Different Leisure Facilities of Hotels - Case Study Example

Abstract Increased profits remains an issue in service market the objective of this essay is to identify the areas in leisure facilities which are utilized to generate revenues. The context of essay is hotel industry leisure facilities which adds value to business, give it a competitive advantage and establish standard and credibility. Introduction Stress is no stranger to life today, but the business travelers are dealing with it by moving from conference hall to a spa in hotel. “Some people might say it’s a fad, but I think it’s a result of the lifestyle consequences, “said Raoul Sudre, co-president and c.o.o. of Aspen Spa Management. “The No.1 killer in Western society is stress. “One of the main reasons of increasing leisure facilities in hotel is, due to shortage of time, people combine their business and leisure trips. Hoteliers realize that it is one of the biggest revenue generators. According to the small luxury hotels survey of the world finds that people enjoy leisure facilities irrespective of their age and gender. It indicated that not only women take advantage of leisure facilities but middle-aged executives spend about $500 for spa service during a 48-hour stay. So, need of leisure activities in hotel are evolving with every passing day. Productivity of the Leisure business Basically the need for accommodation far from home generated the idea of hotel and comfort levels. With growing specialization and increased sophistication, hotels became firmly established not only as centers of commercial hospitality for travelers, but often also as important centers for their communities (Medlik & Ingram 2000). Leisure facilities provided in hotels vary and can include; Health and beauty Gymnasium Beauty Therapy Yoga/Aerobics studios Hot/Cold spa pools Sun bed Sauna Steam rooms Jacuzzi Number of hotels provides beauty and pampering treatments to indulge you during hectic work schedules. Sports Squash courts Racquetball courts Water aerobics Circuit classes Golf course Holiday and caravan parks Local clubs Kids clubs/yard From color and aroma therapy, health foods; immune booster, organic and localized special foods/products to remedy bars, hotels provide supreme indoor and outdoor health and leisure facilities, with something for everyone in the family. Today the customer is more aware about price and quality. They value real things and are conscious about brand and authenticity. This behavior gives rise to higher expectations for quality, personalization and credibility from the leisure services. Hotels claim to serve beyond expectation which attract the luxury customers aiming to experience value for their money, thus, increasing the hotel profits on every service taken. It also helps in spreading the word to potential customers in future and enhances trust. Profit generation Many hotels provide leisure facilities to attract and sustain a standard for their customers. Price for using these facilities is included in the accommodation price; whether you use it or not, you have to pay for them. Revenue generation is possible with the coordination of both leisure staff and leader; by keeping track marketing, management, pricing and distribution. These facilities are provided because of their contribution to the core business. The hotel may not be considered by meeting planners and leisure guests if it lacks leisure facility. Hospitality operators need to be committed to marketing and integrating these facilities into the as it is not only profitable but also an asset to the business. Spa treatments and new concepts like hybrid spa is a tool to maximize profit. It had economic potential because there is a focus on yield management techniques through market diversification. It broadens the appeal for overall clientele and maximum utilization of resources. In hotel industry spas attracts a variety of markets in order to maximize its appeal, profitability and yield management potential. Though, “Nowadays with public companies and asset managers, the whole economic viability of the spa is absolutely critical,” Singer says. Leisure facilities are suppose to be strong revenue generators as they have gradually evolve from niceties and comfort provision to serious business. Hotels work extensively to make sure that they get profit from the investments made in leisure facilities. Marketing the leisure facilities In today’s challenging environment maintaining control over cost is the only key to drive profits. It is essential to clearly define hotel’s unique selling points (USP) to the target market and competitors as well. Establishing competitive advantage Leisure facilities are used as competitive advantage to differentiate themselves from others in the market. It is used to tell a story or project a theme about the real concept and soul of comfort provided. Innovation Subtle renovation or reinventing ideas prove to be great revenue generator. For example, Four Season played a trick to attract loyal customers to spa at Four Season Chicago. It underwent a major renovation to quadruple its spa space and utilized its name to offer tailored treatments wrapped around the philosophy of Four Season, according to Spa Manager Tiffany Craig. A city centre spa that attracts many local clients, in this way such subtle reinvention proved to be a great profit driver. It helps in getting different types of customers and to anticipate interesting market opportunities. Distinguishing features Innovative feature design, treatments