How Do We Segment Luxury Spa Customers?
May. 5, 2023
KPIs or Key Performance Indicators, help spa management track their performance, identify areas for improvement and make data-driven decisions to enhance guest satisfaction and financial success. Spa KPIs are represented by a statistic or metric that are key to measuring the performance of your spa assessed against internal targets, external competition, industry benchmarks and as part of the overall revenue plan of the hotel, where applicable. Some KPIs will be more relevant to managers than others, depending on your spa business model (hotel, destination spa, resort, day spa etc.) The specific KPIs a manager chooses will depend on the spa’s objectives, services, and target market.
Here are a few of the most universally applied KPIs within the spa industry.
Revenue per Square Ft
A familiar KPI in the retail industry, this measurement zones in on the design and utilisation of every part of the spa to ensure it is functioning to deliver or contribute to the spa’s overall revenue generation strategy. This incorporates the whole floor plan for the spa, not just the treatment and retail spaces.
Calculation: Total Spa Revenue / Total Size of the Spa (in ft2 or fm2)
Revenue per Available Treatment Room (RevPAR)
This metric measures the revenue generated per available treatment room. It helps evaluate the efficiency and profitability of your spa operations. It provides an overall measure of the spa’s revenue-generating ability and allows for comparison with other properties.
Calculation: Total spa revenue / Number of available treatment rooms
Average Treatment Rate
This KPI measures the average price charged for spa treatments. It provides insights into your spa service pricing strategy and the value customers perceive from your services.
Calculation: Total treatment revenue / Number of treatments performed
Treatment Capture Rate
This KPI calculates how many of the guests who stayed in the hotel, booked into the spa for a treatment. It helps gauge how relevant your spa is to the hotel’s revenue.
Calculation: Total Spa Guests / Total Hotel Guests (within a given time period)
Occupancy Rate
Similar to hotel occupancy rate, this KPI measures the percentage of time that the treatment rooms are occupied. It helps assess the utilisation of spa facilities.
Calculation: (Number of treatments performed / Number of available treatment slots) x 100
Repeat Guest Rate
This metric calculates the percentage of guests who have visited the spa more than once. It reflects customer loyalty and satisfaction.
Calculation: (Number of repeat guests / Total number of guests) x 100
Retail Conversion Rate
If the spa offers retail products, this KPI measures the percentage of spa guests who make a purchase. It indicates the effectiveness of the spa retail sales strategy and how relevant it was to your guests.
Calculation: (Number of retail sales / Number of spa guests) x 100
Employee Utilisation
This KPI assesses the productivity of the spa staff by measuring the percentage of time they spend providing treatments or engaged in revenue-generating activities.
Calculation: (Total treatment hours / Total available hours) x 100
Customer Satisfaction Score (CSAT)
This metric gauges customer satisfaction and loyalty by collecting feedback through surveys or rating systems. It provides insights into the spa’s performance from the customer’s perspective.
The above KPIs are just some of the more common measurements that spa managers consider. It is important to regularly track and analyse these metrics to identify areas for improvement and make data-driven decisions to optimise spa operations.
