Spa experts warn against use of discount websites

Middle East spas must be careful about enrolling in popular discount and voucher schemes warned panellists on day one of the Hotelier Middle East Spa and Wellness Summit 2014.

Speaking on a panel about providing value, which was moderated by The Product House  founder and managing director Janette Gladstone-Watts, spa managers from various properties in Dubai agreed that spas should consider factors such as demand and identify target clientele before signing up to such schemes.

Cleopatra Spa & Wellness spa manager Beverley Spencer said: “Discounts on services have a time and a place; you can’t use them all the time because at the end of the day it can affect the value of your brand.”

The panel also addressed the growing trend for coupon websites, which offer heavy discounts in spa services.

“I think it is worldwide, it’s not just Dubai – the whole world is giving offers on various things. The advantage is they create some sort of awareness during off-peak times, so I would use some sort of discount or promotion,” said Spencer.

Grosvenor House, Luxury Collection Hotels and Le Royal Meridien Beach Resort and Spa complex director of spas Galina Antoniouk, admitted that her hotels had tried such promotions, but eventually had to stop as they failed to produce sufficient revenue.

“We went down that route and we were offering some spa services through the promotion websites but then we had to stop because the type of guests coming in did not match our profile so you have to prioritise because it might make it more harmful and you lose your other guests,” said Antoniouk.

“Of course during off peak season you have to find a solution; you have to decide how much discount you give – do you give 50%, do you give 70%? At the end of the day you may end up spending more than you gain and it might be better to send all the staff on vacation,” she added.

Hilton Worldwide director spa operations & development Middle East & Africa Sharon Barcock was also critical of discount websites.

“The days of the two for one and the Groupon are long gone. We've all learned the hard way that it produces volume, but doesn’t necessarily produce the revenue,” she said.

Antoniouk said her hotel's now focus on attracting repeat customers by rewarding them for their loyalty.

“I think the best thing in this case is something like a loyalty programme, where they get one free treatment after they have finished five treatments or something like that, so that people feel valued,” she said.

Barcock, however, believes it all comes down to knowing the market you are trying to attract and setting the right price from the beginning.

“I think you need to be very aware of the market and be a bit more structured in saying ‘this is the menu, this is the price.’ You need to be very aware of who you are trying to attract – is it a hotel guest or an outside guest? What market do you sit in? Are you in an area where guests have a whole day and to want the full experience or do guests want to be in and out after a quick massage? If you set your price correctly from the very beginning, that alleviates some of the problems you may have,” she explained.