Transcript Toward Wellness… It’s Not Just a Spa Anymore

Toward Wellness…
It’s Not Just a Spa Anymore
ISHC Annual Conference
Presented by: Peter Anderson, ISHC
Patty Monteson, ISHC
October 27, 2006
Resort-Type Spas
Destination Spa
Resort Spa
Purpose/Goal Oriented
One of Many Resort
Amenities
Philosophy/Focus
Combine Spa with
Vacation/Conference
Exercise & Nutrition
Quick Getaway
Orientation/Measurement
Feel Good Aspects
Programs/Packages
Ala Carte/Combinations
Spartan to Luxurious
4-5 Star Resorts
Source: HFD
Estimated Sizes of U.S. Leisure
Industries
INDUSTRY
REVENUES ($B)
Golf Fees & Dues 2002
19.7
Cruise Line Revenue 2003
14.7
Health/Racquet Club Revenue 2003
14.1
Spa Revenue 2003
11.2
Amusement/Theme Park Rev. 2003
10.3
Box Office Gross Receipts 2003
9.5
Vacation Ownership Gross Sales 2002
5.5
© ISPA 2004 Spa Industry Study
Spa Segmentation
LODGING SPA
DESTINATION
DAY SPA
RESORT
HYBRID SPA
Source: HFD
Resort and Destination Spas
at the Vanguard
• Cutting Edge Modalities
• Capital to develop the infrastructure &
programming
• Cultural creative market to sell it to.
Hybrid Spa
Resort-Based
Major Amenity
Maybe Separate Name/Identity
Maybe Separate Brand Recognition
Marketing/Advertising
Spin-off Businesses
Source: HFD
The Perfect Storm
Fueling the Hybrid….
Spa/Wellness
Belief
Systems
Medicine
Lifestyle &
Psychographics
Market Driven
Hybrid Spa Expectations
• Hybrid spas represent great opportunity
for the Hospitality Industry.
• Positioned to address issues related to …
– Socialization/ Community
– Medicine
– Spiritual & “Meaning of Life”
How far to Push the Envelope?
Mind-based and other non traditional
treatments are increasing
Spa operators are approaching this
area slowly, and gently
The timid are behind the power curve.
Starwood Hotels and Resorts…
• Understands the link between the mind and body
• Offerings in larger spas with more comprehensive
facilities and programming.
Seven Pillars of Well-Being – the core
philosophy. One of the pillars is termed “Life
Balance” which requires a minimum of (2)
offerings which address spirituality such as
Yoga, Tai-Chi, Meditation and even Reiki.
Starwood uses these trends for
Revenue Enhancement
demand for group-based fitness that
address both the mind/body.
private consultations
one-on-one activities such as Tarot card
readings, astrology and even some
aspects of Ayurveda, all touch upon
“new areas for enhancing revenue”
Another major hotel
and resort chain speaks…
“Our spas are not corporately positioned in this
manner. We have a broad based audience
and must be conscious of not alienating
anyone”.
“Why would we do that?”
THE BIGGER THE PLATFORM THE MORE
RESISTANT TO EMBRACING THE
UNCHARTED MARKETING WATERS….
And now for the Independent Spa…
Red Mountain Spa, Utah
• spirit hikes (which are silent)
• meditation focused hikes.
• Native American Spiritual Journey class (educates
guests on local Native American spiritual traditions).
• Inner awareness/spiritual based fitness classes such
as yoga, breath, meditation, etc.
• Native American Medicine Card readings
• Native American sweat lodge experience into the spa
• Evening programs such as an Inca Fire Ceremony,
Drumming/Prayer Circles, Sacred Spiral Circle
Walks, Introduction to Meditation, and Kundalini
Yoga.
Case-by-Case Evaluation Required
Some well-established chains fear
loosing market share with non-traditional
treatments.
Be sensitive to language and “promises”
Belief Systems addressed in spa
programs include …
Nutrition
Anti-aging
Well-aging??
Child rearing
Professional ethics
Personal
Relationships
Intimacy
Philanthropy
Sustainability
Health
Socialization
Belief Systems Change
• Yoga…………........ Pre dates Indian,
Hindu and
Buddhist
• Christian Science … 1866
• Christian Yoga……. 2006
Spas Adapt
Madonna and Child
Iconography
Number of US Spas
• ~12,000 Total
~1,700 Resort/Hotel Spas
~8,800 Day Spas
~ 800 Medical/Mineral Spas
~ 700 Club Spas
~ 190 Destination Spas
© ISPA 2004 Spa Industry Study
Why People Use Resort Spas
• Relieve Stress
• Want a Small Indulgence
• Want to Feel Better
• Improve Physical Health / Well-Being
Source: HFD
Well being vs. Wellness
This is hard to create in a microwave society
based on instant gratification…. Wellness
counterintuitive in this context.
