Mr. Henkin

Spas, Health & Fitness

Critical Steps to Open Your Spa Effectively

By Gary Henkin, President & Founder, WTS International

Thus, it is ever more critical to appropriately plan your spa for a successful launch, both from an operational and financial perspective. If you don't take the necessary steps in the pre-opening process, your spa may disappoint guests and non-guests alike, and chances that it will ever be profitable are greatly diminished. As critical as it is to offer the most aesthetically pleasing and functional space through a thoughtful design process, it is equally important to "stage" your spa for a smooth launch. This requires focus on what the ultimate objectives will be and a clear definition as to how the spa will ultimately operate.

If you are planning the addition of a spa now or at a future date, take the time to follow the steps below and include them in your launch plan.

Begin With a Timeline

It is easiest to work backward from the official opening date for the spa. Create milestones for such areas as staff selection, training schedule, menu development, OS&E orders, retail product selection, spa uniforms, licensing and permit documents, marketing plan, operating budget, and numerous others. Complete the timeline with all of the details leading to those milestones to ensure that you hit them. Track your progress so that you don't fall behind.

Your Spa Should Have an Identity

Prior to (or during) the pre-opening process, you would be well served to consider the creation of an identity or "vision" for the spa. This is extremely helpful in positioning, delineating and selling the spa before it opens. Having a brand or theme can develop consumer anticipation and set the spa apart from competition. It also helps in the menu development process, product and OS&E selection. A clear identity, theme and/or brand will give your business a magnet to attract hotel guests and other day spa consumers.

Development of Your Operating Budget

This is a critical part of the pre-opening process. All too often, revenue and expense assumptions aren't fully discussed until weeks prior to the official opening, but this should be vetted well in advance. Income line items for treatment options (massage, skincare, body and nail services), product sales, food and beverage revenue and spa or fitness memberships must be predicted. Both internal (within the property) and external (outside the hotel) revenue should be projected. Expenses for payroll and benefits costs, IT services, accounting, cost of goods, operating supplies, insurance, laundry costs and utilities, locker room supplies, marketing/promotion, printing and linen costs among numerous others must be projected.

Select and Train Qualified Staff

In order to effectively train staff on procedures, polices, data systems and service delivery, the process needs to start weeks before the spa opens. Staff needs to be trained, tested and re-tested well prior to the opening date. In many spa openings this takes place at the "eleventh hour" and can negatively impact the reputation and perception of the spa right from the start. Make sure to give yourself at least 90-120 days (at a minimum) to complete this critical task. Also, make sure to schedule re-trainings three months after the spa has opened to cover items the staff may have forgotten or missed. In selecting your Spa Director or Facility Manager, pay attention to a number of traits that will impact his/her success; these include management skills and business acumen, experience in sales and promotion, retail knowledge and financial skills to name just a few. Equally, if not most important, is an outgoing personality and an understanding on the part of your Director of the importance of creating and delivering extraordinary customer service. All too often, the choice of a Spa Director is influenced more by direct spa background and experience, but in today's world, this individual must be focused on business and organizational areas.

Create a Delineative Spa Menu and Select Product

One of the first impressions customers will have is that of the retail area and product selection. Retail plays a strong part in creating customer loyalty, return visits and revenue generation. Product selection should be in line with service pricing in the menu. Select your skin care lines in tandem with the menu development. An OS&E (operating supplies and equipment) list along with a product inventory system should also be created. Using the opening OS&E list, build order guides with reference item numbers and estimates of how often each item needs to be ordered; this saves time on re-orders and helps eliminate erratic purchasing. Finally, use your product vendors to provide training and information. They have a wealth of knowledge and will help merchandise their products. Suppliers will also help you assemble, test and arrange spa equipment.

Don't Forget Licenses and Permits

Pay strict attention to the procurement of licenses and required permits. Often, this is an afterthought and licensing requisites can vary from state to state. Thus, don't leave this step to the last part of the opening process. Explore what is needed well prior so that you don't have to panic at the last moment. You don't want to open your spa on a Saturday and have to close it the following Monday.

Marketing and Promotion Planning Should be Done Early

Particularly, in the existing economic environment, it is vital to create and execute a viable marketing/sales plan. It should focus on both the internal (within the hotel) and external markets. A budget should be created to include a grand opening party, advertising, public relations (as appropriate) and a grass roots marketing campaign. Gift certificates, brochures and menus need to be developed as well. It is critical to integrate the spa into the hotel's sales department, and training of hotel sales staff combined with the development of special spa packages should occur. Hotel reception staff, concierge, in room collateral prices and promotions tied to F&B all need to be integrated with the spa. In most instances, a spa simply won't produce black ink to the bottom line unless there is a sales plan that is well thought out and executed with some degree of precision during the pre-opening period.

These are just a few of the many items which must be planned and executed to create a successful spa launch. A completed opening-timeline can include literally hundreds of items. In this highly competitive marketplace and difficult economic climate, a smooth and well orchestrated pre-opening process is crucial to maximizing the opportunity for financial and operational success. Start this process months in advance of opening (6-8 months for smaller spas and 10-14 months in advance for larger facilities), and don't wait until the last moment. It is more important than ever to prepare your spa for a successful launch and for the best possible outcome thereafter.

President and Founder of WTS International, Gary Henkin has 30 years in the planning, design and management of health clubs, spas and athletic facilities. He has developed feasibility and needs assessment studies for spa and/or health club properties. WTS has become one of the world’s largest and fastest-growing leisure consulting and operating firms. The firm has about 1,000 employees worldwide and provides services to hotels, resorts, luxury residential properties, exclusive golf and country clubs, day spas and real estate developments throughout the United States and overseas. Mr. Henkin can be contacted at 301-622-7800 or ghenkin@wtsinternational.com Extended Bio...

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