Is there a Spa in your Resort’s Future?

by Stephanie Foy
partner
Spa Business Group

Are you considering adding a spa to your resort? The spa is fast becoming an expected amenity for any luxury resort; along with golf, tennis and newer additions such as walking trails and venture sports, the spa stands out among resort-goers’ priorities. In the past decade, spas have gone from a luxury amenity at very high end resorts and hotels to a cornerstone feature in all sorts of settings; there are spas that feature local healing traditions to those that feature a smorgasbord of services reflective of the global influence in spa.

The number of spa-goers in the United States continues to grow. Each year for the last several years, the industry has experienced double digit growth. According to the 2006 International Spa Association’s Spa-Goers Study, 57 million adults in the US have been to a spa (more than one quarter of the adult population), the percentage of first -time spa goers is up to 15 %; of that number males now represent 31% of the spa market. Additionally, 63% of US spa goers have visited a spa while traveling away from home. Lastly, 64% of the spa goers report having visited a resort or hotel spa in the last twelve months, only slightly less than those reporting having visited their local day spa.

The demographics of the spa-goer profile seem to be a target audience for the resort market;

The reasons people give for going to the spa are also similar to the reasons they give for seeking a resort experience: to reduce/relieve stress, to escape and indulge, to be recharged and refreshed.

If you want to attract this segment of the market and keep up with the competition, it may be time to get in the spa game. But how? Where to start? There are some basic things to consider and plan for in your spa development process.

1. Does a spa fit in the vision and goals of the property?

If you desire to be a luxury vacation destination then the spa is surely already in your plans. However, many resorts, especially those that are small to mid-size may have started with one vision and are now expanding to encompass more amenities and services for their guests. A couple of examples are: a Midwestern golf resort that added a spa to attract non-golfing spouses, other groups and particularly to offer an amenity that was not limited by the season or weather and a southern tennis ranch that is adding a spa to keep guests on property and provide the services that the guests were often going elsewhere to receive, thus making their property more full service and attractive to their regular guests as well as newcomers.

Being clear about what and how you want the spa to add value to your property and your guests experience will help along the way in your development process. Also, as with any other amenity, the spa will not be your ‘field of dreams’ - build it and they will come. You will need to think how you will incorporate the spa in your overall planning, resort marketing and operations.

2. How large should my spa be and where should it be located?

Resort spas range from small 2 treatment room facilities to those found in larger resort hotels that may have upwards of 100 spaces for services at any given time. You should consider your existing property and scale the spa accordingly; for example, if you have a 100-unit resort, a 2-room spa facility is not enough and 20 are likely too many. What is the average income of your guest? In general, the higher the income, the more likely they are to frequent the spa. Industry studies suggest that the average spa revenue is about $40 per day per occupied hotel room with an upper end of approximately $115 per day per room.

Sometimes size is dictated by use of existing space - if it is an area to be converted then it will be limited to the space available. In many cases refitting and existing space makes sense, depending on what the space was used for and the costs of remodeling. There are many spas in places that were previously hotel or resort guest rooms, were individual homes on the property or modifications of other common use areas.

If you are in a building or in expansion mode, then working the spa into those plans and constructing it is often more cost effective. Breaking up concrete to retrofit plumbing can be quite expensive! One note of interest- revenue per occupied treatment room is higher in spas with more than 10 rooms than in those with fewer. Also, profitability is easier when management and support staff salaries are spread across a great number of rooms.

Wherever it is, you want to make it comfortably accessible for the guests while also providing some sense of quiet and tranquility. If the spa is to close to public areas the noise and crowds may be a distraction or if it is too far away or confusing to find, guests will find that difficult as well. It is important to strike balance between access and tranquility – if you must choose, weigh on the side of peaceful and inspiring. The opportunity to have a view of some natural beauty either from the relaxation area, the pedicure area or a social area is always a design ideal. If the intended location is not close to public space and kitchens, incorporating some space for small groups up to twenty, bridal parties and the like, to gather, as well as food service for those groups and individuals having full and half-day packages should be part of your plan.

3. What will the theme of Spa theme?

What is the theme of the resort and does the spa naturally spin off of that – for instance a lakeside resort would lend to a natural waters theme and beachside to sand and sun, some areas to natural geographies or local ancient and modern healing rituals. The theme of the spa is important to determine early on, as it should influence your design, menu of services and product selection.

The process for determining the theme may be simple and obvious or may require some research. Start with your own property and its theme or existing natural phenomenon, research other spas in your region as to their theme, and surf the web for interesting ideas. One thing is certain, each spa, unless it is a large name franchise, must create a unique position in the marketplace and menu of service offerings.

4. What are the elements of an optimal design for a spa?

A good spa design encompasses a plan that allows for easy and comfortable guest flow as well as, functionality and worker convenience. Whether your space is 3,000 or 30,000 square feet, space planning and design are critical. You must create the right balance between service areas and relaxation and social spaces in order to maximize your revenue per square foot; a spa that only has service areas with no space for relaxation or socialization is really not a spa.

