can, on the most basic level, answer the question: How are
we doing?
The data can then suggest how the market is reacting to
swings in ATR. [Has] the utilization decreased? Or, are guests
price-insensitive and [can] the spa increase ATR without
seeing any impact on utilization? Seeing the average data
points for [either] the market or the competitive set can then
assist in understanding if a spa is the ATR leader or how [its]
utilization compares to the average of the other spas in [its]
competitive set.
What is the Spa
STAR Report?
The Spa STAR Report, conducted by Smith Travel Research
and in partnership with ISPA, is an online benchmarking
tool for the spa industry. It tracks nine key metrics:
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5.
When looking at or reading the Spa STAR data,
what are the important factors to consider in
order to accurately analyze the benchmarks and, in
the process, make good business decisions?
The most important factor, even before looking at the data, is
to understand who you compare yourself to. Do the members
of the comp set compete for the same client base? For a destination spa, a comp set may include spas that are not even in
the [same] state. For an urban hotel spa, all competitors
maybe in a three-block area.
When looking at the performance data, it is important to
not get spooked by one month’s performance but to look at
the trend over a year or longer. Only then can a spa manager
really understand the local demand situation and how pricing
influences demand (if at all).
6.
In the past years, which benchmark area has
seen the most change and what could be the
contributing factor(s) to the change?
The good news is that the slide in ATR and average salon
service rate has stopped. That said, rates are not moving
much in either direction. It is probably fair to assume that
with an increase in luxury hotel demand, the demand for spa
treatments should increase. That then should allow spa operators to increase prices over time, and with that, hopefully
increase profitability. ■
Want to know more about the Spa STAR Report and benchmarking? Be sure to attend STR’s Senior Vice President Jan
Freitag’s Professional Development Session at the 2012 ISPA
Conference & Expo. Visit ispa2012.com to register for
Conference today.
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Total Treatment Revenue
Total Number of Treatments
Total Treatment Room Hours Available
Total Treatment Room Hours Used
Total Salon Revenue
Total Number of Salon Treatments
Total Salon Station Hours Available
Total Salon Station Hours Used
Total Retail Revenue
“A few years [back], I was approached by hotel spa operators and asked if we could establish