Challenges Faced By The Spa And Resort Industry And Solutions

Economic Crisis in Spa and Resort Industry

Question:

Write about the Challenges in Spa and Resort Industry.

There are certain challenges which are faced by the spa and resort industry few of them are listed below. In this dynamic industry the challenges are right in front of the company. At times it happens that innovative strategies are adopted at once which might roll out or get redundant. The ability to anticipate the upcoming trend and to stay ahead of the edge is a tuff task. In this report our main focus would be on the challenges faced by spa and resort industry in today’s era. Every individual have high standard of living and are willing to use the facility provided by these sectors. But there exists various obstacles that violet the profitable market of the industry. Thus steps are undertaken to improve the quality of product and services. Maintaining the price of the services is the key concern so that more customers get indulged in the market.

One of the biggest challenges in the spa and resort industry is economic crisis, as the price of the services offered are very high which is not affordable by common man. The cost of spa and resort industries is dramatically increasing and one of the reasons behind this is high maintenance cost (Ayspa, 2018). There are customer who are willing to pay high bugs to afford luxuries services and in return they get a poor quality service. The reason behind the poor quality services is there is no marginally cut off price in the industry. Thus the customers are losing confidence to maintain this ways needed to be adopted to capture more customers. The growth of any industry directly depends on the number of customers involved; more number of customers means more profit. Promotions are offered on many sites so that customers can experiences the services and industry get a chance to grasp ne customers. The talent becomes another challenge especially when it comes to therapists (Gupta, et. al, 2015). Earlier unqualified entrepreneurs were managing the spa and the growth was comparatively slow. There are lot of eccentric resort and hotels which are located in remote areas and they face difficulty at time of recruiting therapists and training them involves a huge amount of cost (Kingsbury, 2016). Often at times it happens as if training has been provided, the cost has been incurred yet the employees are not able to deliver the quality services. This reduces the overall productivity of the spa and employees are not motivated to give their 100 per cent. This will also lead to reduction in number of customers as they will be disappointed and tend to give a negative feedback. At times the performance is acceptable but because of some earlier issues the customers tend to choose a particular person (Lo, Wu & Tsai, 2015). This in turn also leads to decline in the productivity of the particular employee.

Solution:  Having one to one conversations with the employees will give them a sense of belongingness and they will feel motivate to perform. The employees shall be trained from the scratch as if they have never worked in the spa before. Set fundamental targets for them. Make them work for incentives as it will keep them going on to achieve the organisation’s objectives. Further their individual objectives and goals will get an edge and this helps in creating a sense of competition among the co employees (Lee, Smith & Pan, 2016). Management should constantly appreciate the efforts of the employees to give them the feeling of being considered and taken care (Ahn & Back, 2018). Create a workplace where the open interaction and communication is possible. Employees shall be involved in decision making processes. Their ideas shall also be given the weightage. This way it develops a sense of commitment among employees. The relationship is built on threefold basis between the owner, customer and employee. One to one counselling can also be an effective option. This will help in determining the individual goals and they can figure out any variances or lack of performance. After analysis the necessary measures can be taken to fill the gaps in the performance.  Practical training shall be provided before the customers are attended (Denizci Guillet & Kucukusta, 2016). This will develop the confidence among the employees and chances of errors will reduce.

Employee Training: A Major Challenge

Spa and resort retail products are not getting sold  - To maintain a resort there are various things which need to be taken into consideration. Thus to preserve a good place for spa and fun various products are made available. Buying new products need expenses but from the research it was analysed that when clients visit the spa parlours they don’t buy any products from there. The reason is that service quality is becoming inconsistent and there is no control management system in spa (Radovic, 2015).  Staffs are not working properly because they are criticized for paying salaries. The reason is that in hospitality industry companies are gradually increasing finding and they are facing difficulty to attract and retain qualified candidates that well sell their products by attracting clients.

