The struggling hospitality industry is improving through so-called “wellness travel,” trips to hotels and resorts that emphasize guests’ health and improved wellbeing. However, catering to the wellness tourism market brings new exposures.

While hotels in the U.S. lost $111.8 billion in 2020 and 2021 in room revenue alone,1 the industry is recovering. And wellness travel is helping lead the way, comprising 44% of the tourism market in 2022,2 and representing $817 billion in 2022 revenues worldwide and an estimated $1.3 trillion by 2025.3

Contributing to that growth is an expanded idea of wellness tourism that includes health coaching, medical-grade spa treatments, fitness classes and special food menus. Guests might design their own itineraries to meet fitness goals, help lose weight or improve their mindfulness through meditation and coaching.4

But adding wellness services and adopting the tenets of this rapidly expanding sector comes with risk. Here’s what these organizations need to consider:

  • If and how to outsource services: A hotel or resort that directly hires personnel like masseuses, nutritionists or fitness coaches will need to verify candidates have appropriate licenses, certifications and professional liability insurance. Wellness-focused resorts also need additional insurance, such as abuse and sexual molestation coverage, and in some cases, medical malpractice. Outsourcing relieves the burden of finding qualified employees, but companies need to ensure third-party vendors carry appropriate insurance for staff and services offered, and have a system for checking workers’ license and certification status. These vendors should provide quarterly updates on insurance and employment changes, and immediately notify the resort operator of any complaints about or issues with their employees.
  • On- and off-site wellness options: Underwriters need to know about expanded wellness offerings, whether it’s an activity within the facility, like fitness classes, or outside, like surfing lessons. Hotels offering higher-risk activities need to ensure they have the right policy endorsements to cover these risks, and that they’re managing the risks properly to lower premiums.
  • Waivers and disclosures: At check-in, guests need to know any inherent risks that come with their stay. They need to sign liability waivers prior to participating in activities, whether it’s a “forest bath” walk in the woods or a massage. Brokers and attorneys need to review all disclosures and waivers and ensure they adequately cover potential risks.

Contact HUB International’s hospitality industry experts to help your hotel expand its wellness offerings and manage the risk.

1 The American Hotel & Lodging Association, 2022 State of the Hotel Industry Report, accessed May 23, 2022.

2 Avison Young, The Future of Wellness in Hospitality, accessed May 11, 2022.

3 Global Wellness Institute, “New Data on Wellness Tourism: Projected to Hit $817 Billion This Year, $1.3 Trillion in 2025,” January 11, 2022.

4 Forbes, “11 Amazing New U.S. Wellness Retreats to Check Out in 2021,” December 30, 2020.