Someday alongside the lifetime of any hospitality mission improvement or property refurbishment the potential position and scope of some type of well being, wellness or spa element is mentioned.
When to ask these questions and when to resolve? How to decide on? And, consequently, how you can function: as a satellite tv for pc or as an built-in half? Acquainted questions and decision-making factors? Very probably so.
Generally builders search for an off-the-shelf resolution, e.g. let’s name it a spa unit. A unit that may be moved round on the drafting board and finally find it the place it causes the minimal disruption to hospitality operations. Alternatively, on the opposite finish of the spectrum the hospitality supply could possibly be determined and designed across the well being/wellness/spa provision in its all entirety.
It’s all nice however how you can navigate in these considerably murky waters? HTWWLife’s navigation matrix highlights the important thing cornerstones. You might determine your property based on one of many 4 main approaches. Both of those approaches might carry success. The query is what the definition of success was: quick money, media protection, variety of new followers on TikTok, or asset worth enhance? Be sure you know the way you’ll measure efficiency and success earlier than you choose both of the approaches.
The Choice Parameters
There are two concerns anybody ought to contemplate:
- Time span of anticipated worth contribution, and
- The in/tangible nature of the elements.
Quick-Time period Worth Contribution
There may be at all times a brand new pattern to observe or a brand new tools to purchase. Business sources, influencers advocate this ‘pattern’ and properties in addition to many shoppers fall for that. This new pattern will be an tools, e.g. for skincare, a element, e.g. crushed pearl in exfoliation or an entire ritual, e.g. singing bowls, or a brand new model or product line. These trendy providers and merchandise might carry the meant outcomes shortly. Then, they shortly can get ‘drained’. If the lodge’s technique was to experience the style wave no matter that may be both of those decisions can imply success.
As in trend, nonetheless, the success will be brief lived. An much more ‘fashionable’ merchandise might require adjustments in operations, e.g. new format and design, new tools, changing the provider with new product traces and employees coaching, or changing the white label operator, and so forth. None of those adjustments come low-cost. Moreover, the brand new ‘pattern’ might include new set of visitors with totally different traits from what describe the present market. The operator can name itself very fortunate if the outdated and the brand new segments can stay parallel harmoniously.
Lengthy-Time period Worth Contribution
Until in a retreat situation the place the required infrastructure funding is comparatively average, inns make investments important CAPEX to the spa, wellness, leisure provision. House owners and operators sometimes count on that no matter they invested in would offer optimistic contribution to the revenues, to the model and to the earnings for a very good whereas. This expectation is relatively regular. Lodge property don’t are likely to yield as quick as many different types of investments and traders perceive the character of the enterprise. Most inns contemplate wellness/spa/leisure elements as both an amenity, a nice-to-have, or a set rental income supply. This asset must contribute to the general efficiency however room income and banqueting want to hold the burden.
In specialised properties, nonetheless, the wellness/spa/healthcare/leisure worth proposition, e.g. longevity medication, or holistic wellness is the torchbearer. In these instances, the entire property is designed and operated facilitating the specialised worth proposition. TrevPAR is extra of a related measure of efficiency than RevPAR. The long-term expectation is means stronger for the reason that preliminary CAPEX, and doubtlessly the OPEX figures are additionally greater than in different situations. Consequently, the yielding efficiency must be beneficial on an extended(er) interval as properly.
Tangible Assets
Many wellness, health and spa services are based on specific equipment, infrastructure or products from skincare technology, though sophisticated massage beds to immersive pods and massage robots. These are tangible assets with the following important characteristics:
- Inflexible or fixed, i.e. it is rather difficult to find alternative use for them, if at all. How can you repurpose a spa space located in the basement? Operators may be exclusively tied town to the manufacturer and that can mean limitations should the market show unexpected changes. Can also represent high CAPEX and in many cases high OPEX as well.
- Separatable, i.e. equipment, furniture could potentially be moved to another location since these tangible assets are not location specific. Guests are not likely to associate the location or the brand with such products. Still separability represents certain degree of flexibility should the need arise of relocation or sell.
- Lasting and durable, i.e. assets will be available and last for some time and may need major maintenance only at regular intervals. They can survive many users and serve the business well.
- Tendency to be uniform, i.e. except the high-end or upper scale spectrum where tangible wellness components tend to be custom-made, most tangible assets are mass-produced. These represent limited unique value proposition and may not be brand or story specific. Experienced wellness consumers soon recognize the generic nature and look for more meaningful propositions.
Tangible components are often seen as key to success. Developers spend a lot of money on the physical components, then they expect these spaces and equipment to perform. In the wellness/health world, however, such assets may underperform since not enough attention was paid to the complementing intangible components.
