Three issues affecting the Resort and Spa Industry

Discuss About The Hospitality Management Journal Contemporary.

The Resort and Spa Industry is a potential choice for the hotel industry. The concept that has worked behind its built up is itself very powerful and hence, became a very potential resource for the hotel business. The potential concept now faces a few of issues which seriously affects its business potentials. The assignment mainly focuses on identifying the three of the issues that affect the Resort and Spa Industry. Moreover, it also tries to produce one recommendation to every single issue. The study also highlights the five emerging trends in the industry and also the probable impact of factors on the Spa and Resort Industry in future.

Three issues in Resort and Spa Industry: The industry faces many issues that also include Customer Loyalty, Recruiting the Best Staffs and Incrementing Competition in the Sector. Customer loyalty is essential to the success of the industry. The increase in customer loyalty level means an increase in customer retention capacity. Various cases show that it is imperative that the lodging business create customer loyalty, rather than depending exclusively on evaluating techniques (Kandampully, Zhang & Bilgihan, 2015). A committed spotlight on customer loyalty is probably going to end up an important essential for the Spa and Resort Industry’s survival in the future. Hospitality managers trust that organizations can enhance their benefits by satisfying customers. Studies appear, notwithstanding, that satisfying clients alone isn’t sufficient since there is no assurance that satisfied clients will come back to purchase. It is currently becoming obvious that customer loyalty is fundamentally more critical than customer loyalty in a business organization’s prosperity. A “loyal customer” is a client who repurchases from the similar service provider at whatever point conceivable, and who keeps on suggesting or keeps up an uplifting disposition towards the service provider (So et al., 2016). There are two measurements of customer loyalty: behavioral and attitudinal. The behavior dimension alludes to a client’s conduct on repeat purchases, showing an inclination for a brand or a service over time. Attitudinal dimensions, then again, allude to a client’s goal to repurchase and suggest which great indicators of a loyal customer are. Besides, a client who has the aim to repurchase and recommend is probably going to stay with the organization (Han & Hyun, 2015).

There are connections between quality of lodging, satisfaction, and the consequent impact on customer’s desire to suggest or publicize the lodging to future customers. Clients’ intentions to suggest are a component of their view of both their satisfaction and service quality with the lodging experience. Henceforth, it can be inferred that there is a positive connection between consumer loyalty and customer satisfaction (Martínez, 2015). To increase the customer loyalty, it is of requisite necessity to understand the customers. Employers must know the ways to identify the insights of customers. This can be done with an effective measurement of customer views of specific Resort and Spa service provider. The measurement is attainable through an effective use of CRM (Customer Relationship Management) and its integration with various social media platforms. The recommended solution can yield valuable insights of customers. Hence, this produces the much needed data which is important for marketing the offers. The employer thus makes the most relevant offers for the targeted customers which possible may result in an increased repetition of purchase. Hence, customer loyalty can be increased (Navimipour & Soltani, 2016).

The importance of customer loyalty in the industry

The hospitality industry at the global level is experiencing a gigantic undersupply of a qualified, connected with and motivated workforce (Ardanaz & Mares, 2014). The test is and will forever begin with recruitment. Finding the appropriate individual for the right job is now a challenge. Simply, gone are the days where putting resources on the floor and hoping for?the best was sufficient, at least for those of employers who wish to deliver a service that holds the clients returning back to it (Guan et al., 2015). Attempting to make individuals fit into specialized sets of expectations is a system that is at present struggling and this is the reason retention is a testing point and worth talking about. Pulling in and holding the right people to work operationally in the hospitality business isn’t just a skill matching activity. It’s about people and service and how these people inherently collaborate with others. For an example, with numerous Middle East nations traditionally saw as ‘hardship’ goals, also the current spate of inside distress in nations over the area, the hospitality market in the Middle East has needed to strive to discover and create solid source markets for recruitment. As of late, recruitment in the locale has seen a flood of staff from India, the Philippines, and numerous other South East Asian nations. However as their economies have turned out to be more buoyant, with numerous now touted as rising property markets, it is winding up considerably harder to discover staff who are ready to re-situate to the Middle East (Waxin et al., 2018).

Numerous major hotel groups may have maintained a strategic distance from the staffing crisis up to this point, however as organizations keep on expanding, there are almost no doubts that they should advance up their recruitment programs in the event that they are to draw in the correct staff (Friedman et al., 2015). This could be possibly attained and are also recommended with hospitality companies attempting to establish their reputation and proving a point for the preference over others. The demand is growing and the supply is becoming restricted (Friedman et al., 2015). There could be many possibilities for the escalated point; however, this also holds true that recruitment of best staffs is not possible due to employer’s reputation and the shortage of skilled labors (Ehrenberg & Smith, 2016). It is rather suggested that the Resort and Spa industry must work on improving its reputation through effective data collection, relevant marketing strategies, and improved customer service. The shortage of labor is a challenge. There is a need for collective efforts from the local government, the administrative body and the local institution. The academic curriculum must have syllabus specially integrated with the industrial needs, so that, relevant skills are inherited in people. Hence, this will create the labor resources which are necessary to reduce the labor shortage issue.      

