Spas & Health Clubs

That healthy feeling

Spas, associated only with resort hotels earlier, are now becoming a fixture in city hotels as well. Bhavika Jhaveri finds out more about the therapeutic experience

The Oberoi Udaivilas spa

Since time immemorial, hotels across the country have relied on the West for ideas. Even a concept as Indian as ayurveda was restored by hoteliers, thanks to the discerning West. Or for that matter spas. Worldwide, spas have gone from nice-to-have amenity to an expected service in four- and five-star categories. In India too, the spa mania has become the flavour of the season as the trend is slowly and steadily catching on. Health clubs or spas in hotels are as important as room service or an F&B outlet.

Spas, once upon a time, were merely considered as being a whirlpool or a jacuzzi. In fact, they were rather regarded as cost centres instead of profit centres. But that is slowly changing; they have gradually managed to evolve as a necessity not only for resorts but for the luxury hotel segment as well. More and more hotels are fine-tuning their spa services in response to increased guest demand. With that, competition has become tougher and the economics of the spa business are slowly showing change.

Illustrious industry

Spas are not only big business; they are an industry by themselves, one that is growing at a geometric pace. Ashok Khanna, managing director of Ananda Spa, says, "Lifestyles are becoming more stressful, leisure time is increasingly more difficult to come by and the result is a poorer quality of life and more health problems. People are therefore looking for newer ways to relax and rejuvenate. I think this has been the biggest driver of the growth of spas in the country."

One of the reasons for this surge is the booming medical tourism in India. Professionals in the spa business now are qualified and attuned to international trends thus bringing in similar experiences to global travellers. India being a business destination, international travellers are on the lookout for recreational activities, thus encouraging hotels in India to offer a wide range of services right from cosmetic and anti-ageing treatments to wellness therapies.

Specialised spas like Ananda in the Himalayas, Angsana Resorts & Spa, Golden Palms or the spas of The Oberoi group have created a niche in providing the spa experience in its actual form. In Kerala, too many spas are trying to stitch the ayurveda element into the outfit. In a recent study by the London-based travel and tourism magazine Condé Nast Traveller, Ananda Spa was ranked as the top destination spa worldwide. Another Indian brand, Sereno Spa located at Park Hyatt Goa Resort & Spa, was also named in the top ten overseas hotel spas worldwide by the Condé Nast Traveller Readers' Travel Awards 2006. This merely underlines the fact that India is a growing market for spas.

Business hotels cash in

Trying to cash in on this new trend, many business hotels in India are integrating full-fledged spas on their premises. Kick-starting the trend is Indian Hotel Company (IHCL) that rolled out Jiva spas across its twenty-three properties, The Park Hotels that introduced the 9,000 square feet Aura spa in Chennai and which will be added to each of its properties. Another addition is Sarovar Hotels & Resorts that tied up with Sri Lankan Sanctuary Spa to manage and operate its spa at the Poovar Island Resort in Kerala. Speaking about this is Anil Madhok, managing director of Sarovar Hotels & Resorts, who says, "Spas in business hotels are in vogue and much in demand by the well-travelled guests. But given the space constraints we will see spas approximating 6,000 square feet in business hotels." The hotel company is also looking to introduce a spa in one of its properties in Rajasthan this year.

Explains Bina Patel, co-general manager (Spa Division) at Taj Hotels Resorts & Palaces, "Business travellers are looking at wellness as an integral aspect of their stay and Taj business hotels offers both aspects - health and food. A hotel having a spa with large facilities like a relaxation lounge, cold and wet areas with different kinds of therapies, yoga and meditation and extended gyms with cardio and strength equipment, have emerged. We have begun to take comfort to a deeper level of rest and repose."

Taking it a step further, hotels opening spas have seen a change in trends both in terms of volume and size as well as the entire experience. The design and ambience, the staff, all are aimed at relaxing the guest. Speaking about how this trend has changed over the years, Pradeep Kalra, vice president (sales and marketing) at Sarovar Hotels, says, "Choosing a treatment is the only taxing thing guests have to do as the array of treatments is large and impressive. The trend has changed from basic therapy to an entire experience."

Spa-tial profit

Though spas are in their infancy stage in India, they can be a definite revenue generator for a hotel considering the rising demand. So the question on everyone's mind is 'How do I make sure my spa is profitable?'

This depends on whether it is a hotel resort with a spa, a day spa, or a destination spa. There are several other variables involved such as cost of land, the number of rooms, kind of facilities offered, etc. K B Kachru, executive vice president for South Asia at Carlson Hotels Asia Pacific, reckons, "It is becoming trendy to have a spa or a night club on the premises. However, unless the spa/gym has local membership, it is not really a revenue spinner in a big way as maintenance, equipment and manpower are major costs." Other significant expenses include the cost of merchandise and clothing, laundry and dry cleaning.

