An Analysis of Challenges and Trends in Resort and Spa Management

This essay provides an in-depth analysis of the challenges and trends impacting the resort and spa industry. It begins by highlighting the industry's growth and importance within the leisure sector, acknowledging its substantial revenue and global market size while noting the absence of a market leader. The essay then identifies key challenges, including the global financial crisis and its impact on consumer spending and business operations. It further examines the effects of increased competition, leading to innovation and the need for businesses to adapt to changing consumer preferences. The essay also explores the evolution of services offered, from basic amenities to comprehensive wellness programs, and the influence of social media on brand reputation. Finally, it discusses emerging trends such as the growing emphasis on wellness, eco-friendliness, and stress management services, emphasizing the need for resorts and spas to adapt to these changes to remain competitive and meet consumer demands. The essay concludes by reiterating the need for resorts and spas to evolve to navigate the challenges and capitalize on opportunities in the dynamic market.

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The need and quest for establishing spas and resorts as part of leisure industry have been
on the rise in the 21st century. It is evident that there is a boom in the spa industry over the past
decade with an increase in the revenues amounting to more than $40 billion. According to the
recent reports from the International spa association, it has been said that there are more than 150
million spa goers globally. The large size of the market makes it one of the most important
leisure segments. Ironically, the spa industry lacks a market leader (Yu, 2016). The appreciation
of spa industry due to the wellness and healing by the consumers has made investors develop an
interest in the sector making the industry grow by double digits yearly for the past ten years. It is
of importance to state that spa industry provides comfort for many coupled with natural sceneries
such as beaches and parks.
Over the past few decades, the hotel and spa industry had witnessed and evidenced tough
and challenging times. The challenges are diverse due to the complexities posed by the global
markets (Yu, 2016). In the below discussion, some of the challenges that affect the hotel and spa
industry are highlighted. Also, the content states how the problems affect consumers.
Challenges facing spa and resort industry
Global financial crisis
The financial crisis that has been witnessed globally is something that has crippled the hotel and
spa industry. The declining bargaining power by the consumers as a result of continues inflation
makes the prices of goods and services expensive (Asiatech, 2011). The amount of disposable
income has reduced something that has, made consumers conscious of their buying and spending
habits. As a result of a decline in the disposable income among consumers, they have forgone
luxuries such as holidays due to the unforeseeable future demands and the unpredictability of

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events. For those that are new in the market and industry of hospitality, they have been forced to
close their premises due to the increase in the operating costs as little revenue trickle in yet the
running costs due to many employees continue to be a nightmare for many(Asiatech, 2011). It
has been witnessed that many companies have lost a lot of money and others are caught up in
massive debts in trying to cope with financial crisis. Some spas and hotels are even offering their
rooms at a low price than expected. In fact, the prices are ridiculous so to speak of, 80% of the
deal something worrying to the business owners. On the other hand, it is a relief for the
consumers as a result of the reduced prices and great offers and deals.
For resorts that have operations and business units in other countries benefit the most. It
happens that different countries have varying economic phases. In the case that one country is
experiencing recession and the other country is experiencing boom then it means that a spa will
benefit if it has its operations in a country having a boom. It is through globalization that firms
can diversify and mitigate risks. Also, if a resort has several branches in other places, then in the
case that some of the units are making continuous losses, then it would be substantial for the
parent spa to close the units that are making permanent losses.
Competition
Before the onset of the financial crisis globally, the hotel industry was experiencing a
boom. It was evident that hotels were being opened on a weekly basis across the globe as
compared to the past 50 years. With the recent competition for a market domination in a small
market has made the industry a risky affair (Brey, 2010). Some reports have indicated the
presence of deals that are staggering in particular days in various hotel booking sites. The deals
assume various shapes and forms where clients are offered one nit free after booking two nights

