Spa trends in focus

Spas were considered a luxury many years ago. That has changed now. The number of guests looking to experience spas, whether residents, leisure tourists or medical tourists, has gone up. To match the growing demand of the wellness industry, the department of spas is taking on renewed importance. Certainly hotels are reacting to the demand and looking at improving their offering, revealing new packages and treatments, undergoing refurbishment and much more. In addition, the number of spas — and associated revenue — in the Middle East is increasing.

Intelligent Spas’ released a new ‘Spa Development Pipeline Research’, which has identified 139 spa developments that are proposed to enter the GCC between 2015 and 2019, potentially increasing spa numbers in this region by 27%. In comparison, the confirmed developments will see spa numbers increase to 639, up 19% compared to the number of spas operating in the GCC in 2013.

Julie Garrow, managing director, Intelligent Spas says in a statement: “These are the first country-level research reports which provide the spa industry with an accurate list of reported new projects, plus their current development status in terms of if they are in planning, under construction, on hold or abandoned.”

According to this research, Saudi Arabia has the highest industry growth potential, with spa numbers increasing by 34% by 2018, if all reported developments are completed. Oman’s spa industry is set to increase by 23% between now and 2018, based on confirmed spa developments. And Dubai hosts the highest number of spas in the GCC, with more than 190 currently operating and another 34 spas in the pipeline.

And by the end of 2015, the UAE’s spa industry was forecast to achieve revenues of AED 5.5 billion (US $1.5bn), rising to AED 8.3 billion (US $2.26bn) by 2017, making it one of the most valuable tourism-related industries in the Middle East, with the MENA region the second fastest-growing market in the world for spas after sub-Saharan Africa, according to the Global Wellness Institute (GWI). According to GWI’s 2014 Global Spa and Wellness Economy Monitor report, the UAE will top spa growth in the region by 2017, more than doubling current business volume with 17.9% annual growth since 2012.

To this end, Arabian Travel Market (ATM) 2016 will introduce a dedicated Wellness & Spa Lounge for 25 exhibitors representing some of the world’s most recognised health and wellness hospitality destinations. “In our research we found that across all markets, wellness tourism is exceptionally popular, with in excess of 9% year-on-year growth forecasted for the next two years, which is a staggering 50% faster than overall global tourism,” says Nadege Noblet-Segers, exhibition manager, Arabian Travel Market.

“Wellness tourists spend, on average, 130% more than the average international traveller, which presents significant opportunity for the MENA hospitality industry to target this high profile, high spend market segment with a wide variety of experiences, facilities and products to grow market share,” says Noblet-Segers.

In more research, Colliers International has launched its Dubai Spa Benchmark Report, which was based on data from 216 treatment rooms provided by Dubai spa owners and operators. The report indicates a positive outlook for Dubai’s resort spa market with a 6% increase in treatment revenue recorded in H1 2015 and an increase in in-house guests to 74% up from 67% in H1 2013.

Four Seasons Hotel Riyadh senior spa director Akram Al Kawasmeh agrees and says that this is due to the increasing demand from guests as well as the treatment average rate going up. The hotel’s spa currently posts 4% of its overall GOP.

Al Khozama’s Al Faisaliah Hotel, Riyadh general manager Alexander Blair is more optimistic about spa treatment revenues. He says: “Spa treatments’ revenue increased over the last year by 10% and continues growing. Treatments are no longer a luxury; it is part of an overall wellness plan. With the increase of consumers becoming more conscious about their health and wellbeing, the spa revenue will increase as well.”

A total of 14 key metrics are included in the Colliers report, which are divided into three categories: revenue indicators, utilisation indicators and hotel-related indicators.

Speaking to Hotelier Middle East, Filipo Sona, director - head of hotels, MENA region at Colliers — reveals that this is the launch of the benchmark report, which he hopes to release bi-annually. He adds: “We felt there was an opportunity in the market to increase the awareness of the potential of the wellness industry. One of the things that operators, owners and brands tend to complain about was the fact there was no key performance indicator in the market.”

The study, Sona says, has revealed that there is an opportunity for hotels to capitalise on the strength of its spas. He says one of the important considerations for hoteliers is what return on investment spas will make in exchange for the prime real estate given to it.

Sona explains: “Spas tend to occupy the most prominent part of the real estate in hotels. And because you need to make it accessible as well as feasible, the space required is quite large. That space could be a restaurant or a bar or anything else that could generate much more revenue. However, what it does give to the overall asset is an intrinsic added value and revenue generation.” Sona says that an individual who normally uses a spa in a hotel goes to an in-house restaurant to dine — which provides economic added value. “If you don’t have a spa, not only will you lose the revenue from the spa, but also from food and beverage,” he opines.

Eventually, Sona hopes to extend the study to Abu Dhabi, the other Emirates, and across the wider GCC and North Africa as well.

