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HOTEL BUSINESS REVIEW

August FOCUS: Food & Beverage

 
August, 2012

Food & Beverage: The Biggest Challenges

According to Hotel F&B Magazine, the hotel food and beverage industry declined by an annual rate of 4 percent over the past four years, one of the foodservice industry's greatest declines over that period. However, with an upturn already noticeable, the segment appears poised for above-average growth. The hotel industry is rebounding from the recession; consumers are traveling more often and spending more on hotel foodservice. The long-term forecast indicates that hotel food & beverage will be a high performer over the next five years. The vast majority of new properties and brands entering the U.S. lodging industry offer either limited, or no food and beverage service at all. On the other end of the spectrum are full-service hotels with multiple restaurants, lounges, and banquet facilities. For these full-service hotels, the offering of food and beverage is not just a source of revenue but an amenity used to position the property within the marketplace. The bottom line - a hotel's Food and Beverage department is an exception if profit exceeds 20%. The August Hotel Business Review will provide readers with an in-depth analysis of the trends that are currently shaping hotel food and beverage. We present expert insight from a team of recognized leaders who will guide your food & beverage sales for success and make your profits sizzle!

This month's feature articles...

Greg Miller

In keeping with the distinctive character of the collection, vast varieties of spa services are available to guests and include indigenous treatments. As a result, the Destination Spa Collection is challenged with managing sixteen spas, all unique in their offerings and services, while at the same time, maintaining consistent standards and memorable experiences for spa guests. Our spa team leaders have seized this opportunity to open communication amongst all directors to create a sense of community and alignment. READ MORE

April  Bingham

Spas are everywhere. In fact, it wouldn't be unheard of to come across a hotel/resort spa, day spa, club spa, and medical spa within a 20-mile radius. While this abundance of spas gives consumers endless options, it makes it more difficult for spas to differentiate themselves from the competition. Deals remain to be a main consumer draw, but there are other approaches spas can take to rise above rate wars and give consumers an unforgettable spa experience - on a dime. READ MORE

Michael Haynie, SR.

More than a decade ago during the beginning of the spa trend, spas began cropping up in hotels all over the country. While hotel spas can be a profitable venture in some markets and resort hotels, in this economy, there are hotels in other markets that need to reevaluate the way they provide spa services to their guests. Marketing to outside customers, providing complementary services, downsizing the spa, or partnering with local spas and treatment professionals are just some of the ways that hotels can still offer the luxury of spa services without sacrificing profitability. READ MORE

Jane Segerberg

As we build spas for the future or re-invigorate current spa facilities and re-purpose spaces, the process and results have to make sense for investors. There is a new grading system for value, both from the spa guests' perspective and from our spa owner clients' perspective. Given the importance of value and the intricacies of spa design, the process becomes not just about an investment in the number of treatment rooms or upgraded finishes but how the spa can operate at its best and how we can elevate service levels. READ MORE

Kimberly DeOrsey

By recognizing that you are offering the guests a bonus for what they came for in the first place, relaxation, inner peace and calm, you can extend their experience, by offering a signature line that they can associate with your spa. The probabilities of them returning to the spa for more experiences and ordering product in person or online increases. READ MORE

Kate Mearns

Spas have certainly come a long way in the last 15 years. In that period, growth of the hotel spa segment has been rapid and for the most part sustained at a strong pace. That strong growth was fueled by two attitudes that hotel operators seemed to share: first, a “build it and they will come” mentality, and second, the “keep up with the competition” approach. And at first, the business results suggested it was working - guests were indeed visiting these new spas and strong spa revenues proved it. However, since the early growth days in our industry, we have had to survive numerous challenges to our businesses; and those challenges continue today. This article explores the top 8 key challenges facing spa operators today. READ MORE

