This study analyzes the rising importance of the development and enhancement of a health and wellness focus within resort hotels. Market trends, consumer demands, revitalization efforts, and bottomline impacts are examined as they relate to the resort spa industry of today

Johanson, Misty M.

DigitalCommons@Florida International University

Hospitality ReviewVolume 22Issue 1 Hospitality Review Volume 22/Issue 1 Article 31-1-2004Health, Wellness Focus within Resort HotelsMisty M. JohansonUniversity of Hawaii at Manoa, null@manoa.hawaii.eduFollow this and additional works at: http://digitalcommons.fiu.edu/hospitalityreviewThis work is brought to you for free and open access by FIU Digital Commons. It has been accepted for inclusion in Hospitality Review by anauthorized administrator of FIU Digital Commons. For more information, please contact dcc@fiu.edu.Recommended CitationJohanson, Misty M. (2004) "Health, Wellness Focus within Resort Hotels," Hospitality Review: Vol. 22: Iss. 1, Article 3.Available at: http://digitalcommons.fiu.edu/hospitalityreview/vol22/iss1/3Health, Wellness Focus within Resort HotelsAbstractThis study analyzes the rising importance of the development and enhancement of a health and wellness focuswithin resort hotels. Market trends, consumer demands, revitalization efforts, and bottomline impacts areexamined as they relate to the resort spa industry of today.KeywordsHealth, Wellness, Hotel, Lodging, Spa, Consumer DemandsThis article is available in Hospitality Review: http://digitalcommons.fiu.edu/hospitalityreview/vol22/iss1/3Health, wellness focus within resort hotels by Misty M. Johanson This study analyzes the rising importance of the development and enhancement of a health and wellness focus within resort hotels. Market trends, consumer demands, revitalization efforts, and bottomline impacts are examined as they relate to the resort spa industry of today 0 nce only sought &r by the rich and famous, the spa segment of the lodging industry has evolved from a luxu- rious amenity offered only at elite resort destinations to a necessity for resort hotels as spas have become an integral amenity for a growing number of travelers today.' Gone are the days when resorts focused their spa marketing and development efforts on designing fitness facilities to attract guests. Tbday, resorts are focusing on well- ness tourism as a more holistic approach to physical conditioning, essentially redirecting marketing and development efforts on spa amenities that center on mind, body, and being.2 As fitness still remains an integral part of the wellness experience, the exercise- focused spas of the early '90s no longer can compete with modern facilities that offer life-enhancing, stress-reducing, and skin-improving techniq~es.~ Resort properties that identify this trend and allocate their resources toward a health and wellness focus will dominate the resort market? Trend is growing Some organizations have successfully capitalized on this growing trend. The Charleston Place in South Carolina, for example, recently completed a six- month spa renovation in order to enhance its facilities to focus on health and wellness; marketing efforts are now targeted toward high-end cu~tomers.~ Several other resort properties such as the Peaks Resort (Colorado), the Golden Door Spa (California), the Regent Spa (Hang Kong), and the La Quinta Resort and Spa (California) have 24 FZU Hospitality Review /Spr ing 2004 Contents © 2004 by FIU Hospitality Review. The reproduction of any artwork, editorial or other material is expresslv prohibited without written permissionfrom the publisher, excepting thatone-time educational reproduction is allowed without express permission.taken the same approach and have found the renovations to be a tremendous revenue builder for all operational departments throughout the properties." Changing demographics and a pursuit for healthier lifestyles have produced a strong demand for wellness spas. "If there is a single reason for spa owners to look to the future with confidence, it is the fact that its target audi- ence - adults with disposable income - is growing and aging. There are 80 million baby boomers and none of them are getting any y~unger."~ Health Fitness Dynamics, a Florida spa consulting firm, recently conducted a study on user trends of over 36 resort spas focusing on health and wellness tourism, asking nearly 3,000 spa- goers if they would choose one resort over another because of the enhanced spa center; 82 percent of women participants and 78 percent of male participants responded affirmatively? Compelling statistics have sparked a flurry of resort spa reno- vations aimed at attracting guests by offering the best services and facilities money can buy.' In addi- tion, properties without existing spa services are implementing and expanding their facilities at an unprecedented rate.1° Chains are varied Spa experts have suggested that the recent renovations are creating different types of new and emerging spas. First is the amenity spa, or resort spa, and second is the destination spa, or spa resort. The difference is that within an amenity spa the resort's bottom line is not necessarily built around the success of the spa. In this type of property the spa is viewed by the guest as added value, not neces- sarily acting as the main profit center for the organization. However, the spa resort is a destination spa, where the resort's main function and purpose for being is built around the success of the spa amenities offered. Here the spa is a revenue generator for the property rather than existing