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 revenue per available room in 2021 remained about 50% below pre-pandemic numbers,1 the industry is recovering, with Canadian RevPAR predicted to reach $97 by early 2023, just shy of the national average of $106 in 2019.2 And wellness travel is helping lead the way. Globally, the wellness tourism industry is expected to reach $1.3 trillion in 2025.3 Canada’s natural assets — from mountain hiking and nature bathing in coastal rainforests to cold-water plunges in pristine lakes — make the country an ideal wellness destination.4

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.5

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” 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 STR Global Ltd., “Canada hotel RevPAR 54% recovered in 2021,” January 26, 2022.
2 Toronto Star, “Hotel rates surge as revenue in hospitality sector expected to bounce back to pre-pandemic levels in 2023,” September 24, 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 Conde Nast Traveler, “Why You Should Make Canada Your Next Wellness Destination,” July 25, 2022.
5 Forbes, “11 Amazing New U.S. Wellness Retreats to Check Out in 2021,” December 30, 2020.