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www.expresshospitality.com FORTNIGHTLY INSIGHT FOR THE HOSPITALITY TRADE
1-15 April 2008  
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Home - Management - Article

A spa-cial future

From straddling on the fringes of the luxe hospitality universe to swerving to the forefront of all segments, spas have elbowed their way to become a revenue-generating necessity. By Neeti Mehra

When SpaFinder, a company dedicated to the global spa marketplace, began in 1987, spas as they are known today, were but a handful around the world. Today the scenario is different. According to SpaFinder data, there are now approximately 16,000 spas in the US alone (surpassing even Starbucks!).

There is also a greater variety of spas - destination spas, resort and hotel spas, day spas, medical spas, spas on cruise ships, etc. In India too, spas have moved beyond the definition of two massage beds attached to the hotel's gym and beauty salon, to become complete branded set-ups that cater to more than the epidermis. Scratch the surface and medical tourism, alternate therapies and post-surgery recoveries are revealed. In short, we are witnessing the transformation of a spa from a source of relaxation and rejuvenation to a precursor of a healthy lifestyle.

Integrating philosophies

Speaking of the transition over the past two decades, Dr Komal Shah-Kapoor, director of research at SpaFinder, says, "Each country had its own healing traditions but the term 'spa' was not used globally until about four years ago. Due to the large 'baby boomer' population - a group with time to travel and disposable income - and increasing stress levels everywhere, spas have become a necessary part of life today."

Amidst all this, the symbiotic relationship between spas and hotels and resorts is inescapable. Says Michel Van Der Hoeven, VP (Development) at Anantara Resort & Spa, "From an add-on pampering facility offered by hotels and resorts a few years ago, spas have now established itself as an integral part of any hotel and resort development."

This holistic development is seen across brands that focus on delivering a health and wellness experience. Consider Amanresorts, which was recently acquired by Delhi-based realty major DLF. With an inventory of just over 650 rooms worldwide, this David among Goliaths has a band of elitist travellers known as Aman Junkies, who are devoted to its services. Says a company spokesperson, "We have integrated spa treatment facilities and full service spas into our ongoing resort development. We believe that small and impeccable is beautiful."

In India though the luxury market was synonymous with brands such as the Taj Hotels Resorts and Palaces, The Oberoi Hotels & Resorts and the Leela Palaces & Resorts and it took a while till spas gained steam. Says Ashok Khanna, managing director of IHHR Hospitality, "Luxury leisure travel developed in India after the opening of Vilas, Ananda and Aman properties." He admits that the quality of leisure hotels and resorts before this was mediocre. Thankfully, those days have been pushed to the bottom of a hot tub. The country has shifted gears and spas are gaining momentum. This wellness euphoria isn't restricted to mainstream luxury hotel brands but is percolating to four and three-star hotels too. In fact, even The India Tourism Development Corporation (ITDC) is contemplating adding internationally-managed spas to their properties. A sign of times.

Expanding horizons
SpaFinder spells out certain innovations in the segment:

  • Wellness is a strong trend in both spa and tourism: Since consumers want to be healthier, fitness, nutrition, education as well as alternative practices such as energy medicine, reiki, traditional Chinese medicine, and ayurveda are all becoming important aspects of a 'spa'
  • The recognition of 'sleep' as essential to health and weight loss: Many hotels are offering sleep programmes and several day spas are offering 'snoozing zones'. Many resorts are offering comfortable bedding, sleep CDs, sleep yoga, etc
  • Wellness tourism is growing globally: Spa IQ is growing. Tourists are travelling to experience spa treatments around the world. Tourists prefer to combine exotic tourist destinations with wellness-based or cosmetic enhancement affordable holidays
  • Increase in number of spa rooms: Increasingly, hotels are offering spa services and spa cuisines in their spa rooms. Revenue numbers are showing that resorts and hotels with spas have a higher ADR (average daily revenue) and spa rooms can be marked up. Hotels and resorts with spas tend to be more profitable
  • Design is becoming more important: There continues to be an unspoken competition to build larger, more luxurious dwellings, along with amenities such as private butlers and in-suite spa treatments. While some spa designs are inspired by European designs, others are a combination of traditional and modern traditions
  • Green is in: Spas and spa consumers are getting serious about terms such as 'green', 'eco-friendly' and 'organic'. Consumers are welcoming commitment on the part of spas to contribute to sustainability

Health is wealth

There is an offshoot to this spa profusion - the field of high-tech healing in the form of medical tourism. Soft versions are offered by Devaaya Ayurveda retreat in Goa that has on its plate holistic health programmes with treatments for rheumatism, arthritis, diabetes, spondylitis, asthma and neurological disorders. Packages extend from seven days to a month - a unique facet of Oriental treatments. While ayurveda best represents alternate healing, there are options galore for those who would like a taste of the mainstream. These integrate mainstream medical treatments with esoteric healing programmes. The Leela Palaces & Resorts has tied up with UK-based Globe Health Tours to offer cosmetic tours in India. The packages exclude airfare and include half-board accommodation at the Leela Kovalam Beach Resort, all hospital treatment and aftercare, transport between the hotel and hospital and ayurvedic treatments at the hotel spa.

