Resort and Spa Management for Global Financial - myassignmenthelp

Question: Discuss about theResort and Spa Management for Global Financial Crisis. Answer: The need and quest for establishing spas and resorts as part of leisure industry have been on the rise in the 21st century. It is evident that there is a boom in the spa industry over the past decade with an increase in the revenues amounting to more than $40 billion. According to the recent reports from the International spa association, it has been said that there are more than 150 million spa goers globally. The large size of the market makes it one of the most important leisure segments. Ironically, the spa industry lacks a market leader (Yu, 2016). The appreciation of spa industry due to the wellness and healing by the consumers has made investors develop an interest in the sector making the industry grow by double digits yearly for the past ten years. It is of importance to state that spa industry provides comfort for many coupled with natural sceneries such as beaches and parks. Over the past few decades, the hotel and spa industry had witnessed and evidenced tough and challenging times. The challenges are diverse due to the complexities posed by the global markets (Yu, 2016). In the below discussion, some of the challenges that affect the hotel and spa industry are highlighted. Also, the content states how the problems affect consumers. Challenges facing spa and resort industry Global financial crisis The financial crisis that has been witnessed globally is something that has crippled the hotel and spa industry. The declining bargaining power by the consumers as a result of continues inflation makes the prices of goods and services expensive (Asiatech, 2011). The amount of disposable income has reduced something that has, made consumers conscious of their buying and spending habits. As a result of a decline in the disposable income among consumers, they have forgone luxuries such as holidays due to the unforeseeable future demands and the unpredictability of events. For those that are new in the market and industry of hospitality, they have been forced to close their premises due to the increase in the operating costs as little revenue trickle in yet the running costs due to many employees continue to be a nightmare for many(Asiatech, 2011). It has been witnessed that many companies have lost a lot of money and others are caught up in massive debts in trying to cope with financial crisis. Some spas and hotels are even offering their rooms at a low price than expected. In fact, the prices are ridiculous so to speak of, 80% of the deal something worrying to the business owners. On the other hand, it is a relief for the consumers as a result of the reduced prices and great offers and deals. For resorts that have operations and business units in other countries benefit the most. It happens that different countries have varying economic phases. In the case that one country is experiencing recession and the other country is experiencing boom then it means that a spa will benefit if it has its operations in a country having a boom. It is through globalization that firms can diversify and mitigate risks. Also, if a resort has several branches in other places, then in the case that some of the units are making continuous losses, then it would be substantial for the parent spa to close the units that are making permanent losses. Competition Before the onset of the financial crisis globally, the hotel industry was experiencing a boom. It was evident that hotels were being opened on a weekly basis across the globe as compared to the past 50 years. With the recent competition for a market domination in a small market has made the industry a risky affair (Brey, 2010). Some reports have indicated the presence of deals that are staggering in particular days in various hotel booking sites. The deals assume various shapes and forms where clients are offered one nit free after booking two nights and also being offered free breakfast. Such offers serve to attract and have more clients by improving their experience in various hotels and spa. However, the looming competition has forced some of the businesses out of industry due to the inability to satisfy the demands of the industry. If there is an industry that is compelling is the hospitality due to the changing needs and preferences across the world (Yu, 2016). Firms have to acc ommodate the trends that are emerging to remain relevant in the industry. The emerging trends ensure fierce competitions among firms as very few can provide and implement the changes locking some businesses out of the market. A good example is the online booking that came recently, and most hotels have adopted such a trend. Those hotels and spa without websites where their clients can book online are viewed as of poor quality regarding services and also the products they offer (Brey, 2010). On the other hand, most consumers view online services as fast and efficient limiting the need to move and inspect the premises. Competition has led to innovations such as booking of hotels is accompanied with a touring agency reducing the need for the client looking for a means of transport in the case they are tourists (Yu, 2016). Also, most websites have been designed in such a way that there is information on different packages offered by the hotel and spa, such information is handy for the consumers (saviny partners, 2011). Such websites are designed so as they inc rease the competitiveness of the resorts and hotels. As for competition, it is for the resorts to improve their services by ensuring that new products are invented to attract new customers and also retain the existing ones. It is evident that there are more costs while trying to implement and develop some services (Cohen and Bodeker, 2011). However, there more benefits after implementation and development phase. For any resort to remain and compete strategically, then analyzing and conducting research to understand the needs and changes of consumers preferences is an important aspect. Services offered It is as a result of competition that there are numerous products and services offered by hotels and spas. There are advancements in the type of services and also the amenities and facilities at the disposal of the hotels and spas. In the past, there were moments when the only thing that was offered by a hotel was just a bed and a table. A wardrobe was available on rare occasions. With the recent advancements, resorts and spas that are rated two star now offer Wi-Fi, a gym, and television (Yu, 2016). Competition has taken things to a higher level making it the responsibility of the hotels and spas to offer such facilities for their clients. The big challenge is that in future clients will demand more regarding facilities something that will be an extra expense to the spas and