The design esthetic must create a sense of relaxation and renewal while also providing sources of inspiration and pleasure. Luxurious furnishings, fixtures and décor will join with the service menu and services to create a unique experience for your guests. At a minimum, guests must be able to easily find their way around, have privacy for dressing, convenient, secure storage for personal items, and soothing spaces to wait and relax before or after services. Optimizing views of natural features like lakes, local scenery or golf course and access to property features such as gardens, patios or pools should have a significant influence on design. The design should have special consideration for sound; keeping “social” services such as nail and hair services separate from “quiet” services like massage and skin care, excellent sound insulation, floor covering in common areas that absorbs sound and ceiling treatments that moderate sound transference.

The space should also be designed for worker ease and support, for this will impact the quality of service provided to the guests and the productivity of the worker. Each treatment room (massage, facial or other body service) should have ample room for the technician to move about easily, have ample storage for equipment and supplies. It is not relaxing to a guest to be in a cramped room with a countertop full of products and equipment. Plan your space based on the services you define in your menu and the related equipment, so that to the extent possible, everything can be ‘behind closed doors’ and brought out for use as needed. Technicians that work in cramped or inconvenient rooms often find it difficult to give their best service and may feel more drained from the service and less able to serve a number of guests in succession- making them ultimately less productive than those that work in more favorable conditions. When using laser and light devices and even some basics such as facial steamers and hot stones, heat can be an issue, ventilation and airflow should be considered so that optimal temperature for the guest and the worker can be maintained. By law flooring in all service areas must be able to be sanitized routinely; however, there are new materials that can provide both relative comfort and support to the technician, caring for their feet, legs and back, and be easily cleaned for sanitation purposes.

Often when a spa is poor performing, the design is a major contributing factor. Finding an architect with sound spa experience or contracting with a consultant to work with your designer can save you much more than the ultimate costs of poor design.

5. How do we determine what menu of services to offer?

Developing your menu of services goes hand in hand with other elements of spa theme and design. Some services are basic such as massage, skin care, nail services and body services (as wraps and scrubs) and appear on every spa menu. True spa, for the name spa comes from the Latin sancta per aqua, or healing thru water, will offer some water based treatments – hydrotherapy, vichy shower or even simple soaking tubs or rain showers. Based on the area and expected guests, you will want to determine whether you will include any hair services – often a request of wedding parties. The basic services will be further developed and defined based on the products you select for use in the spa. Based on the theme of the spa you will need to develop signature services that offer something special – indigenous healing arts such as Thai or Balinese massage, aromatherapy based on the horticulture of the region, or specialized treatments based on signature products.

Together with the spa theme, product selection also drives the menu. Primarily the products selected must be high quality and deliver results. You want to ensure that most of the products you use in the services are also available for purchase by the guest. Retail should be a significant source of revenue and you should select products based on their retail potential. Quality products come in a wide range of prices; you should consider your cost per treatment as well as your market demographic and focus on things that will be easily sold. Is your target market more likely to spend $35 for a cream or are they comfortable with $75? Sure, you have more profit in the $75 but not if it does not sell. Look for products that are in sync with your theme – you would not select products with an Asian theme when your spa has a decidedly French flair and vice versa.

6. How do we determine what equipment is needed?

Once again, your theme and menu of services will go hand in hand with your equipment selections. If you will offer water-based services, determining the kind of tubs and showers will be critical. For basic services, you should plan for the best multi-function, electric spa tables your budget will allow– such tables will give you the most flexibility in using your service spaces, so that spaces my be used for massage, facial or other treatment- giving each space optimized capacity for revenue generation and overall ease of use for the spa. Additionally, such tables are the most ergonomic for technician use. This is one area of the budget that should get priority.

Other standard equipment includes steamers or multi-function facial units, magnifying lamps, hot towel cabinets, hot stone heaters, technician stools and sanitation equipment. Some states now require medical grade autoclave units for sterilizing nail and facial tools. Additional equipment for skin and body treatment such as microdermabrasion, LED, lasers, light and RF devices, should be determined based on your market and the laws of your state governing the use of such devices. While services with these devices can be quite profitable, most require a trained professional and some require physician oversight or direct supervision.

7. How do we manage and staff the spa?

A part of the planning process should be to determine whether you will mange and operate the spa yourself or if you will contract it out to a firm. Both are good options, once again, depending on your vision and how the spa will integrate into the resort. If choosing to manage yourself, finding an experienced spa director will be necessary; while a service industry, the spa is a very different service delivery effort than food and beverage or some other guest services.

Spa staff is becoming increasingly available in all US markets. You will want to develop protocols and standards specific for your resort spa, train your staff well and keep a focus on premier service delivery. Implement a compensation system that rewards productivity, sales and quality service.

If you are considering the addition of a spa, you can look forward to a creative process of development and if done well, revenue and profits for the resort.