GUIDE: increase hospitality revenue with wellness

Wellness is in great demand these days. Check out our guide on how to increase hospitality revenue with wellness.

After a difficult couple of years, hospitality businesses are looking for ways to increase revenue and looking to wellness as a magic solution.

In a recent McKinsey survey of more than 7,000 consumers in Brazil, China, Germany, Japan, the United Kingdom, and the United States, consumers in every market reported a substantial increase in the prioritization of wellness over the past two to three years. And most consumers said they will spend more on wellness in the future. In that report, McKinsey estimates the global wellness market at more than $1.5 trillion, with annual growth of five to 10%.

Meanwhile, according to The Global Wellness Institute, the global wellness economy was valued at $4.5 trillion in 2018 and the industry grew by 6.4% annually from 2015–2017, from a $3.7 trillion to a $4.2 trillion market.

Skift also recently reported that revenue from wellness vacations is expected to reach an estimated $919 billion worldwide by 2022. Moreover, an American Express survey conducted in September, 2021, found that 76% of global travelers intend to spend more on travel to improve wellbeing and 68% will likely plan their next vacation around improving mental wellbeing in particular. Additionally, 60% of respondents are currently dreaming of planning a wellness-focused trip, with 41% expressing interest in booking a hotel with wellness activities and 38% interested in visiting a wellness resort.

It’s no wonder wellness is looking so good. 

Wellness is not a quick fix

In an interview with Spa Executive about her book, The Wellness Asset, How wellness can transform and futureproof your hotel, global wellness expert, Sonal Uberoi said, “Wellness is the new luxury that today’s consumers are looking to our industry to provide as they pursue a state of wellbeing that allows for a fuller human experience than traditional hospitality typically provides.

“It has become standard to find a spa and gym in five-star luxury hotels, but the market now demands increasingly more sophisticated, integrated wellness experiences.”

(As an aside, it’s worth noting that, in the book, Uberoi points out that, while the terms wellness and wellbeing are often used interchangeably, they mean different thing. “Wellness,” she writes, is the tool, and “wellbeing” the goal. Your hotel, therefore, is offering wellness to guests with an aim to enhancing their wellbeing.)

Uberoi also writes, “Wellness is no longer confined to a specific activity or a physical space; real wellness is more than a spa, a gym or a studio. The definition of wellness is broad and involves anything that enhances overall wellbeing. Therefore, a lot of activities – such as horse riding, hiking in the mountains, cooking classes and coaching sessions, or wine tasting – that many hoteliers are already offering their guests are essentially wellness-related activities. Once you accept that you can’t keep away from wellness – whether you have an urban hotel or a resort, whether you are budget, mid-scale or luxury – you start seeing the immense revenue-generating opportunity in front of you that wellness adds to your hotel offering.”

Uberoi and other experts repeatedly caution, however, that wellness isn’t a quick fix or a magic bullet. It takes work and commitment. Developing an understanding of wellness trends and industry best practises is key to including wellness in a way that improves your overall guest experience in a way that adds value and creates additional revenue streams. 

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