to cover costs. While both types of spas have grown in number over recent years, the majority of the growth has occurred with amenity or resort spas." Spas need updating Throughout the 1990s spa amenities relaxed resort guests and kept owners rich.lz However, to compete effectively in today's market, resort operators need to update and refurbish their spas to meet the changing demands of spa- goers. In a recent study, researchers probed to h d  out why spa travelers visited resort spas; 41 percent of men stated stress was the reason, while only 22 percent of women suggested this was their purpose for going. On the other hand, 45 percent of women said they visited because they "felt l i e  splurging"; 26 percent of men so responded. While 39 percent of women admitted going to the spa to "take care of themselves," only 19 percent of men suggested that was the -- Johnson 25 Contents © 2004 by FIU Hospitality Review. The reproduction of any artwork, editorial or other material is expresslv prohibited without written permissionfrom the publisher, excepting thatone-time educational reproduction is allowed without express permission.reason for their visit. In addition, males do not seem to value the experience as much as women, since only 30 percent wanted to return, versus 50 percent of women.13 These statistics suggest that spas may not be currently focusing on or sufficiently delivering their promise in terms of customer satis- faction, creating a memorable experience, having a well-main- tained and well-staffed spa, or being male-friendly. Spa focus detailed A series of case studies details sthe successful implementation of a health and wellness focus within the resort spa setting of today. Domestic resort hotel: In an effort to reposition Hawaii's visitor industry products, a strategic plan was created to posi- tion the islands as the health care and wellness center of the Pacific. Resort hotels throughout the Hawaiian Islands are doing their part to enhance their existing facil- ities in an attempt to meet the needs of the growing demand, of travelers for a health and wellness focus in the market. The Hilton Hawaiian Village in Oahu, a four-star, 2,545-room resort, has currently undergone a $95 million spa marketing and development enhancement in its existing property, the largest of its kind world-wide. In 2001 the Hilton opened a 42,000 square foot Spa and Wellness Center in the newly-built Kalia Tower. The spa is equipped with high tech treat- ment facilities and staff, including an open air, state-of-the-art Cardiovascular Center labeled "Holistica Hawaii." The Holistica Center markets advanced wellness amenities such as electron beam topography scanning equipment that allows for the detection of internal diseases and pre- cancerous conditions. Business resort hotel: The Peabody Orlando in Florida is yet another example of a resort which revitalized its spa to offer wellness and health amenities to guests. Their wellness center focuses on cholesterol screenings, stress tests, exercise consultations, risk assess- ments, and other health-related demonstrations by a team of exer- cise physiologist Lifestyle special- i s t ~ . ' ~  These enhancements have been found to benefit the resort because of added revenue from the traveler who otherwise would not have taken the time from a busy schedule to try these procedures. "A major advantage to installing cutting-edge equipment is that people who exercise regu- larly are fascinated with new para- phernalia. Using it while they are attending a meeting or on vacation eliminates the need to search for a club at  home and spend extra money to try the equipment. A combination of being ahead of the curve in knowing about the equip- ment and saving guests time and money is tough to beat."I5 International resort hotel: The successful implementation of health and wellness within the resort spa setting can also be found 26 FIU Hospitality Reuiew /Spring 2004 Contents © 2004 by FIU Hospitality Review. The reproduction of any artwork, editorial or other material is expresslv prohibited without written permissionfrom the publisher, excepting thatone-time educational reproduction is allowed without express permission.within the operations of the Movenpick Resort and Spa Dead Sea in Jordan. At this resort, the marketing and development strategies are centered around "a strong sense of place," as only "beneficial rays" from the sun can extend to this level below the sea; virtually no UV radiation exists to cause skin-related  problem^.'^ For these reasons individuals from all over the world suffering from such illnesses as psoriasis travel to the sun, fun, and beach resort in Jordan without hesita- tion. Interestingly, German health funds pay for visitors' single occu- pancy a t  the spa.'" "The wellness business not only provides a ready market, especially since the lower cost of Jordan's labor force would mean very competitive rates, but also a long-stay market that could help balance seasonal troughs."18 Spas incur growth According to the International Spa Association's 2000 Spa Industry Study conducted by Pricewater- house Coopers, U.S. spa revenues increased 129 percent in the latter half of the 1990s; half this growth is accounted for by an increase in spa visitor spending, while the other half represents nearly a 20 percent annual growth rate in the number of resort spas. More aston- ishing is that over a two-year period, between 1997 and 1999, resort spa visits increased by nearly 60 percent, while revenues climbed 30 percent during this same period.lg Most convincing are the findings