Unlocking the Revenue Potential of Spas with Personalized Skincare: A Winning Formula
When it comes to hotel management, there's a hidden gem that’s often underestimated: the spa. Yes, that serene, custom-scented wellness retreat where stressed-out travelers and local guests alike flock to unwind. But beyond the relaxing massages and herbal teas, hotel spas are a major revenue generator—if you know how to tap into their full potential.
Just ask Suzanne Holbrook, Senior Corporate Director of Spa Operations, Marriott International, Ritz-Carlton, who’s been championing the financial power of spa and wellness services for years. Overseeing more than 160 hotel spas across luxury brands like The Ritz-Carlton and JW Marriott, Holbrook has made it her mission to prove that spas aren’t just an amenity—they're a business. In fact, back in 2019, Marriott’s Americas region raked in nearly a quarter of a billion dollars from spas alone. Yes, you read that right: a quarter of a billion dollars. Talk about a massage with benefits! (And I’m not just talking about aromatherapy.)
But here’s where it gets really interesting: personalization. According to a February 2024 report by Medallia Research, 61% of consumers are willing to spend more on personalized experiences, but only 25% feel like they’re getting them. That’s a huge missed opportunity for hotels, resorts, and yes, spas. People aren’t just looking for any facial—they’re looking for their facial, a treatment that’s tailor-made to meet their unique skincare needs. And guess what? The data shows that customers who receive personalized services are far more likely to rate their overall satisfaction as very high. You don’t need a crystal ball to see that this leads to repeat business, glowing reviews, and, yes, more revenue.
Customized Skincare: The Spa Game-Changer
As a resource partner in the spa industry, I have seen first-hand how offering personalized skincare can significantly elevate the guest experience. By working with your resource partners, spas can customize treatments that cater directly to individual guest needs. Imagine offering a skincare regimen as tailored as a resort’s pillow menu. (Except these pillows exfoliate, hydrate, and reverse aging—just kidding!)
Personalized treatments are not just a “nice-to-have” anymore. They’re essential for meeting the high expectations of today’s spa-goers. By leveraging your resource partners to offer customized skincare, your spa can significantly enhance the guest experience, drive satisfaction, and, yes, boost revenue.
Upselling? Absolutely.
Speaking of revenue, let’s not forget about the power of upselling. High-performance skincare products provide a prime opportunity to upsell treatments, allowing guests to extend their spa experience long after they’ve left the property. Think about it—every time they use that serum or moisturizer they bought from your spa, they’ll be reminded of the fantastic treatment they received, and the loyalty to your brand grows.
Holbrook hit the nail on the head when she said in her Spa Executive Magazine interview that dynamic pricing and upselling are key to spa profitability. Her Spa Plus program, which offered upgrades within treatments, boosted spa revenues by $8 million in 2019. A resource partner can provide the right tools for these kinds of revenue-generating opportunities.
Sustainability and Quality: More Than Buzzwords
Let’s be real—today’s consumers aren’t just savvy; they’re eco-conscious. They want to know that the products they’re using are as good for the planet as they are for their skin. That’s why working with resource partners that prioritize sustainability and quality is essential. Whether it’s plant-based formulations or in-house manufacturing that ensures quality control, it’s crucial to align with partners who offer flexibility while maintaining high standards.
Training and Support: Empowering Your Team
I can’t emphasize enough how crucial it is to invest in your spa team. They’re the ones who bring the treatments—and the brand—to life. Partnering with a brand that offers comprehensive training programs ensures that your staff is not only well-versed in delivering exceptional treatments but also confident in upselling products. After all, a well-trained team isn’t just delivering facials; they’re delivering an experience that boosts both guest satisfaction and your bottom line.
Exclusive Partnerships: Building the Future
Finally, let’s talk about growth. The brand partners can offer exclusive partnerships that help build brand loyalty and increase market presence. Whether through co-branded initiatives or exclusive offerings, these partnerships can set your spa apart from the competition and drive long-term success.
In a world where wellness is becoming a top priority for travelers and locals alike, now is the time to seize the revenue-generating power of your spa. With the right mix of personalization, upselling, sustainability, training, and exclusive partnerships, your spa can go from being just another hotel amenity to a profit powerhouse.
The 2023 ISPA Industry Study supports this, noting that the spa industry hit $20.1 billion in revenue in 2022, a 6% increase over pre-pandemic levels (ISPA). Retail sales, driven by the right products and partnerships, are a major contributor to this success, and leveraging resource partners to enhance these opportunities can truly drive profitability.
After all, if Marriott can rake in a quarter of a billion dollars from spas, what’s stopping you?
Let’s make spa revenue a force to be reckoned with.
About the Author:
Lisa Pepe is the Business Development Manager at ClarityRx, specializing in forging partnerships with multi-unit spas, hotel and resort spas, and medi-spas to deliver customized, plant-based skincare solutions that drive results. When she’s not strategizing ways to elevate spa revenues, you can find her cheering on her two baseball-playing sons, exploring hidden foodie gems, or on the hunt for unique vintage furniture pieces.
Sources:
Spa Executive Interview with Suzanne Holbrook, Spa Executive, November 2, 2021
Medallia Research Report, February 2024
2023 ISPA Industry Study, August 2023