Tyra Lowman

In October 2010, Hilton Worldwide launched eforea: spa at Hilton, the first global spa concept from its flagship Hilton Hotels & Resorts brand. The concept has grown to include eleven locations in eight countries around the world with more than 90 new spas currently in development for Hilton Worldwide's full service Hilton Hotels & Resorts, DoubleTree by Hilton and Embassy Suites Hotels brands. Here Tyra Lowman, senior director, global spas, full service and luxury brands, Hilton Worldwide, discusses design challenges intrinsic to the worldwide reach of the innovative spa concept. READ MORE

Melinda Minton

Social media is still a “thing” not completely embraced by our industry. However, those who are doing it right have already captured market share, cut costs and are leaving the others in the dust. Learn more about using social media in your spa and property and implementing it in a significant, yet easy way, right now. READ MORE

Chris Pulito

The amenity spa can and should be more than, well, an amenity. It should be a valuable profit center within the entire hospitality operation. This article focuses on three key areas: people, inventory and average service rate. It provides specific tips, steps and controls that are proven to lead to profit. READ MORE

Jacqueline Clarke

There has been a major shift in consumer behavior in regards to spas. This is due to a combination of factors that include lifestyles, the economy, and a concern with health. But whatever the reasons for this shift, wellness is in for the spa user, while pampering is in decline. Today spa users want “results,” this is clear form the latest spa market research published by Diagonal Reports. By results the users spa treatments which enhance wellness or make them feel better. Feeling better for most people means relaxing tense and tired muscles. Massage therapies which re-energize people account for most business in spas. The demand for massage is benefiting large spas and hotel spas in a major way because these spas already specialize in massage therapies. READ MORE

Mark  Wuttke

In spa branding, the retail company you keep is especially critical to preserving the integrity of your own brand. A five-star operation aligns with product brands that are akin in quality and image. Should any of those product brands show up at the local corner drug store or online discount retailer, the ripple effect can be damaging. This article provides a template for spa-retail brand alignment and offers tips for avoiding pitfalls in matching product brands to the spa. READ MORE

Kimberley Matheson Shedrick

The new economy, partnered with the explosive and dynamic growth of “always on” technology, has created multiple channels for hotel spas to engage a highly demanding, knowledgeable and connected clientele. Traditional marketing efforts must be accompanied by a shrewd Internet strategy to effectively engage and deepen the relationship with customers. This article explores practical techniques that can be applied with minimal investment to increase your market share as well as customer loyalty. READ MORE

Judy Singer

Do you want your spa to be profitable? Do you want your spa to help improve your hotel's occupancy and increase the revenue per guest? If yes, have you invested any resources (money, training or coaching) to help your spa director to be a better financial business manager? If you haven't invested in educating your spa director to be a spa "business" director, don't expect your spa to be as profitable as it could and should be. READ MORE

Peter Anderson

High operating expenses combined with increased “discounted” competition with day spas have painted hotel spas into a financial corner, making tight margins skin tight. Given that the average hotel spa can charge a premium of 50 to over 500 percent over the local day spa and still only achieve a departmental profit of somewhere between 9% and 15% is not only staggering, but leaves little room to navigate into more profitable seas. The global economic melt down that started in the latter part of the 3rd quarter 2008 and the tenuous progress that continues today has the potential to make a difficult situation dire. So the question at hand is how should a hotel or resort enhance, expand or reposition their spa and how best can they justify their “enhanced pricing” and still remain competitive? READ MORE

Cassie Hernandez

In the spa world of 2012, the word organic has been tossed around for some time, however the definition relayed to the general public has changed. While retailers, spas and cosmetic companies customarily have some type of organic ingredient in their demographic, not every company incorporates organics for the same reason. Some see organics as offering a higher concentration of pure ingredients and in turn, healthier for the skin while others view organics simply as an ingredient labels which helps sell the product or treatment. And, some see organics as a marketing ploy that doesn't make any difference in retail. Ultimately, we need consumer “buy in” to demand quality organic products on the market. READ MORE

Coming up in March 1970...