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Hotel spa recovery hinges on vaccinations, consumer confidence and pent-up demand
By Megan Whitby 07 Apr 2021
Freitag believes vaccinations will be crucial for spas’ recovery considering they’re high-contact environments
According to Jan Freitag, senior VP at Smith Travel Research (STR), the industry can expect to see a pick-up in the luxury hospitality sector, including hotel spas, in a matter of months.

STR has been tracking the state of US hotels’ revenue per available room (RevPAR) alongside the proportion of the population that’s been vaccinated.

“It’s too early to make statements about more vaccinations and more people travelling because those who are already vaccinated – like the elderly or high-risk population – are less likely to be travelling,” Freitag tells Spa Business.

“However, there will be a relationship here very soon, especially as you get into the second half of the year, because vaccinations will have rolled out and this will give people the confidence to travel.”

Freitag believes vaccinations will be crucial for spas’ recovery considering they’re high-contact environments.

He also says that government approaches to lockdown and virus re-emergence will matter immensely to global hospitality recovery, as regions with stricter controls and more rapid responses have seen a much more promising return to business – for example, in the Asia Pacific region.

He says: “People have used the term ‘K-shaped recovery’ for the US, meaning people at the upper end of the consumer market have saved money over the last year, versus the downside of the K – those who’ve lost their jobs, are less financially stable and will be unlikely to travel.”

Freitag believes the upper end of the market will do well towards the end of Q2 and into Q3 2021.

“Plus, once corporate demand returns in Q4 and into 2022, full-service hotels that traditionally have offered spas should see very healthy demand,” he adds.

Some enthusiastic onlookers have gone as far as saying we’re on the cusp of the second ‘roaring 20s’, with hopes the economy will boom in the wake of the pandemic, as consumers splurge money they’ve saved during lockdowns.

STR reported that as of 20 February 2021 US hotel occupancy had reached 48 per cent and was on an upward trajectory, compared to its lowest point in early April 2020 where occupancy hit 22 per cent.

Freitag anticipates interest in hotel spas could be on the up because of the enhanced global focus on wellbeing.

“It’s been a rough time and we know self-care needs to be top of the agenda,” he says, “this will provide a prime opportunity and drive demand for all spas, because they epitomise what self-care stands for.”

To read the whole interview, head to the latest issue of Spa Business magazine.


News
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21 Apr 2021
Located on an ancient hilltop in a private eight-hectare park in Italy, Palazzo Fiuggi Wellness Medical Retreat will open in May 2021. The new concept is the vision of Lorenzo Giannuzzi, Palazzo Fiuggi founder and ... More
21 Apr 2021
The Sustainable Spa Association (SSA) has partnered with sustainability specialist Stephanie Hodgson from MeettheFiveR’s to help global spas understand the importance of a circular economy. The #SpaWasteNotChallenge campaign brief focuses on helping spas find a ... More
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A new report by McKinsey & Company reveals insights into shifting consumer attitudes and behaviour towards wellness across the globe. The Future of Wellness Survey surveyed 7,500 consumers in Brazil, China, Germany, the US and ... More
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Holistic medical wellness resort The Farm at San Benito has launched new retreats at its tropical eco-retreat in the Philippines to target pain and mental health concerns. Situated amongst 48 hectares of lush green jungle ... More
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In August 2021, an authentic Middle Eastern retreat named Zoya Wellbeing & Health Resort Zoya at Al Zorah ​will open in Ajman, UAE, developed and operated by Premedion ; an international spa consultancy and management ... More
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Relais & Chateaux's Summer Lodge Country House Hotel ​in Dorset, England, has launched an insightful masterclass to inspire guests about the benefits of fermentation. Fermentation describes the transformative action of microorganisms on other molecules and ... More
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The International Spa Association (ISPA) has named 12 winners of the 2021 ISPA Innovate Awards. This year’s awards highlighted solutions and innovations implemented specifically in response to the COVID-19 pandemic in three categories: business practices, ... More
     
