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28 JULY - AUGUST 2008
SPECIAL FEATURE∫Õ°¢à“« ‡≈à“‡√◊ËÕß
SETTING ONE OF THE HOTTEST HOSPITALITY trends of recent
years, spas are being designed into almost every new
four and five star hotel property. To maintain competitive
positioning and retains market share, established resorts
are also adding spas to existing facilities. For most resort
properties however, the spa has not expected to be a significant
contributor to the bottom line. Rather, the spa was added to
compliment their core business of selling rooms or real estate not
as a device to drive new business. Knowing the spa may well be
a marginal financial contributor to overall resort operations,
considerations must be given to how much they invest in spa
technology. Management must be concerned with how they are
able to realise a positive Return On Investment (ROI). For the
purpose this article, the ROI is considered as the ratio of net
benefits to the cost of adding the new technology.
ISSUE : Employee Productivity
Surprisingly, there are still several resort spas managing their
treatments agenda with pencil and paper. Daily and monthly
statistics are still maintained on an electronic spreadsheet.
Typically, the most advanced technology in a spa is the POS
system installed to link client charges back to the PMS.
Employee productivity can be positively affected by the
installation of a proper spa management system capable of tying
in the booking agenda, therapist capabilities, daily and monthly
statistical reports and the resort’s PMS.
The increased employee productivity will result in improved
customer service, better utilisation of available times, better
matching treatments with therapists and client requests, etc.
ISSUE : Improving Customer retail Management
Retention and use of client data is extremely important in
judging the value of an IT investment and improving the ROI.
Properly educating staff and developing standard practices for
data input will dramatically increase the value of a spa's IT
investment. Trying to maintain proper historical and medical data
on a client through manual means is a tedious task, and nearly
impossible.
With a proper IT solution, spas are better able to analyse
membership data and service clients, which will have a positive
impact on the property’s yield and ROI. The data will allow the
managers to create a clear CRM philosophy and drive a
fundamental change to their corporate practices.
ISSUE : Maximise Yield Per Customer
Yield management is more than a buzz word, and can be an
effective tool to help the resort maximise revenues to achieve a
quicker ROI. Maximising revenue is a balancing act between the
contradictory goals of maximising yield (price-per-treatment) and
maximising the number of clients in the spa.
Most spa directors will recognise that the demand for
treatments greatly exceeds the supply during certain parts of the
week, or even certain parts of the day. Using historical data, they
can recognise when demand is strong, when it is moderate and
when it is weak. This is a key step in optimising the spa's
revenue. Using this data, management can set pricing strategies
to manage demand at each level. In times when demand is
strong, prices could be increased to bring demand more in-line
with supply. For times when demand is weak, perhaps catering
to locals with lower priced treatments will be an effective
measure to increase demand and boost revenues. Yield
management is effective tool to improve the ROI.
ISSUE : Reduce Inventory Costs
and Out-of-Stocks
Keeping a closer eye on inventory can speed inventory turns
and reduce the amount spent on slow-moving products.
Further, a well maintained inventory should assist the spa's
boutique shop in ensuring the faster selling items remain in
stock. In addition, knowing what is on the shelf also sends a
message to staff, naturally results in less staff pilferage. Each of
these can help increase the return on investment in spa
technology.
Summary
Most spa solutions should be capable of adding some value
to the spa, particularly in providing a booking engine for spa
treatments. These systems should also be quite capable in
providing advanced reporting to help spa and resort
management in analysing data. These alone should provide
some return on investment.
Itís a good investment for a resort property to implement a
proven Spa Management System, and to move away from the
pencil and paper and electronic spreadsheet options. In most
cases, the reduced costs, enhanced analytical tools and increased
customer service are benefits that exceed the level of investment.
Coming up in the next issue: Addressing ROI issues relating to
multi-national groups and integration to Hotel Systems.
Bill has been consulting, installing and supporting solutions in the
global spa and leisure industry since 1982. He has been involved
with over 1000 systems installations in 40+ countries from Asia to
North America to Africa & Australia. Bill is presently working with
Concept Software Systems throughout Asia-Pacific.
ACHIEVING A POSITIVE RETURN ONTECHNOLOGY INVESTMENT
28-29TSM10W1 7/31/08 1:00 AM Page 28
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29JULY - AUGUST 2008
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28-29TSM10W1 8/5/08 12:19 AM Page 29
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