Session

Spas and luxury resorts

A telling fact underlining the importance of spas in luxury hotels today was pointed out succinctly by the moderator of the session Ingo Schweder, MD of Spatality. "After the rooms division, the second most profitable division should be the spa division," he said, quoting from a study conducted by Smith Travel Research that there is a US$ 76 difference in room rates in a hotel with a spa vis a vis a hotel without a spa, with the former commanding more.

"Today the penetration of spas is a mere five to 10 per cent. There are vast opportunities out there. In fact there is very little development in the four-star and five-star segment without a spa," he stated because of the higher profit of almost 40-60 per cent.

Throwing open the panel, Parineeta Sethi, publisher and chief editor of Asia Spa India, spoke of the trends in the segment in India. "Three years ago it would have been hard to pinpoint any clear-cut trends in the Indian market. Today it is not so," said Sethi. Day spas, medical spas, focus on quality therapist, a deeper understanding of wellness as a concept, detox and weight loss in a luxury environment, luxury real estate projects with spas, mobile spas, spa holidays with a corporate focus, spa parties, and more importantly an expansion in the user profile too are the trends. "Today men are going to spas and are spending money. Spas here are more women-centric and their focus should include men too," she added. Richard Dusseau, managing partner and president of Spa Strategy, said, "The cost of construction has increased substantially and the scenario is much more competitive than what is was earlier. Today hotel companies are developing spa brands with a DNA exclusive to them, or alternatively, are going with third party brands." But setting up a brand is only the first step. Selling it commands a completely different strategy. Says Mark A Edleson, president of Alila Hotels & Resorts, "Hotel marketing doesn't include driving your spa, which should be positioned appropriately for a hotel. In fact, 95 per cent of the business comes from in-house guests.”

Michel Van Der Hoeven, VP (Development), Anantara Resort & Spa, said that apart from capture rate, the average spend and the time spent in the spa was important too. In conclusion, Schweder said, "Spa is a simplistic definition for a broader and more complex industry. We shouldn't take one-size-fits-all approach. There is a need to customise and to brand the spa to maximise the yield."