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Lecture Hotel management and operations (5th Edition): Chapter 1.7 - Michael J. O'Fallon, Denney G. Rutherford

Day spas are designed to provide a healing, beautifying, or pampering experience in a short period. Guests may book individual treatments that last as little as an hour or a package of treatments that take up to a whole day. | Resort Spas: How are they Massaging Hotel Revenues? Melih Madanoglu and Sherie Brezina Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Spa Industry Growth It took until the mid-1980s when some forward thinking resort operators added spas to their properties. Back in the 1980s, having a spa facility in a resort was considered a luxury since a spa was deemed more of an amenity than an independent profit-generating center for resort properties. Today, in the new millennium, the spa experience moves beyond being a luxury commodity. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Spa Industry Growth Cont. Resort operators are now realizing that having a spa is necessary not only to meet guest expectations but also to enable resorts to remain competitive in the leisure market. The number of spa locations grew at an average of 12 percent between 2002 and 2004. The International Spa Association (ISPA) cites the existence of over 1,662 resort/hotel spas as of 2004. In 2003, approximately 27 percent of the 136 million spa visits were made to resort/hotel spas. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Resort Spas from a Marketing Perspective Today's guest seems to be more in touch with the mind/body connection and is aware of the importance of taking time to slow down and “be in the moment.” Resort guests look for balance and harmony in their lives. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Spas as Major Profit-Generating Centers Traditionally, spa operations were perceived as amenities needed to attract guests to a given resort. That is, as long as the spa center achieved a break-even point and did not lose money, the ability of spas to increase the room occupancy was sufficient to justify their existence. Resort spas account for an impressive 41 percent of the total spa industry revenue of $11.2 billion. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Spas as Major Profit-Generating | Resort Spas: How are they Massaging Hotel Revenues? Melih Madanoglu and Sherie Brezina Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Spa Industry Growth It took until the mid-1980s when some forward thinking resort operators added spas to their properties. Back in the 1980s, having a spa facility in a resort was considered a luxury since a spa was deemed more of an amenity than an independent profit-generating center for resort properties. Today, in the new millennium, the spa experience moves beyond being a luxury commodity. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Spa Industry Growth Cont. Resort operators are now realizing that having a spa is necessary not only to meet guest expectations but also to enable resorts to remain competitive in the leisure market. The number of spa locations grew at an average of 12 percent between 2002 and 2004. The International Spa Association (ISPA) cites the existence of over 1,662 resort/hotel spas as of .