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

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29JULY - AUGUST 2008

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