The revenue-generating potential of spa treatments can be partly attributed to their role in filling a void for personalised human attention that properties now lack where they have streamlined their procedures and services. Also, spas have begun to individualise their spa offerings to establish a signature reputation—in effect building a recognizable ‘brand’. Hotels have begun to brand their own spa concepts and standardise their services across properties in a chain. Hotel companies such as Fairmont, Hyatt, Marriott and Starwood have already established a consistent brand identity for their spas within their properties.

The alternate way of gaining a competitive advantage is to bring in known spa brands, as in Wyndham Hotels’ acquisition of the prestigious Golden Door spas. Wyndham, as opposed to building a spa brand of its own, acquired the rights to the Golden Door brand when it purchased the destination spa of that name in Escondido, California in 1998. Wyndham hotels were banking on the reputation of Golden Door spas to help build its brand reputation, to complement that of the hotel. For Wyndham the acquisition was less about pursuing growth and more to do with the wellness trend: consequently the hotel chain could increase their product offering with this alternative property enhancement.[1]

Hyatt Corporation was the first upscale resort company to commit significant resources to this fast-growing trend, recognizing the growing numbers of spa visitors worldwide. They currently offer over 40 spas as part of the portfolio of ‘Hyatt Pure’. This company may have acquired first-mover advantage in the market by fashioning spa designs that incorporate local culture and resources, creating a truly indigenous and unique experience for guests. Additionally, Hyatt actively follows trends in the industry, evidenced in part by their inclusion of services designed for youth at several resorts, as well as Hyatt’s first medical spa in California. Ultimately, confusion can arise from over-branding. Toronto’s award-winning spa, for example, appears to bear two names—that of Hyatt Pure, as well as the more recognised Stillwater spa.

However, the actual concept of offering signature treatments rooted in local heritage is not unique to Hyatt, and is a strategy being actively pursued by resort spas. They are trying to differentiate themselves with signature treatments that also help build brand identity and loyalty. For instance, treatments like the chocolate baths offered in Hershey, Pennsylvania or outdoor yoga in Hawaii, serve as memorable experiences—precisely what service providers are aiming to accomplish.

Equally important is adapting treatments to spa locations. At Canyon Ranch, which had traditionally focused on health-and-medical offerings, they adapted these at their new Vegas location by targeting those seeking a brief respite from the frenetic pace of Las Vegas. In the past decade, few world-class casino destination resorts have been built without at least a modest spa. Multi-billion dollar casinos, however, sport spas that compete in amenities with the most complete and luxurious available anywhere in the world.

The term ‘hybrid spa’ has several meanings in contemporary literature. It refers to the incorporation of features of the destination spa in a resort setting, coupled with popularity among the locals. The unique advantage lends itself to superior yield management since the local market can compensate for a lack of resort-spa business. Also, a hybrid spa is a blend between the best features of a resort spa (‘amenity’ spa) and those of a spa resort (‘destination’ spa). It combines guest expectations to feel good and look good, with a life-altering experience expectation. Both definitions, however, include an approach based on flexibility to maximise the appeal and utilization of the spa.

Those spa resorts, whose origins can be traced back to the infancy of this industry, are trying to capitalise on this growing market segment coupled with the strong names they have created for themselves. They are targeting non-core spa-going individuals in non-traditional satellite locations (Canyon Ranch and Golden Door spas, for example). The challenge then becomes maintaining the integrity of the original brand, while expanding product offerings to appeal to the 80-percent of the potential spa market that so far has been overlooked.[2]

In North America’s fast-moving culture, there is a never-ending quest for increased energy levels—a quest for which research now suggests destination spas may be a partial solution. A study in 2004 indicated that visiting a destination spa leaves vacationers feeling refreshed, rested and energised and—notably—even enjoying increased business acumen.[3] Once considered a luxury, destination-spa vacations are demonstrating their role in a healthy, balanced lifestyle. Key findings of this original quantitative study suggested improved agility, body image, fitness levels and a propensity to exercise enthusiastically.

The ability of spas to contribute to stress reduction will become increasingly critical. The American Academy of Family Physicians, for example, estimates that 60 percent of all doctor-consulted problems are stress-related. In financial terms, it appears us corporations lose approximately $150 bn annually to stress-related disorders.[4]

Destination spas in particular, with their strictly regimented diet and exercise routines, are attracting many executives who fear stress burn-out or premature health consequences from their hectic lifestyles. Regardless of location or tailored program, the objectives always remain better health and self-improvement. Overall, however, it is medical spas that are seeing the highest visitor numbers by executives. Hoping to detect any potential health problems early, these individuals incorporate heavy doses of pampering as well into this healthful vacation.

References

1. In August 2005, the Wyndham Group was sold to Blackstone, a private equity firm. The Golden Door along with The Boulders Resort & Golden Door Spa in Arizona, The Peaks Resort & Golden Door Spa in Colorado and El Conquistador Resort & Golden Door spa in Puerto Rico then became part of LXR Luxury Resorts & Hotel (www.luxuryresorts.com), a collection of properties owned by affiliates of Blackstone Real Estate Advisors. The brand will soon be augmented by the opening of a new Golden Door spa at the Naples Grande Resort & Club in Florida.
2. P Johnson ‘In the blossoming land of manicures and men’ Club Industry’s Fitness Business Pro 21 (3) 2005 p 31
3. M Tabacchi Adding a spa? Think about this! (2006) Retrieved February 26, 2006 from http://www.resort-recreation.com/
4. F Verschuren Spa health and wellness tourism: A new product portfolio at the Canadian Tourism Commission (2004) Retrieved April 17, 2006 from http://www.canadatourism.com/