Turnitin The Correlation between the Characteristics of Spas and Its Performance in Bali

Darmawijaya, I Gede and Sekarti, Ni Ketut and Sucitadewi, I Gusti Ayu and Adi, Ida Ayu Sri Puspa (2017) Turnitin The Correlation between the Characteristics of Spas and Its Performance in Bali. Conference Proceeding Book, Conference Proceeding Book.

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Abstract

The spa growth in Kuta Selatan alone is 40% per year (Darmawijaya, 2010) and 20% in Indonesia till 2013 (Siregar, 2014). This tremendous growth indicated that their performances were good. Conversely, the previous reseach revealed that the spa occupancy rate was as low as 18% with the average treatment rate per hours was Rp 67.000. This findings showed that the number of spa businesses in Bali were saturated. In order to know whether the number of spas were saturated in year 2016 onward, this research played its significance. The objectives of this research were to identify the correlation between the characteristics and the performance of spas in Bali. To achieve these objectives, this research made use questionnaires to collect the data from 100 respondents which were purposively sampled. Since the density of spas were in Gianyar and Badung Regency, these two regencies were choosen as research sites. Out of 253 spas in Gianyar and 529 Spas in Badung, 100 spas were used as samples in which 70% were day spas and 30% were hotel/resort spas. The analysis method applied for this research was descriptive statistical analysis. The results showed that among six characteristics namely the category of spa; treatment price per hour; spa capacity; ratio between spa capacity and number of employees; employees’ education; and profession sertification; only the characteristic of treatment price per hour had significant positive relationship toward the performance, Revenue Per Available Treatment Hours (RevPATH). It had 0.88 coeficient correlation and 77% coefficient determination. It meant that 77% of the RevPATH caused by the treatment price per hours and 33% caused by other factors. Spa categories: day spas or hotel/resort had very weak relationship to RevPATH with r value 0.18 and 3%. Other characteristics: ratio spa capacity to number of employees and employees’ qualification/certified had r and r2 value respectively 0.26 and 7%; 0.09 and 1%. Surprisingly, Spa capacity and employee educational background had negative correlation to RevPATH with the same r and r2 value, -0.18 and 3%. The implications of these findings are government needs to carefully issue new spa licence since the number of spa seems to be saturated and observes all spas to find out their performance and practices. Moreover, government should review the effectiveness of profession certification as this characteristic had no significant correlation to the RevPATH. The spa operators need to market the spa more intensively so as to increase the spa occupancy rate. Spa revenue management should be used as a tool to generate revenue in low hours sales in order to sell right treatments to the right customers at the right time. Spa training on upselling and product knowledge were urgently recommended to generate more sales and to increase occupancy rate. The spa educational institutions needed to focus more on treatments to produce tangible result and marketing ability to yield profits. The competencies delivered by spa educational instititions should be linked and matched with spa industry requirements.

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