The hospitality industry has grown consistently in the past decades. The World Travel and Tourism Council statistics indicate that it is the fastest growing industry. In fact, the industry is accountable for 10 percent of the global gross domestic product. The industry provides about 300 million jobs and continues to support families. The inception of internet and advertising services has improved the creation of awareness of available services and enabled the industry players to have a worldwide presence which has seen the improvement of clients and the revenues. The spa and wellness services have consistently gained recognition worldwide. The population is now more concerned with their health, and with most people working constantly, these facilities become the best option for comfort and improving mental and physical wellness.
The International Spa Association defines spas as places "devoted to well-being through a variety of professional services that encourage the renewal of the mind, body, and spirit." They include a variety of services for health management and relaxation. The activities include nail care, steam baths, massages, body scrubs, facials, and waxing. The presence of spas has improved and by 2015, there were about 120,000 spas around the world, and these contributed to the generation of about $99 billion in revenues. The United States leads with 21,000 spas that generate $16 billion. The market for this businesses is expanding progressively and is forecast to rise at a compound annual growth rate (CAGR) of 5.66% from 2017 to 2021. The rate is an encouraging one and proves that the population is accepting the industry and increasingly opting for it when it comes to relaxation and wellbeing options. Tourism, personal income as well as the busy modern life contributes to the need for this facilities. The urban life and lack of nature areas also contribute to the need for such areas to relax the body (Schmidt, 2017).
The industry faces challenges in the promotion and communication of its services. The advancement of such facilities involves the introduction of new services and refining of the previous ones to include new techniques and also the inclusion of new technology. The improvements listed are only as important as the awareness the users have on them, and this makes it paramount to explore all available options to ensure the customers are up to date with what services are provided by different facilities around them. The location of such services also has to be communicated to the clients to ensure the business receives an adequate number of users to boost their revenues for growth and supporting the facilities. The internet has offered options in advertising and different ways of reaching the market but has not in totality eliminated the problems challenging the sector.
The perception about the sector is a significant challenge that needs addressing. The spas viewed as locations for shady business activity. Some spas are misused by managers who involve in illegal activity, and this has negatively impacted what people think about them. These areas were seen as relaxation points with innocent and legal activity, but reports on the promotion of perceived immoral activity within the industry have eroded the ethics of the sector. The opinion has changed on what spa activities include and this makes it difficult to promote the facility as an ethical and moral place that people can visit to engage in activities that foster health and well-being. The view of spas has even affected employees who work in them and also discouraged prospective employees interested in working in the sector. The industry is fighting an uphill battle to combat the preconceived notions about the business and restore the image to give it the recognition and merits that it deserves (Wong, 2009). It is crucial that the industry reclaims its image to encourage people of respect to visit their facilities for the services and improve revenues.
The industry experiences changes in consumer profile that affect the business and revenues. Traditionally, women have been the most customers but increasingly, men have also taken interest, and the facilities are getting more male customers. The challenge is in gearing the industry to accommodate both male and female clients. Similarly, the spa businesses were mostly for the old population, but the youth population interested and visiting spas have increased. The numbers improve returns for the business owners, but the new challenge is promoting and understanding a new market with different needs and specifications and trying to incorporate this to ensure customers retention. The different clients prefer different settings and activities. Furthermore, the different profiles prefer to access this facility at different sites to each other. The old would prefer to experience the different services in a different location to the young, and likewise, the male population would prefer areas exclusive for them. Sometimes, fulfilling this is impossible, and in favorable cases, the owners find enough rooms or space to meet this needs.
The technology and products used in the spas are also a challenge to operators in the field. The technology used in these facilities is constantly changing and development of new gadgets and introduction into the business. The spas have to keep up to date to keep competitive and have to deal with expenses of upgrading their systems to match the customers' needs. The competitive nature of the business is also affected by the preference of clients to a specific technology. The average consumer, today, is informed on the different options available in the market and can form preference to certain brands and this affects the market. Products manufactured for use in these facilities are also varied. The consumers are sensitive to the products used on them. They have preferences for products based on brands, and the facility has to accommodate their needs.
The purchase of a variety of products is expensive in comparison to mass consumption of a specific product which helps easily apply economics if scale and this affects the revenues the company gets. The company has to avail this options to promote their businesses (Sonal, 2012).
The hospitality brands have adopted connection of spas and wellness needs in brand development. Hotels host visitors on vacation and whose needs align with those that spas provide. They offer an environment for relaxing and getting rid of the hectic modern life in the cities and promote health and wellbeing. The hotel brands develop the spa facilities within their hotels for clients on short and even long visits and sometimes incorporate this into packages or as a complimentary which boosts the branding of a hotel to the population which is nowadays significantly concerned about health. The motive is to prove that the beyond the offering of accommodation services the hotel in one package can offer clients an opportunity to relax and while at it enjoy activities that promote health and even anti-aging (Kostuch, 2017).
One such hotel brand is the 1 Hotel South Beach in Miami which opened a spa. Haybarn reflects the hotel's environmentally conscious brand. The hotel adopted it's reclaimed hickory floors and sustainable approach. They offer detox juices and Himalayan salt stone massages with the addition of yoga, meditation, and a lycra-like fit with Miami Beach. Its roots lie deep in Daylesford, an estate in London (Turner, 2017). The hotel, in this case, incorporated a well-known British brand and this has reflected its concerns on health and wellbeing which, in turn, develops the hotel brand and bring s more clients and therefore, better revenue.
Conclusion
In conclusion, the hospitality industry can develop more and gain more revenues by improving and incorporating other brands that relate to what they offer. The spa and wellness services face challenges that can be solved with the right support from the industry.
Perception of the industry can be improved by working together in bodies to reassure the clients of the steps taken to eradicate unscrupulous business people in the industry.
References
Kostuch. (2017). TOP TRENDS IN SPA-AND-WELLNESS SERVICES. Hotelier.
Schmidt, S. (2017). The Growth of the Global Spa Industry. Market Research Blog.
Sonal. (2012). The Challenges of the Spa Industry. Spa Balance Consulting.
Turner, S. (2017). Why Are Luxury Hotels In Love With British Spa Brands? Forbes.
Wong, E. M. (2009). Different challenges for spas. The Star.
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