US Consumer Sentiment Remains Cautious: Moving into the Holidays and Season- Why Your Team's Emotional Intelligence Matters

michela henke cilenti
Sep 18
4 min read

Interpreting and applying the latest McKinsey consumer research reveals why a change in how we engage with guests needs to be made ahead of a predicted tepid Holiday season/ fourth quarter

If you're a spa director or hospitality leader wondering why your team's recommendation rates and revenues have plateaued, you're not alone. Let's talk. The answer isn't changing job descriptions to recommend or higher incentives. It's supporting your team to hyper-individualize service, engaging deeper with guests and clients to grow perceived value in light of the cautious consumer sentiment and psychology that's happening right now.

McKinsey's latest consumer research reveals something fascinating: today's guests aren't simply spending less – they're spending more strategically. And this changes everything about how we approach service, value creation, upselling and recommendations.

Success in this environment lies in taking decisive action to address emerging consumer needs.....to reflect the distinct spending priorities of different demographics.

The "Value Now" Consumer Has Well and Truly Arrived

US consumers are operating with a "value now" mindset – they're "ascribing value to their purchases in new ways" and simultaneously economizing in some categories while splurging in others.

Think about what this means for your service, property, restaurant or spa. A guest might mention budget concerns about everyday expenses, then happily book a $30 massage enhancement or take the bottle of Chablis instead of two glasses of the house white. They're not contradicting themselves – they're being strategic about where their money creates the most value.

Despite economic uncertainty, "consumers said they planned to splurge most on restaurants" and hospitality experiences. The opportunity is still there, but the approach needs to tweaking and be open to change completely.

Your Best Therapists Aren't the Problem

Here's what I see happening: spa leaders are frustrated because their most caring, skilled therapists avoid making recommendations. These aren't your "sales problem" – they're actually your biggest opportunity. To see their perspective and build their confidence.

Consumers are focused on "essentials" and "looking for good deals," but they're also willing to invest in experiences that genuinely serve them. Your therapists intuitively understand this. They resist traditional "upselling" because they sense it doesn't match what guests actually want.

The solution is to see reluctance as feedback and channeling their emotional intelligence in a new direction.

Why Emotional Intelligence Beats Sales Training

In our workshops and exec coaching, we help teams recognize that "emotional intelligence is more important to performance than their abilities and technical skills combined." This isn't feel-good philosophy – it's a business imperative in 2025.

Consider the complexity your team navigates daily:

Gen Z guests: Their spending is "growing twice as fast as previous generations," yet 40% are "worried about their financial futures." They have money but need reassurance about value.

Economically cautious guests: They're "willing to delay immediate gratification in favor of long-term financial stability," but still want exceptional experiences.

Value-conscious splurgers: They continue spending despite expressing caution – they just need to feel confident about their choices.

No sales script can navigate this complexity. But emotional intelligence can.

The Four-Part Solution (many more, but right now)

1. Teach Your Team to Read Spending Categories

We definitely guide our teams to not judge a guest, or team member by suspending judgement, but it can be helpful to identify how a guest operates in one of three modes: economizing, maintaining, or splurging. Our recommending workshop helps service providers "learn to positively manage their emotions and read the emotions, needs and behaviors of others."

A guest mentioning work stress while booking a premium massage? They're likely in splurging mode for wellness. A guest asking about package deals? They want value optimization. Your team can learn to identify these signals through conversation, not interrogation.

2. Reframe Recommendations as Personalized Care

We help teams "reframe 'selling' as 'serving and helping guests make good decisions'" and "guide conversations that inspire clients to take action." We know the services best. This isn't semantic gymnastics – it's acknowledging what today's consumers actually want.

Instead of: "Would you like to add hot stones for $30?" Try: "I'm noticing tension in your shoulders. Hot stones would help me work deeper into those areas. Would that be helpful for what you're dealing with?"

The difference? The second approach demonstrates you're reading their specific needs, not pushing a generic add-on.

3. Build Authentic Connections First

Our approach helps teams "connect deeply and recommend in all types of conversations." When consumers are more selective about spending, trust becomes the deciding factor.

Your team already has the foundation for this – they choose service or wellness careers because they care about helping people and helping make good decisions. Some reframing and roleplaying helps to show the team how that caring translates into confident recommendations.

4. Create Experiences That Feel Curated

Today's guests don't want to feel sold to – they want to feel understood. We help teams develop the ability to "anticipate their guests' needs" and "hyper-individualize their interaction and engagement."

This is where the magic happens. When your therapist suggests an enhancement because they genuinely see how it serves the guest's specific situation, the conversation feels collaborative, not transactional.

The Business Case for Emotional Intelligence

Here's what happens when you get this right:

Guest loyalty increases because they feel genuinely cared for, not sold to
Team confidence grows because they're operating from their natural strengths
Enhancement acceptance rates improve because recommendations feel personalized
Revenue grows sustainably through repeat guests and referrals

The ROI shows up immediately "in employee and guest satisfaction scores and enhancement and retail revenues."

Moving Forward

The hospitality industry is at an inflection point. Consumers continue to spend, but they're making more strategic choices. The winners will be leaders who help their teams navigate this new reality through genuine connection and emotional intelligence.

Your therapists don't need to become salespeople. They need to become more confident in what they already do naturally – caring for people in ways that genuinely serve them.

Ready to transform how your team approaches recommendations?

The solution isn't in your systems or scripts. It's in empowering the emotional intelligence your team already possesses.

Want to explore how psychology-based training can transform your team's approach to guest recommendations? Let's talk about creating a workshop tailored to your specific challenges and goals.

Contact: Dr. Michela Henke Cilenti | 314-728-1109 | Book Time to Talk More

Learn more: Visit the recommending workshop page for more details

About the Author: Dr. Michela Henke-Cilenti has spent 25 years coaching hospitality leaders to build confident, emotionally intelligent teams that deliver exceptional guest experiences while driving sustainable revenue growth.