Penny Wise, Pound Foolish
By Brian Lombardi and Doug Chambers – BLU SPAS
5 Reasons Your Next Spa Project Needs to Start With a Spa Consultant
Most of us have heard the expression “penny wise, pound foolish” and it’s a great idiom to describe the short-sided rationale behind some developers’ reluctance to use a spa consultant when planning their spa.
Not taking the time to hire a spa consultant in the initial stages of spa development could cost your project time or money and most likely both.
Here are 5 reasons why hiring a professional spa consultant at the beginning of your spa project can limit potential problems, increase your profitability and offer valuable input throughout the process.
#1 All spas are not created equal
In today’s competitive spa marketplace, a successful spa project should start with an overall concept tailored to serve an identifiable clientele base and to advance specific business objectives.
Too often, triggered by the understandable goal of minimizing overall development costs, spa projects barrel forward, skipping any investment in market analysis or feasibility studies. For most of these projects, the spa concept is reverse-engineered, seemingly as an afterthought with fingers crossed that “if they build it, guests will come.”
An experienced spa consultant can identify the probable client base and its demographics and ethnic/cultural sensitivities and use this information, along with a consideration of location, climate and environmental impacts, to hone a strategy and concept that will best fit the project and attract a viable target client base.
It’s not enough to just have a spa as part of your development project; the trick is to have the right type of spa designed specifically around your particular property and clientele needs.
Blu Spas Case Study
Often the lack of this critical stage in planning can be seen in the mix and quantities of treatment room types. We’ve been retained to evaluate and remedy underperforming spas that were utilizing only a small fraction of their treatment rooms; some of their specialized treatment rooms were used only a small handful of times each year.
For these spas, it was apparent that no or little effort had been made to create a spa concept rooted in the realities of their market or based on realistic business objectives. Instead, an arbitrary spa footprint had been designed to maximize an arbitrary number and mix of treatment rooms.
On other projects that were sized correctly, we’ve seen similar crippling missteps caused by a lack of attention to the demographics of the spa’s client base.
For example, we were assisting an underperforming spa in an urban hotel with a loyal guest base, mostly comprised of business travelers, predominately male. Ignoring these variables, the spa concept and programming largely ignored male-centric services and offerings or features that would resonate with business travelers.
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#2 Innovation – The secret sauce
Savvy spa consumers are no longer satisfied by basic pampering and ordinary massage treatments, even though, statistically, massage remains the most demanded treatment. They’re more sophisticated and educated, wanting an overall holistic approach to health and well-being. In order to distinguish your property from its competition, it’s important that your spa project stay at the forefront of innovation and creativity to keep up with spa consumer expectations.
By understanding the business vision set out in the early stages of development, professional spa consultants can craft unique program offerings, and create highly customized wellness treatments and personalized service packages which can differentiate the spa property from its competitors.
Equally critical for the receptive developer, spa consultants can, through the concept and design process, introduce innovative features and guest experiences that can drive revenues and improve overall profitability.
An innovative spa design can also carry over to the retail side of the business. By creating sensual sanctuaries that stimulate mind, body and soul, consumers are more inclined to take that experience home with them in spa product offerings.
Blu Spas is at the forefront of innovation
The types of innovations we’ve introduced over the years necessarily vary widely and are specifically matched to the unique characteristics of each property. Simple examples include creating social zones within the spa that lend themselves to broader revenue drivers, including integration of food and beverage or mini-services, or signature treatment spaces that offer flexible programming opportunities.
#3 Green Design – Make the competition green with envy
In a recent article from Hotel Executive, Dr. Judy Singer writes
“ Going green is not a trend…it has a life of its own that continues to grow and gain momentum. This phenomenon is becoming so prevalent that people are moving away from the term “green” and have embraced the larger concept of “sustainability”…”
Dr. Singer goes on to explain how spas went from being trendy to being on-trend as more businesses and corporations are now engaging in green design and the sustainability culture.
Incorporating green design at the genesis of the development project helps ensure that the spa facility will be sustainable, practical and timeless while also creating something extraordinary. Such green design ideas include:
- working with natural elements and native features
- incorporating indigenous landscaping and craftwork
- planning for natural light and shade
- featuring recycled and reclaimed materials
- taking advantage of the growing options for water conservation and energy-saving alternatives
- using organic fibers and eco-friendly materials
Working with a spa professional experienced in green design will help you evaluate the cost/value ratios to run a profitable spa with an environmental conscience.
Blu Spas Can Help Your Spa Go Green
With the range of new products, services and technologies focused on sustainability now available and being introduced almost weekly, this is an exciting time for green development of spa facilities and operations. Most of our recent projects demand some level of commitment to sustainability, with a notable handful willing to make sustainability a primary design and operational directive.
#4 Spa Data – The matrix of metrics
It may not be the sexy side of the spa business, but understanding key metrics and analyzing data points are the new trends in the spa business and are key reasons to work with a spa professional.
Developers, investors, owners/operators and vendors all need accurate financial data to make critical decisions about the spa’s prospective performance compared with other spas in the industry and to put the spa’s overall financial contribution to the main business property in the proper context.
Look for a team experienced in both spa operations and financial analysis in order to help your spa make strategic decisions to become a profit power player.
Blu Spas Provides a Financial Action Plan
While providing financial forecasts is frequently part of our scope of services for projects and an important step to inform design and project planning decisions, we’re often retained to examine underperforming spas. Through this process, which necessarily includes scrutinizing the finances of the operation and comparing them to key metrics, we are able to zero in on those issues that dilute overall profitability and provide a concrete action plan to resolve weaknesses and bolster strengths. Common weaknesses include flawed compensation models, pricing inconsistencies and overly broad or misdirected menus.
#5 Communication | Can You Hear Me Now?
Let’s face it, customer relationships are ultimately the deciding factor of a spa’s success. All of the design, concept and research points are useless if your customer service and staff relationships are lacking.
Professional spa consultants understand firsthand that the spa experience is only as good as the guest’s experience with the spa staff. By working with a spa professional before the grand opening, a communications platform can be established that builds and nurtures ongoing relationships with guests before, during and after their time on the property.
To foster positive interactions between guests and staff, spa consultants offer customer services training, professional development, customer feedback points and employee incentive programs.
Implementing a strong communication plan, in the beginning, will set the right culture and environment for a successful and profitable spa.
Blu Spas offers a broad range of services that can be tailored to meet the specific needs of your project. Have questions regarding your spa project? CALL US!
