Competitive Capacity of Spas in Hotel and Resorts in Phuket

Abstract

The objectives of this study were (1) to study five forces in running spa business in hotel and resorts in Phuket, and (2) to study hotel and resort spa’s competitive capacity in the industry in Phuket. The result from this research can be applied in the relevant public and private organizations to develop their business strategy or to support their company’s business model. The primary data for this research was gathered from spa business entrepreneurs and spa managers in hotels and resorts located in Phuket. The samples were randomly selected using the ‘Snowball Sampling Technique’. Of the samples chosen, ten samples were interviewed thoroughly while twenty-five other samples evaluated for their competitive potential. The samples were analyzed using the ‘Five-Forces Model’ Research tools consisting of semi-structured interviews and ‘Five-Forces Model’ evaluation forms. The results are then presented under five headings, namely, Services; Personnel; Products, Equipment & Tools; Organizational Management and Location & Environment. The analysis of the research shows that: (1) For Service, Product, Equipment &Tools and Location & Environment, their overall ranking in the hotel &resort spa business are high. (2) For Personnel and Organizational Management, their overall ranking is in the moderate range. (3) Lastly, the competitive capacity for hotel & resort spa business rank in the moderate range for every section. Therefore, public and private spa business industry should cooperate to find a solution to develop and create a strategy to increase their competitive capacity. Such cooperation will lead to higher efficiency in the spa business in Phuket, and hopefully it can become a market leader both in South East Asia countries and internationally.