Intangible Assets
Intangible assets such as specific wellness and health knowledge and skills, signature guest journeys, creative combination of otherwise independent components, events, celebrations or rituals, all come with some rather specific characteristics as well:
- Flexible, i.e. most intangible approaches only use and not exclusively based on tangible components. The intangible components, e.g. technique, scent, colour, journey length, etc., can be changed, modified and adapted relatively easily. Being able to quickly response to market changes sure offers competitive advantage.
- Heterogenic, since it is flexible even the hyper personalisation of the services is possible. At the same time, however, without skilled and flexible staff heterogeneity remains to be only another missed opportunity.
- Perishable, i.e. there is no shelf-time. It is not possible to stock wellness rituals, whereas it is only matter of budget and storage space how much of certain skincare products are stored. The perishable nature makes intangible wellness services or experiences similar to how guests perceive festivals and major events, i.e. they need to take the opportunity otherwise they may miss it altogether. Pools are always around, whereas a special a session with the jogging concierge or tonight’s bath butler is very perishable.
- Inseparable, i.e. it is not possible to separate the consumption from the production. A 45-min massage is performed in-situ and requires a therapist. If the therapist was fully booked, then the guest missed her/his chances for the day. Unless the wellness centre invested in a massage robot. The healing power of the human touch cannot be overestimated.
The two variables define the map of health and wellness in hospitality with four major quadrants.
Pearl Shells
The design and the architecture are amazing, the location is breathtaking. Everybody has fantastic time at the resort. More often than one thinks, the attention and the budget ends with the architectural and interior design. The soft intangible elements are often overlooked or forgotten. The stunning property feels like a beautiful shell without the pearl in it. The property is a success but for short period of time. Then another stunning location receives all the attention (and business). Wellness is not (only) about appearance. It has several pillars (upto 8). Success is only short lived if only one of those were taken into consideration. Without a wellness-DNA any beautiful hotel is only an empty shell in the wellness market.
Markers
Health and wellness are not static. There is a constant development in the field with new approaches, techniques, products and rituals. It is perfectly OK to plan for short term only. A certain type of treatment or ingredient, a fusion approach merging Eastern and Western techniques, a visiting therapist, a new meditation ritual may have a relatively short shelf-life. Nothing is wrong about that: as long as such short life-span was accepted from day one. Intangible approaches can leave their marks on the business or on the brand even during a short period of time. Developers need to make informed decisions should they opt for a marker style wellness offer. Such marks can represent the wellness DNA of the property or the brand accordingly.
Good Crafts
Well-crafted tangible assets can bring long-term success without doubt. A well-designed wet circuit combining tangible assets with intangible approaches can yield for many years. The saunas or the pools may be used for different rituals, celebrations, the treatment spaces only if these were designed with flexibility and adaptability in mind, the immersive panels can support several different atmospheres, etc. A well-crafted wellness space, however, needs more than just an architect, an interior designer and the spa manager. The conceptualisation necessitates the involvement of a wellness experience designer as well. Good craftsmanship is always appreciated even if this was not a pioneering approach.
Home Runners
The ultimate success tends to be based on intangible approaches. The most successful health and wellness hospitality providers base their portfolio on intangible components supported by certain tangible assets. Guest journeys, signature treatments and therapies, branded methods are all indications of how critical the tangible components are. The intangible nature makes these properties flexible in their core propositions. The core concepts can evolve since these are not locked into a defined space but focus on creativity and knowledge.
It may seem that this matrix is relevant to wellness only. The contrary. The four development quadrantsw are relevant to almost any health and/or wellbeing development including not only spa and recreation, but also the healthcare and medical arenas as well. Hospitals and clinics can also go down the tangible/short term route by purchasing the latest, rather pricey equipment. Still, the ROI on such investment may be underwhelming since they did not invest into the specialists who actually can make the most of the new ‘toy’.
There are many rather successful hotels and resorts, and lately new fusion properties merging healthcare and hospitality. Locating these on this map confirms the defining role of intangible assets: these are the keys to their highly acclaimed market position and performance. In very special cases the combination of tangible and intangible assets, e.g. building on natural healing assets and the healthcare/wellness knowledge of the specially skilled professionals specialised in the use of these natural assets ensures market success.
Either of the four quadrants can ensure success to the property or brand, being either an urban hotel or a resort. Build a pearl shell or being a master in baseball: either can go. The only trick is to be make informed decisions and plan accordingly.
Reprinted from the Hotel Business Review with permission from www.HotelExecutive.com.