from a nation-wide study of resort spas suggesting the following would increase as  a direct result of renovation of existing spa facilities:" room rate, 57 percent perceived value for room rate, 70 percent occupancy, 73 percent length of stay, 43 percent marketing advantage, 97 percent revenue per occupied room, 83 percent number of people per occupied room, 27 percent Spas are focus Resorts that focus on wellness tourism as a more holistic approach to physical conditioning by essen- tially redirecting marketing and development efforts on spa ameni- ties that center on mind, body, and spirit will dominate the resort market since spas have become an integral amenity for many trav- elers today. Future research in the area of spa management needs to be expanded in the area of service quality. As the demand for and number of resort spas continue to increase, marketing for the guest will become even more competitive. Service quality is the key factor that is suggested to differentiate one luxurious spa from the other.21 Contents © 2004 by FIU Hospitality Review. The reproduction of any artwork, editorial or other material is expresslv prohibited without written permissionfrom the publisher, excepting thatone-time educational reproduction is allowed without express permission.Future studies will need to address specific research questions such as the following: What is the relative impor- tance of various health and wellness spa attributes within the resort? What is the performance of resort spa employees in providing these services to their guests? One reliable and valid way to measure these research questions is by using quantitative method- ology such as an importance1 performance analysis (IPA). A study analyzing data evaluating the importance and performance of health and wellness attributes offered a t  a resort spa in Hawaii using a software program called PINPOINT is currently being conducted. Final tabulated results of the importancelperformance scores will present a two-dimen- sional grid revealing the strengths and weaknesses of the variables (services and features) being offered by the resort spa. As a result of such research, significant marketing and management impli- cations as well as the identification of areas for service quality improvements for the resort spa can be determined. Few authors have applied the IPA technique to identlfy service failures and successes within the hotel industry. Hudson and Shepard measured service quality expectations through the IPA method within an Alpine ski resort.zz Verhoven and Masterson used the IPA technique in measuring time-share owners' satisfaction within the interval vacation segment of the lodging industry.= Martin employed the IPA method when evaluating guests' perceptions of sewice quality within budget  hotel^.^' However, this type of analysis has not been implemented in order to determine health and wellness importance or performance within a resort spa environment. Future research should focus on the imple- mentation of the IPA technique within the resort spa industry as a powerful tool in marketing and development for those properties developing or enhancing their spa facilities. References 'S. Barter, "Haw Healthy Is Your Spa?" Bottomline (ApriYMay 2000): 10-12. ZL. Grimaldi, 'Wellness Programs Put Physical and Spiritual WeU-Being On the Aeenda." Meetines & Conuentions (Febmarv 1998): 77-78,80-83. lC. Benini, "Gatheling Steam at Spas," Meetings & Conuentions (August 1999): 45- 50.52-53. 'F! Monteson and J. Singer, "Health Spa Amenities That Attract Business," HSMAl Marketing Reuieu, (May 1997): 44-46, 'J. Colbert, 'Spa Marketing: Tips for Promotions," LODGING (May 1999): 70-73. T. Dela Cruz, "Spa & Fitness,"HOTELS (August 1999): 82-88. 'Ibid. 'P Monteson and J. Singer, "Spa Trends: Survey Evaluates Spa Habits of Men and Women," LODGING (May 19991: 73. gColbert. 'OBarter. "P. Monteson and J. Singer (1997). and T. Dela Cruz, 'Defining Spas," HOTELS (May 2001): 74A-74E. "Benini. '3Montesoo and Singer. "Colbert. 28 FIU Hospitality Review /Spring 2004 Contents © 2004 by FIU Hospitality Review. The reproduction of any artwork, editorial or other material is expresslv prohibited without written permissionfrom the publisher, excepting thatone-time educational reproduction is allowed without express permission.l5Bid. ISM. Lemer, "Instant Heritagc: Thc Movenpick Dead Sea," HOTELS (September 1999): 56-58. "Ibid. "Bid. ImJ. Marsan, 'Nurturing A New Age," HOTELS (August 2001): 63-68. -Benini. 21M. Cmcker, "Inspecting a Spa." Meet- ings & Conwntwns (September 2000): 55-64. =S. Hudson and G. Shepard, "Measwing Service Quality a t  Tourist Destinations: An application of Importance-Perfoma~ce Anal- ysis to an Alpine Ski Resort." Journal of Pauel and TourismMarketingI, no. 2 (1998): 61-78. 1% Verhoven and L. Masterson, "Soit Amenitv Attributes Kev To A Oualitv Vaca- tion ~xierience," H S M ~  ~ar)lbting"&uiew 12, no. 1 (1996): 394. "D. Martin, "An ImportantPerformance Analysis of Service Providers: Perceptions of' Qualitv Service in the Hotel Industw." Jou& of Dave-1 and lbunsm ~arketing.3. no. 1 (1996): 5-1. Misty M. Johanson is Assistant Professor of Hoyitalify Management in the School of Tmvel Industry Management at the UniversifyolHawaii at Manoa. Johanson -- - Contents © 2004 by FIU Hospitality Review. The reproduction of any artwork, editorial or other material is expresslv prohibited without written permissionfrom the publisher, excepting thatone-time educational reproduction is allowed without express permission.

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