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SPA<br />

Spa businesses that do not offer a relaxation area may decide<br />

to redesign their space to incorporate a relaxation area, aiming to<br />

increase and maintain competitiveness, retain existing clients and<br />

attract new clients.<br />

From the industry perspective, if a small proportion of spas<br />

offer a facility or service, is it a unique differentiator which they<br />

may promote to attract more visitors? For example, if only 7% of<br />

spas offer a plunge pool, do they have a competitive advantage?<br />

Could your spa business benefit from introducing new facilities<br />

or services that are currently not very common in your market<br />

place?<br />

In order to attract visitors, it is critical spa businesses offer<br />

facilities, treatments, services and products which consumers expect<br />

and prefer. Study the industry benchmarks to fill in gaps in<br />

the spa’s offerings and ensure spa menus, other printed collateral<br />

and web sites effectively promote all of the offerings so the spa<br />

does not fail a “paper” or “internet-based” evaluation by potential<br />

clients.<br />

Another purpose for industry research is to identify new industry<br />

trends, which you may choose to, or not to, adopt, depending<br />

on the business opportunity for your spa business. The trend<br />

must comply with the vision, concept and brand image of your<br />

spa, so for example, you may choose not to address the trend<br />

of “more males visiting spas”, instead specialising in women’s issues<br />

and related therapies to create a higher level of expertise and<br />

reputation for such services, in comparison to your competitors<br />

who may target both female and male clients.<br />

“ …existing businesses can act to<br />

retain existing clients by ensuring<br />

service standards are high and their<br />

offerings are effective and relevant to<br />

their clients’ needs. ”<br />

New spa developments may also use the industry statistics to<br />

assist the concept design and planning of a new business. This is<br />

often seen as a negative for existing survey participants, however<br />

the availability of industry statistics may actually benefit existing<br />

businesses as new entrants easily identify where the market is currently,<br />

or potentially saturated, and choose a different concept<br />

and path by offering alternative services. This also benefits the<br />

new entrant by offering complementary services, rather than the<br />

same services, and attempting to displace clients from existing<br />

spas. Any new entrant into the market may be challenging, however<br />

existing businesses can act to retain existing clients by ensuring<br />

service standards are high and their offerings are effective and<br />

relevant to their clients’ needs.<br />

Why Suppliers, Financial Institutions, Associations, Tourism<br />

Authorities and Other Related Organisations Need Spa Industry<br />

Statistics<br />

Over recent years, there has been a lot of hype about the<br />

spa industry which has generally been positive for spa businesses<br />

in terms of generating visits. However the downside of hype<br />

without accurate facts is that suppliers, financial institutions, associations,<br />

tourism authorities and related organisations cannot<br />

support the industry effectively. Industry statistics give these related<br />

organisations the necessary inputs for their own business<br />

analysis and planning activities and it is very challenging for these<br />

organisations to commit to the spa industry without supporting<br />

information. For example:<br />

Suppliers - design and develop relevant products and equipment to<br />

support spa business;<br />

Financial institutions - approve loans for new spa businesses or<br />

expansion of existing spa businesses to realise business visions;<br />

Associations - rally government and suppliers for industry incentives<br />

and group discounts to minimise spa business costs; and<br />

Tourism authorities - allocate funds for spa industry marketing and<br />

awareness campaigns to increase spa visits.<br />

The Connection Between Spas and Tourism<br />

Domestic and international tourism statistics are included to<br />

illustrate the volume of travellers and the incremental spa visits<br />

which may be possible by effectively using relevant channels to<br />

promote spa services and spa products.<br />

Destination spas are close to tourists, given their integration<br />

with accommodation facilities, and have a great opportunity to<br />

maximise spa visits.<br />

Day spas may also tap into this market segment through cooperative<br />

marketing campaigns with nearby hotels (Source: Intelligent<br />

Spas, Spa Integration for Hotels, Resorts, Serviced Apartments<br />

and Similar Facilities).<br />

Julie Garrow, Managing Director of Intelligent<br />

Spas represented three of the big four<br />

global tourism, leisure and hospitality consulting<br />

firms in Australia and Singapore between<br />

1992 and 2001 and draws on over seventeen<br />

years research experience from both industry<br />

and consulting perspectives.<br />

Intelligent Spas is an independent research<br />

company specializing in the spa industry.<br />

Founded in Singapore in 2001, it has pioneered<br />

spa industry research in the Asia Pacific region<br />

and continues to publish a range of Spa Business<br />

& Operations Manuals, Spa Consumer<br />

Surveys and Spa Industry Surveys to assist the<br />

development and growth of this niche industry. Intelligent Spas<br />

provides research which businesses find logistically and financially<br />

impossible to collect.<br />

Independence Defined...<br />

Intelligent Spas is unique as it offers a completely independent<br />

view of the spa industry. All our research is self-funded and Intelligent<br />

Spas:<br />

1.<br />

2.<br />

3.<br />

4.<br />

●<br />

●<br />

●<br />

●<br />

Does not conduct consulting studies for individual<br />

businesses;<br />

Does not form alliances with third parties;<br />

Does not have interests in other businesses; and<br />

Is not influenced by members, committees or sponsors.<br />

This independence policy ensures the confidentiality of all<br />

individual survey responses submitted is maintained, and publications<br />

are prepared without bias and for the benefit of all members<br />

of the spa industry.<br />

For more information, please visit www.intelligentspas.com<br />

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 29

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