Solution- The solution to this problem involves first teaching the employees how to promote the services and products. As when someone visits the resort he/she has no mind-sets thus anyone can mould them by offering them good quality of services (Sandberg, et. al, 2016). Before selling the product it should be important that the seller should love the products itself.  Promoting all the good points of the product helps in grasping customer’s attention which gets followed by purchasing the product. Apart from that everyone visiting the resort or spa salon have a high standard of living thus plans should be designed to support the products and services. Thus to make sure that clients use the products of the resort a proper training should be given to staff. Additionally as the spa products are not getting sold  strategies are designed to provide them extra benefits like offering additional presents, a good thankful gesture or making efforts to keep them happy while increase the confidence of clients and will also increase the chance of re-visit (Kadieva, 2015). The solution to this problem somewhere depends on the staff who is selling the product, if qualifies sellers are kept they will sell products in a better way. Thus paying good wages to the staff should not be comprised as all staff at a spa or resort should know what they are required to recommend to the clients. The sale of products is directly dependent on the advice given to clients so that staff should sell the product in a way that it catches the customer’s interest. Other than sell could be increased by offering them the tools which would help them to sell the products. Also by offering additional incentives will motivate them to buy products. Encouraging customers by offering them with promotion gifts will help them to purchase products (Giritlioglu, Jones & Avcikurt, 2014). Gifts cards help in maintaining the consistency as they will get discounts on daily basis which would increase the sale of products. Other than just focusing on selling products it could be seen as fun task were you are offering the basic services additionally offering clients to buys some unique products.

Competition in the market- Apart from the effect of economic crises, resort and spa industry are grooming day by day. Many new projects related to spa and resort industry are getting established. Numbers of service providers are increasing and there is a high competition in the market. Everyone is offering special combo and discount offer to gather more customers. Thus it is a difficult task to grasp customers from the market. The spa and resort industry is extremely competitive but they are facing unique challenges as they attempt to engage more guests. This could be done by offering them relaxing experience that makes the resort different from the other challengers in the market. Thus it is necessary for them to design innovate methods to stand apart from competitors and attract the guests (Wani & Bukhari, 2017). The concern is that now a day’s resort includes all the facilities like spa, luxurious stay and many outdoor activities. That requires a good investment plus the staffs that can handle the guests well. Thus to stand different from the competitors all that matters is customers experience. The area in which resort is located often defines the number of customers it will get. The location where the resort is located is directly related to the cost of the resort.  Thus it is challenging to select a good geographical location for the resort and the cost is not that high (Sonal, 2018). Additionally, many resorts have now provided the experience of spa to beat the challengers in the market. 

Sales Problem in Spa and Resort Industry

Solution- The solution to beat the challengers in the market is first analysing the market, what are the services offered by different competitors. Finding out the reason how competitors are getting more customers and what are the special offers provided by them. After analysing the market area the portfolio needs to be designed that contains the facilities and amenities that would be offered to the customers (Tfaily, 2017). The services are designed of better quality or some new ideas are generated that may increase customer expectation. Apart from offering valuable services it is important to promote their services by advertising. Social media platform can be used in a best way to let the world know about the offers. Thus to make the resort or spa centre different from other it is important to select an entirely different geographical location. As the place where spa is situated drive the customer’s especially western market can be captured by the environment (Asmaa, et. al, 2014). Other than geographical area while setting the industry it is important to develop market spas in the area where there are real growth opportunities. The method should be developed in such a way that customers are captured by offering them interesting offers which are not available in the market (Alaluf, 2017). Customers can be grasped by providing them facilities at lower price initially, so that the industry gets long-time customers. Further to beat competitors annual visiting cards could be made for the customers so that they visit the spa saloon or resorts annually which would increase the clients. This industry should focus on quality rather than quantity.

Conclusion

In this report the entire focus was on the challenges faced by spa and resort industries. These industries are growing day by day and there are numerous challenges that need to be beaten in the market. Cost is main issue as to provide services of high quality with low price are difficult but many solutions have been discussed to grasp customer and increase the sale. Opening online stores can promote the products and make customers aware about the nee services. Lack of knowledge among staff in this industry is the reason for their failure. Thus it is necessary to provide proper training to these staff so that they can work well and capture more audience. The key concern for making profit among this industry is getting more audience and this could be done improving the quality of services through specialisation and an appropriate pricing is undertaken to achieve competitive advantage in the market. There are few emerging trends in the spa and resort industry like leveraging technology to improve customer’s experience, focus on wellness comforts, destination promotions, targeting guests through social media platforms and using high tech methodology to gain customers. These trends are used to make difference from other resort available in nearby areas Focusing of wellness of customers is very important as nowadays people look for ways to stay conformable and healthy. This is possible by using new innovations to get more customers and provide the, with satisfactory services. 

References                        

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Sonal. (2018). The Challenges of the Spa Industry. Retrieved from https://www.spa-balance.com/2012/01/24/desafios-para-el-sector-de-los-spas/.

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