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the expert's advice

From Suite Benessere Magazine
Issue N. 18 | Summer 2004

Dr. Cantoni, we are the owners of a hotel that's in the center of a large Italian city. A while ago, we had a beautiful 1,000 sq. meter wellness center built, which is also open to the public. Half of the area is dedicated to beauty treatments, while the remaining area is dressing rooms, the reception, a gym, steam rooms and a relaxation area. Having gotten things off the ground a while ago, we have seen that, although it boasts quite a few members, we are just breaking even with it financially, with the greatest expenses being personnel and beauty products. We have been advised to increase our prices, but we're not convinced that that would be best. Thank you in advance. Marco C.

Dear Marco, your situation is [unfortunately] a common one in cases where a wellness center has been built in the absence of a preliminary cost evaluation. In any case, analyzing the few details you've given me, the fact that 50% of the area is used for beauty treatments stands out. I hope that whoever drew up the plans chose to use equipment that doesn't require the constant presence of personnel while the client is being treated. If however, that is the case, that would explain why it is so expensive for you to have enough personnel to manually operate 500 sq. meters of beauty center. One of the secrets of successfully operating a wellness center in a hotel is the capacity to make the client feel as though he is being pampered, even without excessive personnel. This is possible if you build a nice series of steam rooms that are in perfect synergy and proportional space-wise with the beauty treatment area. At the moment, you find yourselves in quite a different situation. Calculating that the reception area, dressing rooms, bathrooms and hallways generally take up about 25% of a wellness center and that you may have built a gym that is about 30-40 sq. m. in size, that would leave about 200 sq. meters. If we take away the space required for the relaxation area, the tea room and the monitoring center, you probably only have about 90 sq. meters left for your steam rooms, which is quite out of proportion to the 500 sq. meters of beauty treatment area. A hotel owner should hire a project consultant who can show him how the wellness area can be used by its clients without the requiring excessive personnel which, as you have seen, end up being a financial burden. Generally, raising prices - except for rare cases - does not help to solve the problem. A few months ago, my colleagues and I were called on to give a consultation in a similar situation. A hotel owner had raised his prices several times and consequently began to lose customers. After a careful analysis of every item in the book-keeping, we found that certain facilities were constantly operating in the red. For example, the project manager had built two massage rooms whose running expenses basically made it impossible to break even. After summing up the costs [personnel, products, electric and the cost of the furnishings and equipment], it was evident that, if he charged the going rate for this service, it would always cost more than it would yield. In the end, all we had to do was to replace the existing equipment with more energy-efficient machines that didn't require the constant presence of personnel. The result was a reduction in personnel costs by 20%, a 70% drop in energy consumption and a 45% savings on products. It might seem strange to you, but before consulting us, that hotel owner had never thought that modifying those two facilities could have had such a positive effect on the overall income of the center. I therefore do not recommend raising your prices, but rather suggest that you have a good analysis performed in order to determine what facilities you are losing money on. This type of analysis should normally be done while the initial plans for a wellness center are being drawn up and, in any case, before opening to the public.

Dear Daniele Cantoni, we are building a hotel with a wellness center in a town on the border between the Piedmont and Lumbardy regions. A few weeks before our grand opening, we were told that we can't use the tanning lamps that we had purchased because they are more powerful than what the law allows in Piedmont. Is this possible? What can we do? Greetings, Francesco V. [Oleggio - Novara]

It seems impossible, but in the myriad of regional decrees and laws and their respective interpretations, my company also often finds itself confronted with unexpected twists in the regulations that must be followed in building a wellness center in various regions and provinces. I'm sorry about your grand opening, but what they told you is true. The Piedmont region [and I believe it is the only region that has this law] does not allow the use of "class 4" tanning lamps in centers that operate under a "beauty center" license. Tanning lamps are categorized by class [from 1 to 4] depending on their power [derived from the proportion of UVB rays to UVA rays]. The only way that you would be able to use them [in Piedmont] would be to require your customers to present a doctor's prescription for each sitting, which would be unthinkable, even in a center that has been opened with a medical license. I suggest that you contact the company that you purchased them from, in the hopes that they have a similar class 3 model. The only other alternative would be to enlarge your wellness center until you cross the border with Lumbardy... because you can use your tanning lamps there!
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