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NEWS
Hotel spa recovery hinges on vaccinations, consumer confidence and pent-up demand
POSTED 07 Apr 2021 . BY Megan Whitby
Freitag believes vaccinations will be crucial for spas’ recovery considering they’re high-contact environments Credit: Shuttertsock/Prostock-studio
It’s been a rough time and we know self-care needs to be top of the agenda
– Jan Freitag
According to Jan Freitag, senior VP at Smith Travel Research (STR), the industry can expect to see a pick-up in the luxury hospitality sector, including hotel spas, in a matter of months.

STR has been tracking the state of US hotels’ revenue per available room (RevPAR) alongside the proportion of the population that’s been vaccinated.

“It’s too early to make statements about more vaccinations and more people travelling because those who are already vaccinated – like the elderly or high-risk population – are less likely to be travelling,” Freitag tells Spa Business.

“However, there will be a relationship here very soon, especially as you get into the second half of the year, because vaccinations will have rolled out and this will give people the confidence to travel.”

Freitag believes vaccinations will be crucial for spas’ recovery considering they’re high-contact environments.

He also says that government approaches to lockdown and virus re-emergence will matter immensely to global hospitality recovery, as regions with stricter controls and more rapid responses have seen a much more promising return to business – for example, in the Asia Pacific region.

He says: “People have used the term ‘K-shaped recovery’ for the US, meaning people at the upper end of the consumer market have saved money over the last year, versus the downside of the K – those who’ve lost their jobs, are less financially stable and will be unlikely to travel.”

Freitag believes the upper end of the market will do well towards the end of Q2 and into Q3 2021.

“Plus, once corporate demand returns in Q4 and into 2022, full-service hotels that traditionally have offered spas should see very healthy demand,” he adds.

Some enthusiastic onlookers have gone as far as saying we’re on the cusp of the second ‘roaring 20s’, with hopes the economy will boom in the wake of the pandemic, as consumers splurge money they’ve saved during lockdowns.

STR reported that as of 20 February 2021 US hotel occupancy had reached 48 per cent and was on an upward trajectory, compared to its lowest point in early April 2020 where occupancy hit 22 per cent.

Freitag anticipates interest in hotel spas could be on the up because of the enhanced global focus on wellbeing.

“It’s been a rough time and we know self-care needs to be top of the agenda,” he says, “this will provide a prime opportunity and drive demand for all spas, because they epitomise what self-care stands for.”

To read the whole interview, head to the latest issue of Spa Business magazine.
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Vast medi-wellness retreat to open in leafy Italian countryside backed by Forte Village CEO
Located on an ancient hilltop in a private eight-hectare park in Italy, Palazzo Fiuggi Wellness Medical Retreat will open in May 2021.
SSA launches #SpaWasteNotChallenge to inspire global spa teams to embrace sustainability
The Sustainable Spa Association (SSA) has partnered with sustainability specialist Stephanie Hodgson from MeettheFiveR’s to help global spas understand the importance of a circular economy.
The future of wellness: New report investigates changing consumer attitudes and behaviour in wellness market
A new report by McKinsey & Company reveals insights into shifting consumer attitudes and behaviour towards wellness across the globe.
The Farm at San Benito curates mental health and pain management programmes
Holistic medical wellness resort The Farm at San Benito has launched new retreats at its tropical eco-retreat in the Philippines to target pain and mental health concerns.
Therme Group invests in experiential art company Superblue
Global wellbeing organisation Therme Group has become a strategic investor in experiental art company Superblue.
Premedion to open integrative health and wellbeing retreat in Middle Eastern wildlife oasis
In August 2021, an authentic Middle Eastern retreat named Zoya Wellbeing & Health Resort Zoya at Al Zorah will open in Ajman, UAE, developed and operated by Premedion; an international spa consultancy and management company with expertise in wellbeing, fitness and health.
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