The wellness sector is one of the great trend explosions of our time.
In a survey of roughly 7,500 consumers in six countries, business advisory McKinsey & Co. reported that 79% of respondents said they believed that wellness is important and 42% considered it a top priority.
The consultancy estimated the global wellness market to be worth more than $1.5 trillion, with annual growth of 5% to 10%.
Within this, hotels have leapt to take their share.
The latest study from RLA Global found that, for 2021, average total revenue per available room, or TRevPAR, of major wellness hotels was down by 35% against 2019. However, major wellness offerings generated between 126% and 204% more in total revenue per available room on average compared to hotels with minor or no wellness facilities.
Hotels with major wellness facilities outperformed during the recovery but also proved to be more defensive during the downturn.
So far, so not news. We see wellness resorts — wonderful, restful, exotic places — popping up every other week.
The $900 million investment into Aman Group last year by Cain International and Saudi Arabia’s Public Investment Fund was testament to this.
It is thrilling to be part of a sector where there is such inspiration and innovation.
But while wellness has its place, it is a place that is very much of its own, very much siloed.
And we wouldn’t be good asset managers if we didn’t look at every opportunity to create opportunity, to sweat that asset, to work the margins.
We believe that wellness creates an opportunity for all hotels, not just those with the room for a large spa facility.
Our belief is already starting to play out, most recently at Hilton, where the company has extended its agreement with Peloton Bikes to include hotels in Germany, United Kingdom and Canada.
“We know that wellness is a top priority for travelers around the world and many want to take their routines with them while traveling,” said Amanda Al-Masri, Hilton’s vice president of wellness.
Al-Masri echoed Hilton’s 2023 trend report that found for 47% of travelers, wellness and access to fitness center or amenities will be front of mind this year.
Wellness is part of our lives, and there is no greater need for it than for the road warrior, who too often finds themselves lying on a bed with a laptop and a tepid Club sandwich for company.
Gym equipment is expensive, and in city-center hotels a full gym takes up space that could be more profitably occupied. Quite often it is considered as a cost center rather than as a profit center. And to make it work, you must be rigorous in ensuring there is a proper marketing plan — to include the local community — with proper treatments, proper membership and additional weekend revenue opportunities.
One of the main barriers is a lack of innovation.
Look at food and beverage, which we recommend changing every eight years. As a result of the regular refresh, we see fantastic new food and beverage in the sector. In contrast, there is very little change in the general wellness offerings at hotels. We are seeing a move to localize food, art and even the architecture of a building, but you can stay in a hotel in New York and the massage will be Thai.
Hotels need to think about how to bring wellness into every part of the guest’s stay, to ensure they leave feeling truly well and cared for, whether they went to the gym or not. We talk a lot in the hotel sector about how you need to be there for the guest before, during and after the stay. Well, why not teach them mindfulness techniques to help mitigate the stress of that canceled flight?
For too long wellness has ignored the corporate traveler, that traveler we are all trying to attract.
They’re tired and jet-lagged, and they need to be at peak performance for the meeting they’ve traveled for. Why not team up a clinic and offer a vitamin drip and melatonin? Even concentrated doses of relaxation, hypnotherapy or guided meditation. They need to be welcomed and then helped into peak performance.
By applying special packages for those travelers, hotels can differentiate themselves versus the competition and increase the negotiated segment. This can be a great tool for the marketing department to create publicity and increase business.
Hotels are eager to talk about their expensive beds, but they stop at the mattress and don’t get into the matter of the sleep you’re hopefully giving to them.
Science has progressed in recent years. Matthew Walker, professor of neuroscience and psychology at University of California Berkeley, has shown us in his book “Why We Sleep: The New Science of Sleep and Dreams” that temperatures need to be lower at night to help us sleep.
We are learning about the value of white noise, as well as blue and green noise, and even military techniques to help you go to sleep in two minutes. And when you wake up, daylight clocks and natural light make for a better start to your day.
Hotel owners have spent a great deal of money over the years on the latest beds, but how many of the brands have gone to a sleep scientist to ask for help?
And a natural light alarm clock represents a much cheaper investment than a whole new bed.
Wellness feels like just another trend for the sector, but unlike some trends, this one is for everyone. Think about how your hotel can embrace it now.
Alex Sogno is CEO, Global Asset Solutions. Daniel Fryer is a psychologist and author.
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