Project Skill: Business Optimisation

The challenge:

The Spanish hotel chain, Hospes, had created and launched their spa brand, Bodyna in all their hotels and were exploring the possibility of rolling out the Bodyna Spa brand as a third-party operator for other hotel brands looking to sublet or subcontract their spa operations. The challenge they faced was that their spas were small and in urban locations; in general, they were underperforming, reporting a low hotel guest capture rate and total spa revenue.

The approach:

We carried out a detailed operational audit of the Bodyna Spa brand in the Spanish market. The results of the audit showed that although the brand had been designed well and had all the key elements, they weren’t clear on their guests actual wellness needs, which meant that their offering did not appeal to their ideal client. We proposed a number of corrective strategies that impacted every aspect of the brand: positioning, pricing, product range, service and customer segmentation. We also advised on how to tap into new and under-utilised markets – for example, local clientele in each of the regions they were operating. We adopted the lean startup methodology to test the market first, gain feedback and iterate before fully implementing the changes. Hence, the proposed corrective strategies were first implemented in a pilot phase in Madrid, to then be rolled out across Bodyna spas in Spain.

The outcome:

Each hotel and spa team was equipped with the tools to turnaround their wellness business. As a consequence of the lean methodology, the client saved thousands of dollars in expensive changes and instead opted for small yet effective changes. The hotels managed to tap into the local market by adoopting a dynamic pricing policy, thereby increasing overall revenue and profitability of their spa and wellness operations.