In today's AI-crazed software world, the term "optimization" means making strategic choices and allocating resources wisely among competing priorities.
In the hospitality sector, where numerous factors vie for attention and investment, selecting the right key performance indicators becomes paramount for achieving unified goals.
Many hoteliers are adding wellness elements to their businesses, but which KPIs should they prioritize amid so many operational complexities? Here, business intelligence and machine learning becomes instrumental in navigating this complexity, especially when hotels must now look for relationships among profit centers that may have competing internal goals such as rooms, wellness, food and beverage, and events.
In preparation for a keynote Q&A at the Forum HOTel&SPA in Paris on May 30 between Adam Mogelonsky — one half of the writing team here — and Hans-Peter Veit, Director of Spa & Recreation at Appenzeller Huus Gonten in Switzerland, both participants had a lengthy discussion on why length of stay should be the primary KPI that hotels can evaluate to show how wellness capital investments can improve overall business growth.
A Spa Career Defined by Excellence
To understand why length of stay takes precedence over other metrics, it's essential to appreciate Veit's illustrious career in luxury hospitality and how it has shaped his perspective on property growth.
Veit's journey began as a personal trainer at Brenners Park-Hotel & Spa, a renowned wellness-focused property in Baden-Baden, Germany. Over the course of 17 years, he transitioned to spa management, eventually assuming leadership roles at prestigious properties within the Oetker Collection and other luxury brands. His tenure at these destinations, known for their impeccable service and loyal clientele, provided invaluable insights into the operational intricacies of luxury hotel spas.
Observations from Luxury Hospitality
These properties epitomize excellence in destination spa experiences, where personalized service and attention to detail are paramount. Veit underscores the importance of employee retention in delivering exceptional service, emphasizing the role of a cohesive team in fostering guest loyalty and driving revenue growth.
Veit's experience highlights the delicate balance between short-term revenue maximization and long-term guest satisfaction. By prioritizing service quality over immediate financial gains, hotels can cultivate enduring relationships with guests, leading to longer length of stay, increased ancillary spending and greater overall revenue.
Guiding a Resort Development
Veit's current role involves overseeing a multimillion-dollar expansion project at Appenzeller Huus Gonten, transforming the property into a premier alpine spa village. The development includes hotel guestrooms, branded residences and state-of-the-art wellness facilities designed to offer guests a quintessentially Swiss experience.
Despite the substantial investment in spa infrastructure, Veit recognizes that the ultimate goal is to drive room reservations and increase length of stay. He acknowledges the interconnectivity of hotel and spa operations, emphasizing the importance of aligning strategies to deliver a seamless guest experience.
The Future of Wellness Tourism
As hotels strive to differentiate themselves in a competitive market, Veit advocates for a holistic approach to guest satisfaction, grounded in sincerity and transparency. By prioritizing length of stay as a unifying KPI, hotels can align their efforts to meet guest expectations and build lasting brand loyalty.
In conclusion, Veit's insights underscore the importance of strategic alignment and collaborative decision-making in achieving long-term business success. By embracing length of stay as a guiding metric, hotels can optimize guest experiences, drive revenue growth and position themselves as leaders in the evolving landscape of wellness tourism.
Adam and Larry Mogelonsky are partners of Hotel Mogel Consulting Ltd., a Toronto-based consulting practice. Larry focuses on asset management, sales and operations while Adam specializes in hotel technology and marketing.
The opinions expressed in this column do not necessarily reflect the opinions of Hotel News Now or CoStar Group and its affiliated companies. Bloggers published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to contact an editor with any questions or concern.