and products particular to the region is a big attraction for the leisure and luxury customers. For example, Indian hotels provide special yoga classes and branded herbal treatments; from exercise to positive energy flow techniques for cure and pampering oneself. Asian, Himalayan, Thai, Balinese and now CHI and Sasura theme spa are the differentiated concepts driving choices customers make. Spa takes a retail approach to provide short and classic treatments as well to cater more and more customers depending on the time and money they invest. For example, a conference attendee who doesn’t have hours to pamper him/herself will take a 20 to30 minutes relaxing treatment. Trained staff Properly trained leisure staff is a big asset to hotel. After making investment in the leisure facilities, it’s all about that staff that takes care of the investment and ensure the investment must come alive and generates revenue. Friendly and caring staff maintains a balance in providing intimacy and professionalism which accelerates the process of getting more money in. Highly trained and courteous staff drives revenue like anything. Comfortable environment put customers at ease and enhanced relationship make the clientele loyal, and help in spreading the word. Training, treatment development and innovation, management aspects play a major role in getting the big share in saturated market. Outsourcing Leisure staff For luxury customer vacation and business trips are more than just usual trips. They expect an unforgettable and unique experience. To ensure consistent delivery and quality maintenance hotels prefer to have their own employees as leisure providers. In addition to that cross-train therapist and multifunctional rooms not only cut the cost but also more client satisfaction. “At the end of the day, it all comes back to consistency of service.” Harmsworth says. Non-labors ways Booking time rather than treatments is also another thing to facilitate customers. Retail spa cuisine and water therapies like sauna and plunge pool are non-labor ways to generate revenue. Vision of leisure business Businesses continuously identify and influence the needs of customers in order to maximize their profits. They strategize and take action accordingly: Set goals considering target market Planning/controlling Parenting/networking Workforce management Communication clarity Performance management Setting and achieving consistent standards “It’s just a feeling amongst ourselves that, if we can get the standards and the quality we want, then the guests will be happy and want to come back, and the guest comments will be very good”(Peter Smith.2003). Factors affecting Revenues UK chain hotels recorded an overall drop in occupancy and profit in the first quarter of 2008, according to the latest HotStats survey by TRI Hospitality Consulting. The sample of 520 properitiesis dominated by business hotels and the performance data was affected by Easter arriving in March this year compared to April in 2007(UK’s Q: 1 Early Easter Contributes To Softness, 2008).War, hurricanes, terrorism and other factors also affect the business. “Some chain hoteliers enjoy an increase in leisure demand during Easter; it tends not to compensate for the losses in rate and volume fro the corporate market, “said Jonathan Langston, managing director, TRI Hospitality Consulting. In this scenario hotels prefer to invest in long term; training and retention of staff that is competent and vigilant about ensuring standards and high quality. It is said that to stay more competitive one had to make leisure staff training his top priority. To cope with the difficult times, hotels explore new local and regional markets. Hotels come up with creative ways to drive profits; special events, matches in local clubs, literary brunches with famous authors, radio programs and partnerships with local arts community. UK Rocco Forte Hotels introduced a new leisure package which encourages people to dress down and stay in, by launching pajama party. It is targeted for the independent women who want to enjoy with their girlfriends and want to have the best luxury. It is certainly good for earning from locals as normally a trip involves a short-haul destination for one or two nights. It includes a selection of “chick flick” movies, wine, champagne, gourmet, and TV shows with buffet style selection. In addition spa therapists will visit their suits personally for short treatments. Conclusion Leisure industry has become the most important part of the hotel business. It generates profits irrespective of the down season. They generate maximum profits by utilizing the resources for long term objectives. Leisure facilities not only generate revenue but also earn credibility and loyalty of the existing and potential customers. References Hotels magazine. (2008) Hotels The magazine of the worldwide hotel industry [Internet].Reed Business Information. Available from: http://www.hotelsmag.com/article/CA6484871.html?q=how+to+gain+profit+by+leisure+industry[Accessed 3 August 2008]. John, T 1999, The Economics of Leisure and Tourism, 2nd edn, Elsevier, Rochester. Staff, 2004, Managing The Recovery, Hotels Magazine. Available from: http://www.hotelsmag.com/article/CA6484871.html?q=how+to+gain+profit+by+leisure+industry[Accessed 3 August 2008]. Medlik, S & Hadyn, I 2000, The Business of hotels, 4th edn, Butterworth-Heinemann, Norfolk. Onofre, M 2006, The Growth Strategies of Hotel Chains: Best Business Practices by Leading Companies, Haworth, N.Y. Read More