Understanding the subtleties connected with expanding this new growth is critical to evolving meaningful and profitable investment decisions as wellness programmes and resorts continue to thrive. COVID-19 has expedited the need for new operational and technological modifications due to a variety of issues. Over the previous year, the hospitality business has seen major changes. Our attention to well-being lapsed as we focused on survival in the face of COVID-19’s panic and uncertainty. After the first shock of the circumstance subsided, a new awareness of immunity and personal wellbeing reawakened a passion for physical and mental well-being.
As a result, the familiar comforts of traditional travel and hospitality institutions have faded, and people are looking for new, health-focused ways to enhance and better their lives. In comparison to a conventional resort, wellness resorts offer a few distinguishing features. Most importantly, instead of selling rooms, wellness resorts promote wellness programmes. The cost of the programme often includes food and drinks, accommodation rates, and all wellness services included in the package. Stays of less than three nights are discouraged, and the guest stay is usually governed by a set of regulations or guidelines.
When it comes to investment prospects, the wellness resort business encourages wellness to produce a slew of good outcomes that impact everything from company image to ROI. The following factors will assist you in better comprehending why you should invest in the wellness business.
Loyal Guests and Longer Stays
The wellness programme of a resort speaks directly to guests, demonstrating that the resort cares about, understands, and values their needs and ideals. Because of the nature of wellness resorts, longer average stays are more typical, resulting in a more devoted customer base. Annually, 30 to 50 percent of visitors return to wellness resorts, with guests staying for a minimum of three days but more commonly seven or 14 days.
Improved ROI
A rise in income is obtained as the resort keeps the visitor engaged and focused on improving their well being at every touch point, from nutritious food and beverages in all outlets to in-room wellness elements like circadian lighting. Wellness resorts have a 35 percent to 45 percent greater RevPAR than typical resorts with equal facility standards and amenities, according to statistics.
Seasonality-Proof Destinations
Wellness resorts are less affected by seasonal fluctuations of a place, keeping steady occupancies throughout the year, because wellness may be experienced year-round. In comparison with wellness resorts, over the same period, 4- and 5-star hotels in the same places have less than 50% occupancy on average.
Further Investment Opportunities
Incorporating a wellness element to all on-site improvements procures more revenue streams and greatly improves ROI, in addition to increasing the duration of stay and generating more revenue from “non-wellness” services and amenities.