What is the future of such a holistic health programme for hotels? For promoting medical tourism, a taskforce comprising officials of the ministry of health and family welfare, the tourism ministry and experts in the medical field has been constituted. The future is slick - the market is growing and the approximate revenue of US$ 333 million generated in 2004 is expected to increase at the rate 20 per cent to touch US$ 2.2 billion by 2012. It is time to plough in the profits.

The visitor profile

If spas have transformed from pampering centres to holistic curative outposts, it is the visitors who have necessitated the change - a consequence of abundant experience. Says Shah-Kapoor, "The shift in spas from pampering to a focus on wellness has a powerful effect on luxury spas and resorts in South Asia, where wellness therapies and treatments have their origins."

It isn't only the foreign tourist with oodles of moolah who is rushing to these havens. The domestic traveller is on the move too. Consider this: the most billionaires in the world reside in India - a whopping 36. Says Shah-Kapoor, "The Indian middle-class is also spending more on leisure and indigenous preventive healthcare as well as aesthetic enhancement." According to Van Der Hoeven, spa goers are nowadays more discerning and experienced. He points out that spas today holistically integrate lifestyle, traditional medicine and treatments. These appeal to experience seekers who are keen on treatments that leave a visible impact.

Competing with spa experiences throughout the world leaves no room for a botched massage. This is where the hoteliers come in, be it spa menus, organic food, a stellar wine list or trained specialists from the best institutes. "Travellers are willing to pay top dollar for being pampered. India is no longer a cheap holiday destination and, therefore, the expectations are very high. Guests will not forgive if the resort does not provide an experience that matches the best overseas," Khanna cautions.

So who should the hoteliers be wooing? Adam, it seems. Shah-Kapoor says that men are shifting the demographics of the average spa goer, who incidentally has been Eve. "With the popularity of alternative, non-Western treatments and therapies in the West (like yoga, ayurveda, Transcendental Meditation), travellers from Western countries want to experience those treatments in their country, which is good news for South and South-East Asia," she says. Moral of the story: Go local to attract global. Following this 'glocal' cue, she emphasises that resorts and hotels need to focus on needs of the international traveller. They in turn want to learn about indigenous cultures through local treatments, skincare products, etc.

Cookie-cuttered

Can something that imparts an experience so personal and uplifting be cuffed into a standardised product? According to experts, there is a requirement for differentiation even within a brand. Says Van Der Hoeven, "The design, appearance and concept is increasingly important as a way of differentiating between individual spas as well as spa brands," a mantra that integrates local culture with set brand parameters. This philosophy is reflected in the small yet beautiful philosophy, as seen in Amanresorts and Six Senses Resorts & Spas. Khanna agrees. "People today would prefer an individual world-class resort to large brands that try to standardise their products," he says.

Nevertheless, large brands cannot exclude a spa, standardised or otherwise, from their portfolios. And if the guest doesn't come to the spa, then the spa will come to the guest. Starwood's Westin Hotels & Resorts has launched a new in-room spa programme. The accoutrements? A portable, specially-designed spa bed, spa basket, a flower, a CD containing customised relaxation music, and dark chocolate.

Asia ahoy!

What does this fascination for seaweed wraps and Dead Sea Salt scrubs mean for Asia? Bubbling potential, according to experts. As Anantara Resort & Spa sets its sights on India, Van Der Hoeven avers, "There is vast potential for branded, luxury resorts for a domestic audience with a large (and increasing) and affluent middle class. We believe that there is opportunity to tap the local tourism market within a reasonable distance from some of the main metropolises." Also, affordability and a surge in tourism numbers augur well. But this surge has pitfalls too. Shah-Kapoor says that with the increase in demand of hotel rooms, tariffs too will gradually rise.

Overall, Van Der Hoeven feels that the quality of many domestic resorts is still lacking as compared to other Asian markets such as Bali, Indonesia, Thailand and Maldives. At the same time, the desire for exclusive brands is encouraging. Consequently, luxury brands are lining up. "India is one of the key destinations where we aim a representation for Anantara," he emphasises. Shah-Kapoor concurs. "International brands will make their presence felt in the region over the next few years. We are already seeing the entry of players like Club Med, Starwood and Banyan Tree as well as increased investments from existing players like Kempinski," she says.

The 'glocal' phenomenon is here to stay. "Resort spas such as Spice Village and Coconut Lagoon have already assumed a 'destination spa' feel in their ambience. Several Indian luxurious resorts that have spas will continue to offer unique and culture-specific treatments (yoga, ayurveda) that draw tourists," she adds. Eventually, she sees spa brands investing in real estate to create either destination spas (like Ananda) or lifestyle real estate properties. Spa brands will also associate with hotels as hotels with spas can be potentially more profitable worldwide.

 


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