Recruiting the best staffs in the industry

Incrementing competition is an essential part of industrial facts for the hospitality industry. The competition in the hospitality industry is growing all the time. This is one of the industries that have kept on attracting new businesses and the concepts for taking advantage of the available opportunities. The competition in the industry can well be understood with the help of competitive analysis of the industry. Industry rivalry is bigger in this industry (Neirotti, Raguseo & Paolucci, 2016). This is due to the increasing number of competitors. Airbnb is one of the concepts which are rapidly increasing in popularity. It works as a broker that does not own a real estate property. They just act as an interface using which owners of different types of properties can reach to customers for the business purpose. Airbnb is an American based company and has a global presence. Airbnb does not provide lodging in hotels, Resorts & Spa or any other traditional format of lodging. It rather offers to lodge in other types of lodging facilities like the bungalow (Zervas, Proserpio & Byers, 2017). Customers are not offered the lodging to traditional lodging formats. Hence, formats other than the traditional format of lodging are becoming popular as such formats come in the form of spacious places and also customers can stay longer even for a month as well. Threat of new entrants is also very high because of the market which is still expanding and has scopes for more lodging facilities. Threat of substitute is also very high as it has happened with Airbnb in the picture. Bargaining power of customers is also very minimal because there are options for each income classes. The hotels are marked in stars such as three stars, five stars and seven starts depending on the facilities and leisure that they provide to customers. Bargaining power of suppliers is also very low due to the abundance of suppliers (Claveria, Monte & Torra, 2015). Hence, factors are quite supportive of new entrance in the hospitality sector. This is why the competition is always high in the hospitality sector.

The Resorts and Spa Industry need to understand the consumer behavior like that are all the factors that make them happy and satisfied. This is recommended that the industry analyses the future preferences of customers like what more they want to be included in the industry. This is gettable indeed if customers are surveyed and also interviewed whenever it is possible seeking their suggestions on further addition and improvement of facilities and leisure (Tsang, Lee & Qu, 2015).

Incrementing competition in the industry

There are a few trends which may be a potential booster for the Spa & Resort Industry. Such trends are a good gain for the industry and the business.

Awareness for Health Wellness: People are now explored to a much different world where they have ample of resources to know about their health-wellbeing. The various kinds of media like the website articles, newspapers, TV news, awareness TV soaps and others are the sources where customers are explored to a variety of informative articles on health-related facts (Okech, 2014). People in specific the Millennials are a serious group of learner who spends significant times on reading the website articles on health-related facts. Hence, they are now growing in their awareness for health wellness (Abramson, Keefe & Chou, 2015). It is a good opportunity indeed for the Spa & Resort Industry that it takes the full advantage of it by enriching the health-related treatments. Customers must feel that these centers are the best places to seek for their health wellness. They do not have much of the time and are busy with different kinds of stuff. Hence, they must find the industry as one point solution which also provides the leisure moments to spend.

Architectural Wellness: It means improving the physical layout of such centers. Those who come for the treatment they must feel the natural essence in every corner of it. The Spa & Resort lodge must comprise of natural scenic like a noisy free area surrounded by lush green trees and more (Csirmaz & Pet?, 2015).

Food as Medicines: People are also growing in awareness for healthy foods. They are not just confined to healthy foods but, also switching over to natural remedies those made from natural herbs. They have the idea of the side effects which allopathic medicines can produce. They also do not have any idea of getting cured of the types of diseases. Hence, there is a huge inclination towards the natural ways of remedies (Jelínková, Tu?ková & Jurigová, 2017). The Resort and Spa industry can actually include such arrangements in their existing services to make customers feel that they are in right hands.

Resort & Spa as a Stress Reliever: Many people after some distressful moment in their lives looking for an option to get rid of the stress. The anxiety and the stress after some major changes in life like life after divorce is a serious torturing for an individual. In such situation, Resort & Spa Industry can capitalize on the created opportunities. They have such treatments which can be a good way to get rid of the stress (Chen, Ruan & Yuan, 2015).

Strategies for improving customer loyalty

DNA testing: With growing education about the factors affecting the health, people now also have concerns about the impact of genes on their health. They are concerned with whether the particular disease is being transmitted from their ancestors or parents. Grabbing the opportunities as discussed more Spas are now coming with DNA consultations. They are aiming to really help their guests with the help of treatment plans, exercise and lifestyle choices (Cheng & Liu, 2016).

Therefore, the Resort and Spa industry has certain issues that also include customer loyalty recruitment of best staffs and industry competition. Customer loyalty can be improved if the industry has better ways to collect the customer data. Data will assist in making better marketing plans necessary to increase the purchasing frequency. There is a need to focus on reputation management as this will help to attract the skilled professionals. Additionally, the governing body, the institutions, and others can all come together to increase the production of skilled professionals. Industry competition can be responded effectively by aligning the strategic plans with the rising trends in the Resort and Spa Industry.

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