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Diary Highlights
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08 May 2013
SPATEC Europe show review
More than 160 spa professionals gathered at Ritz-Carlton’s Abama Golf & Spa Resort in Tenerife this April for the seventh SPATEC Europe forum. Over the course of two days, 1,500 face-to-face, 20-minute meetings were held between those running, consulting and investing in spas and suppliers ranging from software firms and steamroom manufacturers to table, tanning and linen providers.
While representatives from the UK made up a large proportion of attendees, there was a significant contingent from mainland Europe – notably from emerging spa markets such as the Balkan region. International delegates came from as far afield as the US, Dubai and Thailand.
In an opening Educational Session, chaired by management consultant Berni Hawkins of Neue Media, delegates heard about key industry research, trends and opportunities from four panellists. We’ve highlighted some takeaway points below.
PUBLIC SECTOR SPAS
Sarah Watts, managing director of Alliance Leisure – which works on UK public leisure developments – spoke about the emergence of public sector spas in the country. “There are 15 local authorities in the UK which are looking to install big-scale spas,” she said. “This is a big growth area and presents suppliers with a huge opportunity and may enable operators to learn something new.”
Notably, these types of spas are delivering in revenue. Inside Spa, one of the first UK public sector spas which opened at Pendle Wavelengths leisure centre in 2007 (see Spa Business magazine 07/3; p64), generates £500,000 (US$776,750, €792,600) a year purely on a ‘pay as you play’ basis said Watts. A formidable achievement given that it’s located in Nelson, a town with a poor demographic, in Lancashire, north England. With affordable prices – a 55 minute body massage costs £46 (US$85, €65) – it’s also introducing new customers to spas. It’s also performing better than other leisure sector elements such as a standalone swimming pool or a sports hall which typically brings in only £70,000 (US$108,750, €82,950) a year.
She attributed the spa’s success to two factors: “Over the last few years the celebrity culture and lipstick effect have really played into the public’s hands. A lot of our clients are very aspirational and want to use the same face cream as the stars. So that’s brought them into the spa and now it’s our job to demystify the rest of the offering via education.”
HOTEL SPA TRENDS
Following the launch of Hilton Hotels Emerging Global Spa Trends research last year, Louise Moore, the company’s director of spa operations and development in Europe, emphasised some of its top findings.
Firstly, she said: “Hotel operators worldwide are increasingly realising that spas can actually influence hotel bookings. The presence of a spa means there’s an immediate assumption that a property is more upscale.
“In our survey, 45 per cent of respondents said a spa was an important factor when booking. In addition, statistics revealed by Smith Travel Research show that luxury hotels with spas [in the US] increase their RevPAR by 10-11 per cent, their ADR by US$95 (€72, £61) and their occupancy on weekends by 67 per cent… In some cases spas are even outperforming other hotel departments like food and beverage.”
Secondly, Moore championed the male spa-goer as a real emerging marketing, putting paid to the assumption that spa customers are overtly female – “it’s simply not true”, she said.
The key to capturing this market, Hilton has found, is having a no-nonsense approach – “men buy primarily based on facts and results”. And while 80 per cent of men go for massage, they predominately opt for sports/deep-tissue therapy. Yet facials are on the increase, with a 20 per cent up take thanks, in part, to an association between male grooming and career progression. Importantly, Moore said that Hilton’s research showed that men want products and treatments that are theirs, not that are repackaged or reworded from a female line.
She added: “The male market is deeply loyal. When they find something they like, they’ll stick to it – which is fantastic. But they’re also impulsive and don’t typically pre-book: so it’s a challenge for operators to consider how to remain flexible in accommodating that group.”
Lastly, Moore focused on the importance of local spa-goers in a world where hotels can “no longer rely on the custom of hotel guests, particularly in an urban environment.” Forty per cent of survey respondents said they’d be likely to use a spa in their local area if it was linked to a membership. Enticing and keeping onto such clients, revealed Moore, is going to be a key strategy for the Hilton worldwide spa team moving forwards.
ASSOCIATION ANNOUNCEMENT
In the closing of the Educational Session, Charlie Thompson, the chair of the newly formed UK Spa Association took to the stage to talk about the organisation’s future goals.
One key area, he said, would be to work with Habia – the country’s hair and beauty authority – which controls spa sector standards. Significantly, Habia announced in February that it is to develop a register of beauty therapists in the UK to create a national certification framework for spa qualifications and roles for use by employees and employers. It will go live in September and will emulate the UK’s Register for Exercise Professionals which now has more than 30,000 members (see Spa Business issue 1/2013 p74).
Habia is part of Skills Active, which is a channel for government funding in the UK. With this in mind, the UK Spa Association will be looking to tap into a number of resources to help develop the industry.
Another primary target will be to set up a UK spa performance benchmark survey with a promise to gather, analyse and announce the results in time for SPATEC Europe 2014.
There’s a huge demand for UK spa industry statistics and with a full show of hands from the event’s 160 attendees it already has the backing of many sector professionals.
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