Ms. Waldvogel

Spas, Health & Fitness

Resort & Hotel Spas Implement New Promotions to Appeal to Spa-Goers

By Deborah Waldvogel, Chairman, International SPA Association

Over the last decade, the spa industry has been booming. In 1999, when the International SPA Association (ISPA) first collected data on the state of the industry, there were 5,689 spas (473 of which were resort/hotel spas) in the U.S. In comparison, the most recent data from 2009 shows an increase to 20,600 total spas (1,810 of which are resort/hotel spas). Needless to say, the industry was enjoying a time of growth and a spotlight in the national media. The resort/hotel segment remained the second largest spa type behind the day spa segment, and became a deciding factor for many leisure and business travelers. With 24 million visits to resort/hotel spas alone in 2009, it’s important for marketers to shine the spotlight on their facilities. To put it into perspective, today a spa is an essential element of a hotel, just as a fitness center was in the 1980’s.

Even with all the growth of the past decade, the spa industry was not immune to the economic downturn. It has weathered the storm by helping consumers cope with the increased stress brought on by the recession through stimulating demand using unique marketing and discounting tactics. The number one reason that people go to a spa worldwide is to relieve and reduce stress, and it’s no secret that consumers have never needed stress relief more than in the past few years.

The ISPA 2010 U.S. Spa Industry Study provides insight into the marketing initiatives that resort/hotel spas implemented in 2009, the most difficult financial year in decades. The spa industry held strong by implementing unprecedented marketing strategies.

Re-thinking Treatments

Spas re-engineered treatment menus to attract new spa-goers and more efficiently run their spa business. Gone were the days of menus that offer 10 different types of facials or massage options. By simplifying menus, spas were able to promote the “getting back to basics” lifestyle, which is focused on health and wellness. The emphasis was on core results-orientated treatments, including traditional massages and clarifying facials. Elaborate treatments that incorporated exotic ingredients were hard to find since people wanted the comfort of knowing what to expect. In fact, a deep tissue massage was the most offered type of massage. Spa-goers wanted tangible results that justified their spending at the spa.

With more careful discretionary spending, customization and customer service expectations were at an all time high. Spas responded by providing exceptional service and making each visit a customized experience for the guest. Tailoring the spa experience can include everything from adjusting the temperature and music selection of the room, to the scents and specific modalities used in the treatment. This heightened attention to detail enabled guests to leave the spa knowing they received the best value for every dollar spent.

Prior to the recession, longer services were offered to encourage guest to devote significant time to their health and well being. Yet in 2009, express treatments that are 30 minutes or less were offered by 75 percent of spas. These treatments allow a busy executive the opportunity to sweep in for a quick manicure, facial or chair massage between meetings and leave feeling refreshed and re-energized. Express treatments proved to be a great way to drive traffic into the spa. Tapas-style sampling menus that allowed guests to select several mini-treatments were a welcomed addition to treatment menus. This type of promotion helped attract first-time spa-goers who wanted to sample a treatment before investing a full hour or day at the spa.

Promotions Drive Traffic

Spas introduced a wide range of promotions in 2009. Over 75 percent of resort/hotel spas rolled out new packages, discounts and programs. Research shows that:

• Reaching out to new spa-goers was an important theme in the packages offered by spas. Sixty-three percent of spas introduced discounts or incentives for first-time clients.
• Sixty-four percent of spas sought to expand their existing customer base using referral incentive programs.
• Loyalty programs were also popular with 60 percent of spas implementing them. These types of offerings allow guests to build up points to use at the spa just like frequent flyer miles or hotel rewards programs.
• Hotels looking to entice travelers and increase bookings offered free treatments or spa credits when booking a room.

Reaching Out

Another strategy that proved to be very fruitful for many resort/hotel spas was opening their doors to local clientele. In fact, 51 percent of spas implemented special offers for local members of the community in 2009. Resort/hotel spas have an advantage over typical day spas since some can offer a wide range of amenities for guests to enjoy. Fitness centers, pools, steam rooms, and even spa cafes were widely available at hotels and more often guests came early and stayed after their appointment to take advantage of these amenities. This allowed spa-goers to make an entire day out of a one-hour treatment. With locals coming in, packages targeted at diverse client groups like men, teens, families and seniors caught on. The most popular type of package is for couples, followed by packages for wedding parties. Not surprisingly, this was a huge opportunity for resort/hotels to attract clients looking to have an all-inclusive experience at the resort.

Resort/hotels without spa facilities recognized they were missing an element guests expect. Many reached out to local day spas to work out a partnership. This arrangement brought mutual benefits for both parties – the spa enjoys increased business; the hotel accommodates guests; and the client often benefits from a discount.

One of the newest and most significant trends of the past two years has been the proliferation of social media. The resort/hotel spa industry was quick to catch on by utilizing sites like Twitter and Facebook to offer last-minute deals and rebook cancellations. They also started a dialogue with their customer base gaining feedback to improve their services and keeping them engaged between visits. Recently, daily deal sites like Groupon and LivingSocial have become popular ways for resort/hotel spas to promote themselves and offer deals. The ISPA study revealed that 54 percent of spas are offering discounts through social media, but it’s likely that this number will increase since the next wave of spa-goers, the millennials, are constantly tapped-in. The spa used to be one of the last places you could go to unplug, but this could be changing soon with the increased use of technology among a new population visiting spas.

While all of these marketing tactics and promotions helped to lure guests into the spa, it’s important for resort/hotel spas to proceed with caution. The mentality of consumers has changed and people are not likely to go back to the spending habits they once enjoyed. Spa-goers have experienced great discounts, the likes of which they hadn’t seen before, and they will expect to continue to see them. The spa industry must continue to find ways to make the spa experience an essential part of people’s health and wellness routine.

International SPA Association Chairman Deborah Waldvogel brings 14 years of spa and travel industry experience to the association. Ms. Waldvogel is serving her first term as Chairman of ISPA, the leading worldwide organization of the spa industry with members in more than 70 countries. This accomplished spa professional is the Director of Spa Development and Operations for Sedona Resorts in Sedona, Ariz. Ms. Waldvogel's responsibilities include financial feasibility studies, concept development, design, as well as managing opening and operations for unique, luxury resort and destination spas with an emphasis on wellness programs. Ms. Waldvogel can be contacted at 859-226-4326 or Extended Bio...

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