More opportunity for increased revenue
Providing customers with experiences that exceed their expectations significantly improves the operator’s ability to attract and retain customers.
These experiences can be created in a casino resort environment in spa, retail, nightlife and entertainment in both destination and regional gaming markets.
Customers who provide feedback tend to be inclined to offer both positive and constructive feedback that focuses much on their non-gaming experiences.
Incorporating non-gaming amenities as a complement to the gaming experience provides customers a more complete and hospitality-driven visit.
These concepts are not new. Carefully planned and well-executed non-gaming amenities provide operators with significant opportunities to increase revenue, profit, and ultimately, customer loyalty.
The greatest examples of this approach are evident in Las Vegas.
Today, the largest resorts on the Las Vegas Strip generate less than 40 percent of their revenue from gaming. Outside of Las Vegas, casinos, resort casinos and integrated resorts in multiple jurisdictions have realized the tremendous potential of their non-gaming amenities.
Some operators have changed their perspectives and offer additional and unique non-gaming amenities at their properties.
As a result, many of these operators have realized an uptick in revenue and profit.
Purchasing and Partying An integrated resort that includes gaming is the purest form of 21-plus entertainment.
It has all of the necessary ingredients for fun. We should think twice before we give the ingredients to that successful recipe away solely as a “comp” for a “high roller.”
Spas: Essential, Nice To Have or Run As Fast As You Can? The short answer is, it depends.
As a practical matter, we believe spas add value to hotels when certain criteria are met.
Purchasing and Partying In a regional market, we recommend a minimum of 250 guest rooms, average occupancy of at least 85 percent, and a market opportunity to attract customers in the 30-45 age group in addition to the 45-and-up age group. B
y way of example, a 250-room hotel that achieves an average occupancy of 85 percent with an average of 1.75 guests per room could generate between $600,000 and $800,000 in total annual spa revenue.
A competently self-operated spa should generate a profit margin in the 15 percent25 percent range.
(It is interesting to note that one of the fastest growing consumer segments in the spa industry is men.)
Regional operators may want to consider acquiring a franchise spa operation, which provides the operator with a good ownership model and the ability to have a proven brand become part of the hotel’s amenity offerings.
Elements Massage is a fresh-looking brand offering a relatively simple business model for spa operators and a predictable and quality experience for the guest.
Training is provided for areas like marketing, finance, operations, and client and talent acquisition: all comprised of time-tested and proven methodologies. Serasana, an alternative spa franchise operation, offers massage, yoga, tea service and acupuncture treatments.
Serasana boasts a broad customer demographic that is recession-resistant, online and mobile scheduling applications, and established social media platforms.
Owning a franchise spa operation may be an affordable and quick-to-market approach.
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