Spas are growing in favour with consumers but hotels believe there are more important areas, for investment according to a study of hoteliers by TRI Hospitality Consulting.

An opinion survey, conducted as part of a quarterly series, found more than nine out of 10 (93.8 per cent) respondents agreed or strongly agreed with the statement that consumers are increasingly seeking a spa experience as an alternative to other leisure activities.

The growth of this market means that quality spa facilities are the way forward for any full service hotel to achieve a competitive edge in today's market place, according to four in five respondents (81.3 per cent).

However, there remain some fears about spas. More than three in five respondents (62.5 per cent) said they did not know if spas are just another fad and that hoteliers should resist investing in such facilities unless a compelling business case can be built.

"The importance of offering quality spa facilities is now widely acknowledged by hotels. But there remains a degree of uncertainty about the longevity of the trend," said Jonathan Langston, TRI Hospitality Consulting's managing director.

There are also fears that the increase of spa products and shops such as Molton Brown, Clarins, Aveda and La Prairie will erode the popularity of weekend spa business at hotels. Most respondents (68.8 per cent) were unsure but almost a third (31.3 per cent) said they agreed or strongly agreed that this was the case.

However, the growing demand for health and beauty treatments was expected to drive spa demand by all who answered the survey.

Spa facilities are expected to be an increasingly important feature for the conference, tours and groups sectors in the UK reckon more than half (62.6 per cent) of respondents. Just 18.8 per cent disagreed.

But overall, most respondents believed there were better areas in which to invest to improve current hotel sales. More than two-thirds (69.0 per cent) preferred something other than spas, health and fitness, food and beverage or conference and banqueting in
which to invest.

Conference and banqueting was ranked ahead of spas and health and fitness by almost two-thirds (64.3 per cent) as an area in which to invest.

"The clear message from this survey is that while spas are important, there remain more vital areas for investment by hotels," said Langston.

In separate research, TRI Hospitality Consulting found that London had the most spas of any county in the UK with 117 spas. Surrey, Kent and Hampshire had, respectively, the next highest numbers of spas. These next three together had the same number of spas as the capital.

The biggest hotel spa brand is Hilton's LivingWell with almost a third more outlets than its nearest rival, Marriott Health Club.

TRI research also revealed that:

• Prices for day packages at spas ranged from £20 to £250
• The average price for a day package was £135
• 410 out of 957 spas do not offer set day packages but instead offer more tailor
  made versions
• The average number of beauty treatment rooms per spa facility is 3.5. The most
  offered by any spa facility was 40
• Destination resort spas are favoured ahead of day or hotel spas
  Confidence improves

Expectations of improved business among survey respondents have risen since the questionnaire last quarter. Looking ahead for the three months from April 2005, 87.6 percent were optimistic or very optimistic, an improved situation from the previous
quarter (66.6 per cent). Looking six months out 93.8 percent were optimistic or very optimistic.

And actual business performance has lived-up to or exceeded expectations. Threequarters (75.1 percent) of respondents said they were pleased or very pleased with current business performance and environment. Just 6.3 percent said it was
disappointing.

The same figure, 6.3 percent, said the performance was more than 10 per cent better than they had forecast three months ago. Almost a third (31.3 percent) said it was between one per cent and 10 percent better. Half (50.0 percent) said it was the same.

The economy remains the most important factor affecting demand, according to the survey's respondents. The improving prospects for global economic indicators were ranked as the most important external consideration on business prospects by 38.1 percent. Recent acts of terrorism were considered the next most crucial factor.