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HOTEL BUSINESS REVIEW

JULY FOCUS: Hotel Spa

 

Wellness & Hospitality: Frontiers of Today and Tomorrow

By Mia Kyricos Founder & President , Kyricos & Associates, LLC | July 2017

The Global Wellness Institute (GWI) reported in January of this year that the global wellness economy is now a $3.7 trillion dollar marketplace with wellness tourism representing $563 billion slice of that healthy pie. And given the fact that wellness tourists spend more money than their average counterparts, the economics are quite appealing (see Figure 1.0). The spend varies in considerable degree by purpose of trip; a primary tourist, for example, seeks wellness as the sole purpose of his or her trip whereas a secondary tourist attempts to fit in wellness as part of business or leisure travel. Either way, while wellness trips account for 6.5% of all tourism trips, they represent 15.6% of total tourism expenditures, which certainly indicates a thriving market for wellness-driven hospitality.

Consumer demand for all things well is clearly on the rise and spanning industry, geography and demographics. When it comes to travel, most industry analysts agree that millennials are applying the greatest amount of pressure on the hospitality industry. For example, half of millennials base their buying decisions on the quality of a fitness center (inclusive of options for on or offsite exercise) whereas less than a quarter of Baby Boomers do.  Yet fitness is far from the only thing influencing buying decisions when it comes to how wellness is manifested at today's hotels, and up until just a few short years ago, hoteliers still considered wellness mostly a facility-based value proposition (read: swimming pools, fitness centers and spas). The world has indeed changed.

TripAdvisor, in one of its recent TripBarometer reports, cited that nearly one third of travelers surveyed were willing to spend more on travel because “it's important to their health and wellbeing.”That is, consumers, independent of their preferences for hotel features, amenities and programs, see a relationship between travel and personal wellbeing. And this insight is indeed timely since consumers are not the only ones thinking differently about the relationship between travel and wellness; the industry has caught-on as well.

Figure 1.0: Courtesy of the Global Wellness Institute Global Wellness Economy Monitor, January 2017

Hyatt kicked off 2017 by acquiring health resort brand, Miraval, with a sizeable and timely $212 million dollar investment and millions more being invested to grow the brand globally. Aside from obvious plans to expand the corporation's portfolio of stand-alone spas and destination wellness retreats, Hyatt's CEO, Mark Hoplamazian, has signaled a desire to better serve its corporate clients with more healthful meeting options to complement the ongoing investments that companies are making in the workplace wellness programs that exist within their own offices.

In another interesting move, AccorHotels, upon completion of its merger with Fairmont Raffles Hotels International (FRHI), appointed Fairmont's former “Vice President of Spa & Wellness”, Andrew Gibson, to “Vice President of Wellbeing” for its expanded portfolio of Luxury Brands. The broadened role now includes oversight for both programs and facilities that stand to impact consumer wellbeing, spanning the entire hotel experience beyond just fitness and spa. Other brands like Westin and Six Senses have followed similar suit by focusing on areas like food, sleep, lighting and water quality, among newer brands like EVEN Hotels by IHG, purpose-built for a health-conscious, mid-market traveler who cares about wellness on the road.

All of the above will continue to drive innovation at a brand level, and consumers - already thirsty for options to unplug, detox, cleanse, relax and restore in today's 24/7 world - will drive the rest. Some may question what unconventional hospitality brands like AirBnB or the newly launched Collective Retreats, for example, will do to address consumer wellbeing, and only time will tell. In the meantime, how else may we witness innovation in the growing courtship (dare we say, wild romance) between wellness and hospitality?

The Intersection of Hospitality, Healthcare, Wellness and Design

Over the last several months, we've witnessed the birth of multiple trends in the marketplace, and one of the most exciting is what we're calling the intersection of hospitality, healthcare, wellness and design. And as it turns out, we're not the only ones reading these tea leaves.

Cornell University recently established their Institute for Healthy Futures on campus and hosted their first symposium on the topic (“Hospitality, Health & Design: In Search of a Healthy Future”) just last year. As one of the symposium's speakers, I had the opportunity to pose (two) key questions to the group, summarized below.