A conundrum ….
As long as the customer can receive almost
immediate benefits, the treatment or session
has (commercial) validity…
What They Enjoy Most about the Spa
Rest & Relaxation
Source: HFD Spa Consumer Research (hfdspa.com)
I would return to a spa if…
• 77% = I felt at peace after my visit
• 69% = I felt it was time well spent
• 66% = I enjoyed the spiritual/renewal
aspects of the spa
• 60% = I felt I had “taken care of me”
• 58% = I enjoyed the health aspects of
the spa
• 55% = I enjoyed the rest/relaxation and
pampering aspects of the spa
Ⓒ Health Fitness Dynamics, Inc. (HFD)
What do spa goers want …
Modality
Retreats
Reflexology
Healing Hands
Fitness & Nutrition
Energy Work
Lifestyle
Enhancement
Cranial Sacral
Labyrinth Walking
Percentage Rank
71.4 %
40.0
37.0
32.3
30.3
28.6
13.3
13.0
What do spa goers want...
Modality
Emotionally Safe Place
Percentage Rank
10.4 %
Attunement
10.0
Reiki
9.8
Aura Soma
8.8
Meditation & Prayer
8.0
Qi Gong
7.6
Ayurvedic Med
7.3
US “Spa Lifestyle”
• More Self Responsibility for Health
• Spa Products are “Everywhere”
• Spas are “Everywhere”
• Home as a Retreat / Sanctuary
• Quality and Quantity of Life
US / Europe / Asia
• European Water Experience = Kur,
Thermae, Balneario
• Japanese Baths = Crucial element of
Culture
• US = “Stylish” Water & Bathing
Experiences
Credibility of Culture
Assists Acceptance as long-standing
healing modalities. ….
Asian, European, Native American, Eastern,
and Indian (Ayurvedic) have received
traction with the spa going public.
Spa Playground Concept
• Based on Central European Concept of
Water/Thermal Experiences
• “Healing”
• Self Service
• Playful / Intro to Spas / Relaxing / Social
• Co-ed
• Low Labor Costs
US / Europe / Asia
• European = Walking, Outdoor Activity,
Recreation
• Chinese = Tai Chi; Chi Kung
• India = Yoga
• US = Aerobics; Running
“US Resort Spa Trends”
• Spa Anywhere/Everywhere
(Spa “Feeling” Throughout Resort)
•
•
•
•
Younger Spa Users
Spas for Connecting/Bonding/Celebrations
Kids’ Spas
Aging Baby Boomers = Lifestyle Real Estate
(Co-Branding: Canyon Ranch Living, Cooper Clinic)
Source: HFD
Selling A Lifestyle
• Hotels & Resorts – Condo Hotels
• Timeshare & Vacation Club Properties
• Residential Real Estate Developments
Source: HFD
Total Cost To Build a Spa Can Be…
• 4 Star = ~$350 - $450 / Square Foot
• 5 Star = ~$450 - $550 / Square Foot
(Turn-Key, Excluding Land Costs & Infrastructure)
Source: HFD
HFD’S Operating Pro Forma Guidelines
(stabilized)
FULL -IBU SEMI - IBU
DEPT
Payroll before
Benefits
Payroll & Related
35% - 45%
35% - 45%
35% - 45%
45% - 55%
45% - 55%
45% - 55%
Operating Expenses
25% - 30%
20% - 25%
15% - 20%
Net Operating
Income
10% - 20%
20% - 30%
30% - 40%
Spa = responsible
for all direct oper.
expenses & most
A&G. No rent.
Spa = responsible
for all direct oper.
expenses &
limited or pro-rated
A&G. No rent.
Source: HFD
Spa = almost
stand-alone
business. No
rent.
HFD 2004 Spa-Specific RPOR
US Spas
Non-US Spas
High
$111.44
High
$132.45
Median
$ 36.27
Median
$ 40.98
Low
$ 6.72
Low
$ 3.67
Average $ 40.09
Average
$ 49.02
N = 60
N = 40
© 2004 Health Fitness Dynamics, Inc.
Parting Shots
Beyond the next 5 year we may see
Increases in Modalities that support
• General medical issues
• presentation of the spa environment
– Light levels, fonts, ADA issues
• Hydrotherapy
• Socialization
Parting Shots
Beyond the next 5 year we may see
Increases in Modalities that support
•
•
•
•
•
•
Memory and Mental Alertness
Enhanced Skin Care lines
Neutrasuticals
Cosmetucials
Hospice related treatments
Euthanasia options