The 40-Point Hotel Spa Health Check: Is Your Spa Earning What It Should?
A hotel spa health check is a set of 40 yes-or-no questions across eight areas: financials, bookings and pricing, guest uptake, the menu, people, technology, the facility and the operating model. Answer each from the last 12 months of data, and treat every no as a candidate for your action plan. Start with financials and pricing.
Most hotel spas that under-perform don't have one big problem. They have fifteen small ones nobody has written down. This checklist is the one our operators use on a first site visit, adapted for Indian hotels. Answer each question yes or no using the last 12 months of data. Every no is a candidate for your action plan.
Are your spa financials clear?
Financials. (1) Does the spa P&L show revenue by line: treatments, retail, memberships, day passes and salon? (2) Is labour split into wages, benefits, commission and contract staff? (3) Do you know the spa's departmental profit margin? (4) Is total labour at or below 40% of spa revenue? (5) Is retail at least 10% of treatment revenue?
Are bookings and pricing managed?
Bookings and pricing. (6) Do you track how full the treatment rooms are by hour and day of week? (7) Do you know your revenue per therapist hour, and is it above ₹1,100? (8) Are therapists busy for at least 60% of their shift? (9) Is at least one pricing rule live, such as a peak-time premium or an off-peak offer? (10) Are short, low-value treatments switched off at peak times?
Are in-house guests finding the spa?
Guest uptake. (11) Do you measure the share of in-house guests who use the spa every week? (12) Can guests book the spa on your website and booking engine? (13) Do guests receive a pre-arrival message with bookable slots? (14) Are front desk, concierge and restaurant staff trained and rewarded for spa referrals? (15) Do you know what share of spa revenue comes from locals?
Does the menu earn its place?
The menu. (16) Does the core menu fit on one page? (17) Does every treatment earn its place on revenue and margin? (18) Is there at least one revenue line that doesn't need a therapist, such as a thermal suite, recovery equipment or memberships? (19) Do you offer clear programmes for sleep, stress or recovery? (20) Are menu claims reviewed so they promise comfort and experience, not cures?
Are your people looked after?
People. (21) Do you know therapist attrition over the last 12 months? (22) Is there a written career ladder with pay steps tied to certification? (23) Does commission cover retail and add-ons? (24) Is the training calendar current? (25) Are daily treatment hours capped to protect therapists' health?
Does the technology work together?
Technology. (26) Is the spa system linked to the hotel's property management system, so treatments can be charged to the room? (27) Can guests book online at any hour, on their phone? (28) Is one guest profile shared across spa, rooms and restaurants? (29) Is health information collected with explicit consent, as India's Digital Personal Data Protection Act requires? (30) Do you receive a monthly spa report without having to ask for it?
Is the facility working for you?
The facility. (31) Can guests see the spa, or clear signs to it, on their way through the hotel? (32) Are spa products and menus in guest rooms? (33) Are wet areas sized to how much they are actually used? (34) Are the sauna and steam room switched on by demand or schedule, rather than all day? (35) Are spa energy and water metered separately?
Does the operating model protect you?
Operating model. (36) If a third party runs or leases the spa, does the contract include performance targets? (37) Does it include quality audits? (38) Does it give the hotel step-in and termination rights? (39) Do the owner and asset manager receive a monthly spa KPI pack? (40) Has the operating model been reviewed against real data in the last three years?
What does your score mean?
In our experience, a spa that scores fewer than 25 yes answers is usually leaving at least a fifth of its potential revenue on the table. The good news is that the first two sections, financials and pricing, cost almost nothing to fix and tend to pay back within a quarter.
Frequently asked questions
How do you audit a hotel spa's performance?
Walk through a checklist of yes-or-no questions using the last 12 months of data, covering financials, pricing, guest uptake, the menu, people, technology, the facility and the operating model.
Which part of a spa should be fixed first?
Start with financials and pricing, because those two sections cost little to fix.
What should a spa operator contract include?
It should include performance targets, quality audits, step-in and termination rights for the hotel, and a monthly KPI pack for the owner and asset manager.
Sangeeta Sharma founded Sansha Spas, India's first spa management company, in 1994 and is its Managing Director. Sansha designs, launches and operates spas for luxury and heritage hotels, with 80+ hotel partners across India. LinkedIn
Want this applied to your property?
Sansha Spas runs spa P&L, menu engineering and training for 80+ luxury hotels across India. Book a 30-minute working call with an operator.
Talk to an Expert