First, what if we started treating patients like guests? Just like a hotel, most consumers check into hospitals with the hopes that they will also be checking out. But the overall guest journey, like it or not, is not as service-oriented as it could or should be. What if some forward-thinking hotel brands approached these hospitals not only with the goal of offering extended stay options for family and friends visiting family in need as they do today, but what if they also helped to revolutionize the patient experience into one more traditionally conceived for hotel guests? This really just requires a shift in mentality by hospital administrations (and the development of some strategic partnerships) to trickle down in a truly meaningful way for all parties involved.

Second, how can we revolutionize healthcare into well-care? The rising cost of healthcare is no secret, as is the declining health of a largely stress-out, and obese population. The economic pressures are great, our lifestyle habits are poor, and complementary alternative medicine (CAM) and traditional, western medicine are not yet seasoned, or even willing, to work well together. Ideally, we would spend more time preventing hospital stays for most, thereby increasing the quality of service-driven, curative care for those who need it most. And this is where things stand to get really interesting.

In essence, we see an opportunity to bring together leaders in hospitality, western medicine, CAM, health, wellness and even architects to transform patient experiences to guest experiences. And excitingly enough, this isn't the only place where wellness and hospitality can exist outside traditional hotel environments. Another phenomenon is taking shape within residential communities.

Hospitality & Wellness Lifestyle Real Estate

Demand for health and wellness is no longer just about where we visit or retreat to, but also where we would like to call home. Wellness Lifestyle Real Estate, a rapidly growing $119 billion dollar market place, refers to homes and communities expressly designed for residents' physical, mental, social and environmental health.(6) And wellness communities, a subset of this market that that we've had the good fortune to help identify and define, include communities proactively developed with the holistic health of their residents, environment (both natural and built) and local communities in mind.

Places like Lake Nona in Florida or Serenbe in Georgia are good examples of wellness communities. Serenbe in particular - also considered a prime example of new urbanism just outside of Atlanta - comprises 400 homes with plans for 1200 and multiple villages including Mado, now under constructions, which will house a boutique hotel, a 30,000 square foot spa and wellness center, medicinal gardens and residences among which people of all generations will be invited to happily “age in place” alongside one another.

And it is in places like these where hotel brands, particularly those with wellness as part of their DNA, will soon have an opportunity to prosper. In these cases, it will no longer just be about where their spas or fitness centers exist on a hotel site, or what healthy food options exist on the menu, or if the air or lighting quality within each guest room is sound. Instead, it will be about WHERE these hotels and their wellness-related facilities and programs call home, ideally at the heart of neighborhoods and cities that are purpose built with their offerings in mind (to learn more about this growing real estate market, visit www.globalwellnessinstitute.org/wellness-communities).

Final Thought: The Playground for Wellness & Hospitality Just Got Bigger

Like it or not, wellness is absorbing more and more real estate in the minds of consumers and travelers today. The how and what may vary from generation to generation, but psychographically, the concept of health and wellness is now an omnipresent theme that's manifesting across industry, age, income and geography.

Whether considering the intersection of hospitality and healthcare or the rapidly growing sector of wellness lifestyle real estate, both fields will require partnerships with service-driven brands and management companies in order to thrive. Physical hotels along with their health and wellness-related programs and facilities are also key to these newer value propositions.

The question is: how will hotels continue to reinvent themselves to meet these growing expectations for health and wellness both at home and on the road? And will the greater hospitality industry begin to think more broadly about its important role within it? I believe the opportunity for some of the world's most respected brands in the industry (and perhaps some new ones on the horizon) has indeed expanded. In fact, the playground for wellness and hospitality just got bigger.


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Enari Bryant Winning Clients by Simplifying The Hotel Experience: How Convenience Drives Success
  • By Enari Bryant, Sales Manager, Brick Hospitality

    • An event planner from a local company—let’s call it Golden Group—reaches out to your hotel’s sales team in urgent need of a room block and conference space for a quarterly strategy meeting, just a few days away. Normally, they hold these meetings at their office, where an on-site café takes care of breakfast and lunch, and everything runs like clockwork. But unexpected building maintenance has thrown a wrench into their routine. The urgency in the planner’s voice is more than logistical—it’s personal. Their reputation is on the line. The conference team expects the same seamless experience they’re used to, and...