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and also being offered free breakfast. Such offers serve to attract and have more clients by
improving their experience in various hotels and spa. However, the looming competition has
forced some of the businesses out of industry due to the inability to satisfy the demands of the
industry. If there is an industry that is compelling is the hospitality due to the changing needs and
preferences across the world (Yu, 2016). Firms have to accommodate the trends that are
emerging to remain relevant in the industry.
The emerging trends ensure fierce competitions among firms as very few can provide and
implement the changes locking some businesses out of the market. A good example is the online
booking that came recently, and most hotels have adopted such a trend. Those hotels and spa
without websites where their clients can book online are viewed as of poor quality regarding
services and also the products they offer (Brey, 2010). On the other hand, most consumers view
online services as fast and efficient limiting the need to move and inspect the premises.
Competition has led to innovations such as booking of hotels is accompanied with a touring
agency reducing the need for the client looking for a means of transport in the case they are
tourists (Yu, 2016). Also, most websites have been designed in such a way that there is
information on different packages offered by the hotel and spa, such information is handy for the
consumers (saviny partners, 2011). Such websites are designed so as they increase the
competitiveness of the resorts and hotels.
As for competition, it is for the resorts to improve their services by ensuring that new
products are invented to attract new customers and also retain the existing ones. It is evident that
there are more costs while trying to implement and develop some services (Cohen and Bodeker,
2011). However, there more benefits after implementation and development phase. For any

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resort to remain and compete strategically, then analyzing and conducting research to understand
the needs and changes of consumers’ preferences is an important aspect.
Services offered
It is as a result of competition that there are numerous products and services offered by
hotels and spas. There are advancements in the type of services and also the amenities and
facilities at the disposal of the hotels and spas. In the past, there were moments when the only
thing that was offered by a hotel was just a bed and a table. A wardrobe was available on rare
occasions. With the recent advancements, resorts and spas that are rated two star now offer Wi-
Fi, a gym, and television (Yu, 2016). Competition has taken things to a higher level making it the
responsibility of the hotels and spas to offer such facilities for their clients.
The big challenge is that in future clients will demand more regarding facilities something
that will be an extra expense to the spas and hotels (Cohen and Bodeker, 2011). A good
illustration is the world class spas, golf courses; nightclubs are facilities that are offered as
standard services in hotels and spas. In the coming years to come things will assume a new
course as the demands and needs will change as per that time. It is important to take note of the
services offered by various hotels and spas as they can either make a good reputation for the spa
or a bad name. The strength of social media is so powerful that it can destroy a reputation about
the spa by people giving reviews.
Some businesses have seen few customers as a result of bad reviews by customers in the
social media platforms such a facebook and twitter. When people find such blogs in facebook
and twitter, they will believe such messages and in return avoid visiting such hotels and spas. On
the other hand, positive reviews about a particular spa in a social media influence more clients to

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pay attention and visit such places that have been praised by other people. Social media is
something that spas and hotels do not influence yet it can cause either damage or build a
reputation of a hotel.
In the global market, it would be important for a firm to be innovative in the services it
offers to have a competitive edge over its competitors. It is through offering new products that
satisfy the consumers that a resort will attract many customers. It is necessary that a spa should
develop customized products to suit individual needs of their customers. Tailoring services to
various customers ensure that each person has their tastes covered.
Trends in resort and spa
With the economic climate that keeps on changing, resorts and spas have to be ahead in if
they are to reap benefits associated with customers service and attain revenues both in the short
and long run (Kaufman, Lashley and Schreier, 2009). Achieving a good performance in the
market depends on spas paying attention to the trends, developing spa menus that reveal
consumer desires (Henkin, n.d.). Having unique geographical locations around the world has
made it difficult to maintain a constant stream of revenues.
A shift has been evidenced as consumers show more concern towards wellness and health
a move that has driven consumer needs. Such services involve increasing the levels of comfort
through having spa procedures with medication and also having treatments (Murphy, 2008). The
medical and health industries will gain from such collaborations with the spas and resorts.
According to a recent delegation in international spa summit, it was recorded that there were
huge opportunities for the preventive health sector as there is room for future growth. More focus
has been drawn on medical spas and luxury spas. Many stakeholders showed interest in working

