Dubai,
04 May, 2009: On the eve of the Arabian Travel Market, Ernst & Young announced
the introduction of the region's first monthly benchmarking initiative for spa
operations. The Spa Benchmark Survey Report tracks and compiles the performance
of Dubai's 5-star hotel spas on a monthly and year-to-date basis. The monthly
reports, which are free-of-cost to data contributors, will begin with January
through March 2009 data.
It appears that the popularity of
visiting spas has not diminished as consumers are increasingly looking for ways
to manage stress. This is validated by survey results, which indicate an increase
in the number of spa treatments booked by 7 per cent from January to March 2009.
However, consumers are becoming more price-sensitive as treatment revenue increased
only by 4 per cent over the same period.
The business mix of
spa guests appears to be shifting towards day spa visitors. Within beach hotels,
the year-to-date percentage split of spa treatments booked by hotel guests versus
non-hotel guests is 56 and 44 per cent. In city hotels, the year-to-date percentage
split of spa treatments booked by hotel guests versus non-hotel guest is 47 and
53 per cent. These percentages of spa treatments booked by hotel guests in both
types of hotels are down from 60% and above, as estimated by spa operators last
year. This trend could be a result of a decline in hotel occupancies along with
hotel guests tightening their belts due to lower travel budgets. It also indicates
a greater interest for spa visits among Dubai's resident population in response
to special packages offered by spas that target residents.
Paul
Arnold, Director, Transaction Advisory Services, Real Estate, Hospitality &
Leisure of Ernst & Young Middle East underlined the need for establishing
benchmarks within the spa sector. He said: There has been an absence of consistent
metrics to measure performance within the spa industry. To fill this void, we
have undertaken this new benchmark initiative. The data collected aims to give
spa operators and hotels a chance to review their operations objectively. It enables
operators to benchmark them against existing standards in Dubai. They will also
be able to better communicate their performance to industry stakeholders."
Nikita
Sarkar, spa specialist with the Ernst & Young Middle East Hospitality and
Leisure team states: An innovative, and as yet relatively unused metric covered
in the Spa Benchmark Report is the RevPATH or Revenue Per Available Treatment
Hour. This is conceptually similar to the RevPAR (Revenue per available room)
metric currently used by hotels. The measure allows for true comparison of operational
performance over different types of spas by presenting revenue generated over
a time period of 60 minutes."
The Ernst & Young Spa
Benchmark Survey Report tracks ten key metrics, designed to standardize operational
performance and reporting within the spa sector. Some of these metrics are in
use internally at spas, while some others are recommended due to their commonality
across different types of spas so as to allow benchmarking.
About Ernst
& Young Middle East
The Middle East practice of Ernst
& Young has been operating in the region since 1923. For over 80 years, we
have evolved to meet the legal and commercial developments of the region. Across
the Middle East, our 4,500 people are united across 18 offices and 13 Arab countries,
sharing the same values and an unwavering commitment to quality. We make a difference
by helping our people, our clients and our wider communities achieve their potential.
For
more information, please visit www.ey.com/me
About Ernst & Young Global
Ernst
& Young is a global leader in assurance, tax, transaction and advisory services.
Worldwide, our 135,000 people are united by our shared values and an unwavering
commitment to quality. We make a difference by helping our people, our clients
and our wider communities achieve their potential.
For more
information, please visit www.ey.com.
Ernst & Young refers to the global organization of member
firms of Ernst & Young Global Limited, each of which is a separate legal entity.
Ernst & Young Global Limited, a UK company limited by guarantee, does not
provide services to clients.