Additionally, the location of the spa and its surroundings make a lot of difference to position this product. Taposh Chakraborty, president of Chancery Hotels, explains, "A product offered in an exotic location would always fetch a higher premium over a non-exotic location. A regular ayurvedic massage with steam can cost around Rs 300 in a local centre, whereas in a spa attached to a resort hotel with an exotic surrounding may cost around Rs 2,500 plus taxes. Roughly, a 10,000 square feet high-end spa in a five-star resort close to a major metro may generate between Rs 15 to Rs 20 lakh per month. In fact, a spa for a resort is a great complement for higher occupancy and higher average rate. It is not just a value-add but also contributes to the RevPar and GOP." Kachru adds, "With the tourism industry is booming in Asian markets, the percentage of leisure and business travellers is likely to increase by not less than 30 per cent yearly and so is the demand for spas. It's a very viable proposition as it helps in positioning a hotel in a premium segment."

An out-and-out source

Hotels are often faced with the dilemma of whether to manage their own spa or outsource it. Many hotels like to take control of the facilities to make sure the guest experience is in line with the brand. In order to gain a competitive advantage, many hotels are tying up with international spa brands. Hotels have also begun to brand their own spa concepts and standardise their services.

Oberoi’s spa by Banyan Tree at Wildflower Hall, Shimla

For instance, the Oberoi tied up with Banyan Tree, the leading spa operator in Thailand. It supplies the therapists but the hotel chain manages the spa. According to the hotel group, the arrangement works very well as it has access to a pool of well-trained and highly professional Thai therapists. Its spas at the Oberoi hotels in Mumbai, Delhi, Jaipur, Udaipur, Agra, Ranthambore and Wildflower Hall have all been accorded 'Leading Spas' status by The Leading Hotels of the World.

Speaking about developing its own spa brand, Taj Hotels Resorts & Palaces has developed its own Jiva brand. Remarks Patel, "The key is to develop in-house expertise, which adds great value to the hotel brand. It not only makes you a leader as a hotel operator but also profiles your services as a wholesome one-stop shop." It's important that the spa be managed by people who know and understand the concept. So whether it's outsourced or run by a hotel, the key point is that the spa should be managed by people who have a deep understanding of the concept and recognise the expectations that customers have from it. Khanna says, "If you are running a spa claiming that it focuses on the total well-being, then you must understand what well-being means. You must understand the age-old wisdom of wholeness promoted by yoga and ayurveda."

By outsourcing the operations, the hotel would have an operator who is responsible for the profits and losses while also maintaining the SOPs (Standard Operating Procedures) that the chain develops. Giving the advantage of having an international affiliation, Nawabzada Omer Bin Jung, managing director of Prestige Leisure Resorts, which developed the Angsana Oasis Spa & Resort, opines, "Most hotels that tie-up with international spa companies do not have the expertise nor desire to run spa operations. They outsource it because it's not their core business. More than the brand, it is the quality of the offering that differentiates one spa from another. If the service is international then the branding helps automatically. International people feel more comfortable when they see a recognised spa operator because they are assured of a certain standard of service.

Metropolitan Nikko Delhi, slated to open its spa early next year, will be joining hands with an international spa management company to manage its spa. Vipul Gupta, its director, says, "The majority of our clientele is international. A spa has now become a necessity in any luxury hotel. It would be a full service spa including a gymnasium and beauty salon. Treatments would include Asian, European and our very own ayurveda."

Opportunities beckon and abound

Taj Exotica Goa’s Jiva spa

Citing the growing popularity of Indian spas, many of the indigenous brands are venturing abroad. After Taj taking its Jiva brand to Mauritius, Ananda is in the process of setting up its first international spa in Mauritius, which is expected to be operational by December this year. This may mark the beginning of a new trend where Indian spas are looking at going global even as international spa brands are being roped in for joint ventures in the country. Khanna reveals, "We are keen to take the Ananda brand to places like the Mediterranean, Moscow, the US and a few other places but nothing has been finalised yet. We want to have five to seven destination spas across the globe."

While treatments are a spa's bread-and-butter, easy revenue generators such as retail, open to non-residents, spa cuisine and extra elements, such as water therapies (saunas, plunge pools, etc), are non-labour intensive ways to drive profits. Spas opened to non-residents can be a source for an alternative revenue for the hotel. Few spas have membership programmes while a few also run special offers and promotion for non-residents such as Woman's Day spa package, Valentine's hampers, etc.

Retail is an essential part of the equation at Bliss, the trendy New York-based spa concept by Starwood Hotels & Resorts Worldwide, acquired last year to incorporate into its select W brand hotels. While Bliss previously had only standalone spas in New York and London, it has had an extensive retail product line and successful catalogue business for years, making it a well-known brand with W's clientele. And while it is exclusive for W, Starwood is leveraging its new business division to bring the Bliss-developed Remède product line and spa brand into its St. Regis hotels as well. Hong Kong-based Langham Hotels is planning to follow a similar strategy with its Chuan Spa. However hotels and resorts need to adopt a more matured approach to drive the business. They have to have their marketing tools in place and look at spas as a revenue area with a complete audit on a monthly basis, keeping a check on quality as well as meeting international standards and norms.

Rapid growth in the popularity of resort and hotel spas and the increase in its departmental revenues is the first step toward its future success. With an increase in baby boomers, significant disposable incomes, people focused on living a more luxurious and healthier lifestyles, the spa industry is poised to permeate other aspects of our daily lives.