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So Spaaah! So Good for RevPAT

Published March 19th, 2007 - 11:29 GMT
Al Bawaba
Al Bawaba

Hotel Show Conference to examine latest spa trends as a ‘high touch’ treat in a ‘high tech’ world drives revenue per available treatment room (RevPAT)

According to research conducted by hospitality consultancy PKF, spas are becoming integral to hotel strategy as increasing numbers of corporate and leisure travellers put spa facilities second only to location when choosing a hotel. Hoteliers are now calculating the return on such facilities with the performance metric, Revenue Per Available Treatment Room (RevPAT). To highlight the growing importance of spas a dedicated session will figure prominently during the Hotel Show’s Seven Star Conference which takes place at the Dubai International Exhibition Centre (DIEC) on 3-4 June.
To measure the ROI in relation to other hotel cost centres, hotel operators, already familiar with RevPAR, revenue per available room, are using a similar performance measurement called RevPAT, revenue per available treatment room. RevPAT is calculated by dividing the total revenue generated by a spa by the number of treatment rooms available in the spa and is providing detailed cost accounting to the hotel property, helping to justify their existence with bottom line income.
Speaking at the Seven Star Hotel Conference, Jeff Matthews of Mandara Spa, commented, “Discerning guests are demanding a cultural influence in the spa experience and there is strong demand for indigenous and authentic treatments. Another area with great potential is the massive yet untapped male guest market. Although hotels continue to build spas primarily for a female audience, the trend with some forward-thinking hoteliers is to design unisex spas.”
Two years ago The International SPA Association (iSPA) claimed that there were over 1,662 resort or hotel spa properties and some industry commentators put the estimated annual growth at 11 per cent. With increased disposable incomes, and less available time, spa treatments are better accommodated in a tight schedule than a leisurely round of golf. Although still in its infancy this clearly indicates the immense potential and it is also interesting to note that an hour-long spa treatment will generate more revenue than a typical round of golf.
One of the many reasons cited for the popularity of spas is the very personal and pampered service guests receive. This ‘high touch’ experience is just what weary travellers crave, especially in such a ‘high tech’ world, where human interaction is becoming less frequent with the acceleration of technology. Whether it’s leisure guests, looking for the ultimate holistic treatment with family and friends in a luxury resort or corporate travellers with their hectic schedules and city-life, high stress levels, the desire for ‘high touch’ spa treatments is becoming more acute.
Maggie Moore, Exhibition Director, The Hotel Show, said, “In a relatively short space of time, technology has transformed the way we live beyond recognition. In a similar fashion, spas will accommodate the relentless trend towards healthier lifestyles and wellbeing and as such spas will become a part of our everyday lives.”