Jan
25

PKFC: Hotel Spas Lag Industry Recovery

By

The great recession appears to have been harder on hotel spa operations than on hotels themselves. According to a new study released by PKF Consulting USA (PKFC), hotel spas experienced deeper declines in revenues and profits than did hotels, as measured by RevPAR, in 2008 and 2009 and also are taking longer to recover. While the hotel industry began to improve in the second quarter of 2010, hotel spas did not show signs of a rebound until 2011. The good news is that spa revenues are expected to continue to grow and even outpace hotel RevPAR changes over the next few years as the economy improves and personal income levels begin to rise.

Because hotel spa services are often perceived as a luxury, the changes in hotel spa revenue since 2006 are not surprising. In the prosperous years of 2006 and 2007, the annual change in unit-level hotel spa revenue was comparable to the changes in RevPAR. However, concurrent with the economic recession, spa revenue declined at a greater pace than other hotel revenue sources in 2008 and 2009, and did not post a year-over-year increase in 2010 as was observed for RevPAR.

READ MORE HERE

Be Sociable, Share!
    Categories : Uncategorized

    Comments are closed.