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Robert O'Halloran Complete the Circle: from Mentee to Mentor
  • By Robert O'Halloran, Professor & Director, Hospitality Management, East Carolina University

    • Have you had a mentor in your career? Perhaps it depends on what you call a mentor, someone you like or someone older with more experience that can give you feedback and help you sort out or vet an issue. In my career, I have known many people, but I can say I have not had a formal mentor. I have usually identified people that were “go to” people, someone to help sort out a tough situation and help see issues from all sides. The word “mentor” comes from the character Mentor in Homer’s Odyssey. When Odysseus, King of...

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Haley Payne The Rise of Sleep Tourism
  • By Haley Payne, Head of Commercial, Pure Wellness

    • According to Hilton's third annual trends report, this year will be marked by a pronounced emphasis on wellness travel, with "rest and relaxation" identified as the pivotal trend shaping the travel landscape for 2024. Beyond the traditional offerings like spas, yoga classes at sunrise, and fitness centers with the latest equipment, the pursuit of personal wellness has undergone a significant transformation. As a result, today's travelers, whether embarking on a business trip or a leisurely vacation with friends or family, are placing a growing emphasis on prioritizing sound sleep and rest. Known as sleep tourism, this phenomenon refers...

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Matt Casella The Revolution of Hospitality: A Mix of Technology and Personalization
  • By Matt Casella, President, Richtech Robotics

    • Today, people want a journey that is specifically made to fit their preferences, extending from their initial online interactions before arrival to the personalized encounters they experience during their stay. This evolving expectation from guests coincides with a significant challenge facing the hospitality industry: labor shortages. Since July 2021, quit rates in the industry have consistently exceeded 4.5%, placing immense strain on hospitality workers. A recent AHLA survey noted that labor shortages are still one of the biggest issues hoteliers face in 2024, with two-thirds claiming to be suffering staff shortages and more than four in...

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Ken Miyachi 9 Ways Hotel Operators Can Detect Deepfake Activity
  • By Ken Miyachi, CEO, BitMind

    • Amid the onslaught of highly concerning news headlines underscoring the extent to which deepfake, AI-generated photo and video scams are driving rampant misinformation and wreaking havoc across cultural and societal frameworks, solutions are emerging to combat AI-driven misinformation and fraud before people fall victim to fraud. Deepfake technology has emerged as both a marvel and a menace. With the capacity to create synthetic media that closely mimics reality, deepfakes present unprecedented challenges in privacy, security, and information integrity. In the hotel sector, responding to these challenges is critical for the detection and mitigation of deepfakes.” Today’s deepfake...

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Elaina Lackaye Synergizing Design, Brand, and Operations for Better Results
  • By Elaina Lackaye, CID, NCIDQ, Design Director, Baskervill

    • Great hotel design doesn’t happen in a vacuum. Design, brand, and service are all elements that must complement each other, working cohesively to create a successful guest experience. The magic lies in integrating these elements so seamlessly that guests feel (not see, feel) the brand’s story from the moment they step through the doors, without even realizing it. That’s the sweet spot—where aesthetics, brand identity, and behind-the-scenes operations flow together to create a lasting impression that appears effortless.Throughout my time as an interior designer in the hospitality industry, I’ve seen firsthand how synergizing design, brand, and operations not only strengthens...

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Erik Eisen Keeping Infostealers from Checking-In
  • By Erik Eisen, CEO, CTI Technical Services

    • As cyber threats evolve, a new wave of malware is gaining traction in the criminal underground: infostealers. These potent data-harvesting tools are becoming a go-to choice for threat actors because of their ability to quickly and effectively siphon sensitive information—everything from banking credentials to email passwords—to sell on the dark web, fueling identity theft, financial fraud, and even corporate espionage. The use of infostealers has skyrocketed in recent ransomware campaigns, often serving as a reconnaissance tool. Attackers use infostealers to gather login credentials, allowing them to move laterally across networks, escalate privileges, and tailor their attacks to inflict maximum damage...

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