Dollars from Spa Design

 

Cary Collier and Doug Chambers • Blu Spas Inc.

Spa Design & Profitability

Like most disciplines, the end goal of spa designers is to deliver a product superior to that which may be achieved in their absence.  And, like other disciplines, there’s a great deal of ambiguity in determining exactly what a “superior” product is.  While most of the yardsticks, such as beauty, distinctiveness, brand compatibility, and the like, in this realm, are fairly subjective, one of the more meaningful measurements should be the ultimate profitability of the spa.

During the design process, as we wrestle with the balance between aesthetics and ultimate ROI for the spa, we scrutinize a broad range of factors, some of which may be unique to a particular property and some of which may be deemed, either by the realities of the property or by the owners, or other restrictions, as non-negotiable absolutes.

And, we have several key directives to ponder – such as:

• More revenue spaces will prevail in spa design
• The cost to build spas is forcing more efficiency in design layouts
• However, the layering of ‘memorable experiences’ must not be lost
• Regardless of how well we promote the benefits, the cost of ‘mind, body, spirit’ has to be affordable for more market segments

Here are some of the considerations made during the design process most likely to impact ultimate spa profitability:

Responsiveness to Market.  While seemingly obvious, one of the shortcomings of many spas is the mismatch between the facility design and their market’s demand.  Some of the key factors to consider on this topic include understanding the property’s guest profile/guest mix and expectations, favorable pricing strategies, average stay, overall location economics, and therefore, likely capture rates for the spa.  Careful consideration of these issues can help to avoid oversizing of the spa and the inclusion of features or treatment room designs unlikely to be highly utilized by the spa guests.  Simply said – do the numbers first, then design.

Optimal Mix of Profit-generating Space.  More creative thought has been focused on rethinking the dollar-generating spaces in spas. For example, current designs for locker rooms, which have traditionally eaten up a great deal of space but are not directly productive of revenues, include dramatically re-configured or unorthodox designs, the absence of traditional lockers, or the transference of the locker room function to treatment rooms.  Similarly, some of the current design trends for waiting areas and relaxation lounges include revenue-generating features or functions, which may be staff-assisted or self-directed services.

Profitable spas balance spa design and market demand. Simply said – do the numbers first, then design.

Attention to Retail.  Spa design must treat the retail component as a critical function of the spa and optimize the functionality and effectiveness of the retail space(s).  In addition to the significance of the placement of the retail functions, the variance nuances impacting the attractiveness of this space, such as lighting, display, staging, music…those considerations impacting the senses…will have a meaningful impact on the retail sales.

Smart Green Design.  You really didn’t think you were going to read a design article without a reference to ‘green,’ did you? One of the design mantras of our company for almost twenty years, is “create sensory sanctuaries that are in harmony with the culture and location.” Ignoring for the moment the consumer demand and marketing value of a spa’s commitment to ‘green,’ the snow-balling interest in green development has created a growing number of options, more affordable and more varied than ever before, on how to include more environmentally-conscientious solutions in spa design.  These options may include everything from MEP systems to materials and finishes.  While practical solutions will vary from property to property, there’s mounting evidence that these solutions can have a meaningful impact on reducing long-term spa operating expenses.

Certainly, guests and residents of hospitality projects continue to grow the demand for spas in wondrous variety. Spas have proven to be friendly allies to hotels and resorts.  Spas have a noble purpose – to provide a haven of peace from what is outside those spa doors, a place to take time for yourself and be cared for and to simply make people feel good.

Increasing spa culture is a reality and that’s a good thing.