Findings from the Ernst & Young’s Spa Benchmark Survey Report has revealed that revenue for hotel spas in Dubai have risen by 45.5% for the first quarter of 2010.
The survey, which tracks and compiles performance of Dubai’s 5-star hotel spas on a monthly and year-to-date basis, has noted the rapidly increasing revenue in this area.
The increase in revenue has been correlated with the fact that staff are becoming more business savvy, with better scheduling and higher efficiency. Also noted is the fact that more hotel guests are utilising spa facilities during their stay, ranging from 60-62% of guests compared to the 48-58% range witnessed during 2009.
Paul Arnold, Principal, Real Estate, Hospitality & Leisure, Services Ernst & Young MENA noted: “Dubai hotel spa operators are beginning to incorporate formal reporting techniques and use standardized metrics towards evaluating their spa performance. Increased attention to operational diagnostics and business improvement strategies are important factors underlying the positive trends in spa performance.”
Nikita Sarkar, Spa Industry Specialist at Ernst & Young MENA adds: “Hotel guests’ propensity to spend on spa services appears to be returning. Dubai hotel spa operators may now have the opportunity to create more effective marketing and promotion programs and move away from price-based discounting of last year.”
“Survey results highlight the importance of effectively integrating spa and fitness offerings at the hotel. In addition, other charges including day usage fees and rental fees can be expanded via membership and loyalty programs that induce repeat visitation. Through these, spas have the potential to maximize revenue generation from typically non-revenue producing areas of the spa (i.e. steam, sauna, lounges, etc.) without necessitating customer spend on high price point spa treatments,” concluded Sarkar.