus on staffing and a better understanding of the local community, both urban and resort spas have an incredible opportunity to increase their profit margins,” he says.

By Felicity Crump