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with the healthcare to a great extent. In the delegates conference, it was also analyzed that most
of the profitable ventures included healthcare and insurance regulatory among many other things.
The consumers of this generation are more conscious of health aspects and are also being price
sensitive a move that will strengthen ties between the spas and the health sector. It is clear that
spas continue creating constant awareness in wellness and future hospitals will have spa
offerings.
Environmental concerns are becoming an issue as a more proactive approach is being
taken by the consumers. A spa that is eco-friendly is something that is not likely to disappear
(Pizam, n.d.). The use of wood that has been recycled, electricity powered by the wind and
having recycling bins in strategic areas are issues that have been on the radar of investors of spa
who are now more sensitive to the environment. The green initiatives are gaining momentum in
the field of resorts and spas. Consumers will demand attention to a green environment as a green
spa revolution is already in place to ensure that consumers remain alerted on the issue of a safer
and a cleaner environment.
Consumers are also on the look for stress management services (Yu, 2016). The menus
from spas should keep this trend in their mind. Such distressing services include yoga, relaxation
massages, and meditation programs are on the increase and demand for such services in future
will increase. Such help alleviates stress responsible for diseases such as ulcers and arthritis
among other maladies. Many spas are now offering self-awareness programs aiming to help
consumers charge both spiritually and mentally.
In conclusion, it is evident that many challenges are threatening the growth and the success
of the resorts and spas. Issues such as financial crisis have left many crippled in this century;

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almost every part of the world is experiencing a crisis that affects the economy. Also, the
changing needs of consumers’ tastes and preferences are something that spas have to adapt and
accommodate the trends. The trends and changes in the modern business atmosphere are forcing
many spas and resorts to change their outlook to attract consumers and preserve existing clients.
An issue such as awareness of a green environment is an important aspect that shows that spas
and resorts are being socially responsible as a move to work with the consumers (Yu, 2016).
Consumers want a safer environment that is clean and more secure for future generations. All
that being said it is evident that spas have a challenge of keeping up with modern trends and have
to ensure they remain relevant.

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References
Asiatech (2011). Cite a Website - Cite This For Me. [online] Avaya.com. Available at:
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17 Aug. 2017].
Brey, E. (2010). Developing a Better Understanding of Resort Management: An Inquiry into
Industry Practices. Journal of Hospitality Marketing & Management, 20(1), pp.79-102.
Cohen, M. and Bodeker, G. (2011). Understanding the global spa industry. New York:
Routledge.
Henkin, G. (n.d.). Spa Trends Now and In the Future, by Gary Henkin. [online]
Hotelexecutive.com. Available at: http://hotelexecutive.com/business_review/2022/spa-trends-
now-and-in-the-future [Accessed 17 Aug. 2017].
Kaufman, T., Lashley, C. and Schreier, L. (2009). Timeshare management. Amsterdam:
Elsevier/Butterworth-Heinemann.
Murphy, P. (2008). The business of resort management. Amsterdam: Butterworth-Heinemann.
Pizam, A. (n.d.). International encyclopedia of hospitality management.
Salehudin, M., Prasad, D. and Osmond, P. (n.d.). CHALLENGES TO SUSTAINABLE RESORT
AND HOTEL DEVELOPMENT IN MALAYSIA. [ebook] Available at: http://www.ijbts-
journal.com/images/main_1366796758/0063-Muhamad.pdf [Accessed 17 Aug. 2017].

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saviny partners (2011). Challenges of the Spa Market – Savigny Partners. [online]
Savignypartners.com. Available at: http://savignypartners.com/2011/06/challenges-of-the-spa-
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Yu, L. (2016). The international hospitality business. New York: Routledge.