How to increase your hotel guest capture rate in five simple steps
The guest capture rate is an important way to measure how well your spa business is performing. But what’s an acceptable guest capture rate? There’s no definitive answer. In some cases, 20% for a resort spa is acceptable whereas a 5-7% in an urban location is considered good. However, we’ve come across scenarios where urban spa capture rate ratio has been more than those of spas in resorts. Why? Because their spa managers follow these 5 simple steps:
1. Be agile. Hotel businesses change constantly and what works for one week or one season might not for the next. A spa manager must react quickly to hotel occupancy, MICE bookings and ensure they have therapists available to perform treatments during periods of sudden demand. Also, be aware that a busy hotel doesn’t necessarily mean a busy spa and vice versa. Spa demand is determined by myriad factors, including events scheduled at the hotel, spa promotions, guest demographic, time of the year, and even by the weather.
2. Be flexible. Your hotel marketing and sales team can make a huge difference to your guest capture rate, but you’ll need to get their attention. Be as flexible (and friendly!) as possible and you’ll soon see results. Even if you barely cover your costs on some promotions, you’ll have got their attention – and their team will be happier to help you out in the future. Consider whether you can be flexible in terms of your process, the number of treatments that you offer and the type of treatments you offer. The more angles you can offer the sales and marketing team, the easier it will be for them to fit you into their editorial calendar.
3. Cultivate good relationships with key department heads. Being on good terms with the Director of Rooms, Director of Food & Beverage and the Director of Sales and Marketing is an essential aspect of your job. This is particularly important because spas in most hotels only generate between 1 and 5% of total hotel revenue. You therefore need to build a strong support network so that the spa is fully integrated into the hotel.
4. Be selective. Not all hotel guests will be the right target market for your spa. In order to meet REVPAR, ADR and RGI targets, your Director of Revenue and Distribution needs to be creative in the hotel’s pricing strategy. This sometimes calls for a change in client mix, which in turn might impact your spa business; not all hotel guests will be the top spenders for your spa. For example, targeting guests in superior rooms may be a more effective strategy than targeting all guests.
5. GM is king! Be on good terms with your general manager. Without the support of your hotel general manager, you’ll struggle to increase your hotel guest capture rate, no matter how hard you try or how many initiatives you take. Why? Because your hotel general manager is the ultimate person responsible for the proper functioning of the hotel. They also have the power of decision when it comes to allocating a training budget for your spa team, deciding on products for a new promotion, or encouraging other departments to assist you in promoting your spa. If they know what kind of support you need, they will be better equipped to give you the support you need.