hotels (Cohen and Bodeker, 2011). A good illustration is the world class spas, golf courses; nightclubs are facilities that are offered as standard services in hotels and spas. In the coming years to come things will assume a new course as the demands and needs will change as per that time. It is important to take note of the services offered by various hotels and spas as they can either make a good reputation for the spa or a bad name. The strength of social media is so powerful that it can destroy a reputation about the spa by people giving reviews. Some businesses have seen few customers as a result of bad reviews by customers in the social media platforms such a facebook and twitter. When people find such blogs in facebook and twitter, they will believe such messages and in return avoid visiting such hotels and spas. On the other hand, positive reviews about a particular spa in a social media influence more clients to pay attention and visit such places that have been praised by other people. Social media is something that spas and hotels do not influence yet it can cause either damage or build a reputation of a hotel. In the global market, it would be important for a firm to be innovative in the services it offers to have a competitive edge over its competitors. It is through offering new products that satisfy the consumers that a resort will attract many customers. It is necessary that a spa should develop customized products to suit individual needs of their customers. Tailoring services to various customers ensure that each person has their tastes covered. Trends in resort and spa With the economic climate that keeps on changing, resorts and spas have to be ahead in if they are to reap benefits associated with customers service and attain revenues both in the short and long run (Kaufman, Lashley and Schreier, 2009). Achieving a good performance in the market depends on spas paying attention to the trends, developing spa menus that reveal consumer desires (Henkin, n.d.). Having unique geographical locations around the world has made it difficult to maintain a constant stream of revenues. A shift has been evidenced as consumers show more concern towards wellness and health a move that has driven consumer needs. Such services involve increasing the levels of comfort through having spa procedures with medication and also having treatments (Murphy, 2008). The medical and health industries will gain from such collaborations with the spas and resorts. According to a recent delegation in international spa summit, it was recorded that there were huge opportunities for the preventive health sector as there is room for future growth. More focus has been drawn on medical spas and luxury spas. Many stakeholders showed interest in working with the healthcare to a great extent. In the delegates conference, it was also analyzed that most of the profitable ventures included healthcare and insurance regulatory among many other things. The consumers of this generation are more conscious of health aspects and are also being price sensitive a move that will strengthen ties between the s pas and the health sector. It is clear that spas continue creating constant awareness in wellness and future hospitals will have spa offerings. Environmental concerns are becoming an issue as a more proactive approach is being taken by the consumers. A spa that is eco-friendly is something that is not likely to disappear (Pizam, n.d.). The use of wood that has been recycled, electricity powered by the wind and having recycling bins in strategic areas are issues that have been on the radar of investors of spa who are now more sensitive to the environment. The green initiatives are gaining momentum in the field of resorts and spas. Consumers will demand attention to a green environment as a green spa revolution is already in place to ensure that consumers remain alerted on the issue of a safer and a cleaner environment. Consumers are also on the look for stress management services (Yu, 2016). The menus from spas should keep this trend in their mind. Such distressing services include yoga, relaxation massages, and meditation programs are on the increase and demand for such services in future will increase. Such help alleviates stress responsible for diseases such as ulcers and arthritis among other maladies. Many spas are now offering self-awareness programs aiming to help consumers charge both spiritually and mentally. In conclusion, it is evident that many challenges are threatening the growth and the success of the resorts and spas. Issues such as financial crisis have left many crippled in this century; almost every part of the world is experiencing a crisis that affects the economy. Also, the changing needs of consumers tastes and preferences are something that spas have to adapt and accommodate the trends. The trends and changes in the modern business atmosphere are forcing many spas and resorts to change their outlook to attract consumers and preserve existing clients. An issue such as awareness of a green environment is an important aspect that shows that spas and resorts are being socially responsible as a move to work with the consumers (Yu, 2016). Consumers want a safer environment that is clean and more secure for future generations. All that being said it is evident that spas have a challenge of keeping up with modern trends and have to ensure they remain relevant. References Asiatech (2011). Cite a Website - Cite This For Me. [online] Avaya.com. Available at: https://www.avaya.com/en/documents/top-_4_challenges_facing_hospitality.pdf?t=0 [Accessed 17 Aug. 2017]. Brey, E. (2010). Developing a Better Understanding of Resort Management: An Inquiry into Industry Practices. Journal of Hospitality Marketing Management, 20(1), pp.79-102. Cohen, M. and Bodeker, G. (2011). Understanding the global spa industry. New York: Routledge. Henkin, G. (n.d.). Spa Trends Now and In the Future, by Gary Henkin. [online] Hotelexecutive.com. Available at: https://hotelexecutive.com/business_review/2022/spa-trends-now-and-in-the-future [Accessed 17 Aug. 2017]. Kaufman, T., Lashley, C. and Schreier, L. (2009). Timeshare management. Amsterdam: Elsevier/Butterworth-Heinemann. Murphy, P. (2008). The business of resort management. Amsterdam: Butterworth-Heinemann. Pizam, A. (n.d.). International encyclopedia of hospitality management. Salehudin, M., Prasad, D. and Osmond, P. (n.d.). CHALLENGES TO SUSTAINABLE RESORT AND HOTEL DEVELOPMENT IN MALAYSIA. [ebook] Available at: https://www.ijbts-journal.com/images/main_1366796758/0063-Muhamad.pdf [Accessed 17 Aug. 2017]. saviny partners (2011). Challenges of the Spa Market Savigny Partners. [online] Savignypartners.com. Available at: https://savignypartners.com/2011/06/challenges-of-the-spa-market/ [Accessed 17 Aug. 2017]. Yu, L. (2016). The international hospitality business. New York: Routledge.