TRENDS

With the focus in 2016 going to be the spa offering, hoteliers across the region are looking to follow the demands of the guests. Four Seasons Hotel Riyadh’s Al Kawasmeh says among the latest trends he’s noticing in the market include a growing demand for the treatments that incorporate high technology devices, for facials and body treatments. He continues: “The gap between medical spas and regular spas is shrinking as the guests are looking for faster results which are normally delivered using hi-tech devices. Awareness among the clients about the socially responsible products brands is growing and will continue to grow.”

Al Faisaliah Hotel, Riyadh’s Blair also says wellness and preventive treatments are coming into vogue to support good health — ranging from protecting skin and hair from environmental damage to wellness massage packages. “The key interest is going to be on treatments that support health and prevent problems rather than just addressing issues once they become problematic,” he adds.

Al Kawasmeh adds that guests are now appreciating the customisation option for their experience either as a package or a single treatment. Blair agrees with him on customisable treatments, and says the industry will continue to see growth in treatments and services that have a customisable aspect to them.

Kathryn Moore, managing director, Spa Connectors (a global company providing training and recruitment solutions to five-star hotels, resorts and spas in the Middle East, Europe, Asia and Indian Ocean) says that hammams will always play a big part in the Middle Eastern spa scene.

She says: “Locals enjoy the popular bathing ritual weekly, whilst visitors to the region always want to try something local and unique to the destination. Experiential travel is massive right now and travellers globally want to experience the essence of a country. We are seeing more and more hammam brands coming into the market now with some fabulous cult brands such as Mira’s Hand and Charme D’Oriente, producing quality product.”

Anantara Dubai The Palm Resort & Spa general manager Jean-François Laurent said hotels in the market are competing with each other in terms of room product, food and beverage, as well as spas. “We first opened the spa and quickly realised that to remain competitive, it was important to take the spa to the next level. In light of that, we decided to add a Turkish hammam — 750m2, very traditional.” He says adding this allowed the opportunity to offer more packages, which would help the overall spa revenue. Anantara Dubai The Palm Resort & Spa director of spa Afrah Hamdy agrees and tells Hotelier that Turkish hammams have been taking the market “by storm” as a latest trend.
Trends that Four Seasons Resort Dubai at Jumeirah Beach director of spa Hayley Bluett is noticing in the local market mirror these thoughts. She says these include incorporating more traditional and ancient techniques such as ayurveda, Roman baths, and Turkish hammams. “There has been increasing interest in wellness trends from Islamic traditions, beauty ingredients such as argan oil and camel milk and spa experiences from regions like the Middle East and Africa,” says Bluett.

Moore also reveals that GCC locals are always on top of changes in the market, and so anything new on the market always does well. “Whether it’s an innovative facial machine from Germany, or a product endorsed by a celebrity dermatologist in Korea, these newbies are in demand,” she adds.

Madinat Jumeirah Talise Spa and Wellness spa director Stephan Wagner says one of the trends he’s noticed is an increase in the demand of spa gatherings for friends where guests combine a day out at the beach followed by treatments. Agreeing with Wagner, Blair says there will be in 2016 an increased promotion of “social spa-ing” — which is the trend for spa goers to enter in groups, and to spend more time there using the other amenities such as pools, sauna, and relaxation areas to enhance the overall spa experience.Hamdy agrees with both of their thoughts.

OPPORTUNITIES

In the current market conditions, hotel spas need to look for new opportunities or niches to capture. The competition especially is making life difficult. Moore says: “In most major cities, you will find various sized spas offering everything from cubicle massages for US $10 to salons purporting to be spas, all undercutting luxury spas with incredibly low pricing. One way of tackling this and to make sure you are able to maintain your guest capture is to create signature treatments for your spa.” Signature treatments, Moore says, allow spas to create a service guests cannot find anywhere else. Other ways she suggests include partnering with a product house or employing a consultant to create a treatment with the ROI being very easy to calculate.

“You can charge more for your signature treatment because it is so unique, helping to increase your average spend and as long as it’s created profitably, it will also help with your bottom line,” Moore advises.

Bluett says her resort has done what Moore suggests, with Sodashi creating an essential oil just for the spa, which is used in its signature massage. And in the signature facial, Dr. Burgener formulated a signature facial range, using pearl extract and pearl amnio acids. Anantara Dubai’s GM Laurent is similarly proud of the Microsilk technology now offered at the hotel’s say, and says his property’s spa is the only one in Dubai to offer that treatment.”

The Address Montgomerie Dubai spa manager Leanne Botha also says that with the increase in spas has made it more challenging to retain clients, so individuality is key. “Hotel spas should look at keeping their signature look and feel. If you can keep a hold onto that then you will keep your loyal clients. Also knowing what your clients expect and want in your spa will help you to adapt to their requests.”

Moore continues: “One factor that I repeat time and again to spa owners and managers is to make sure that you know your market. Understand your competition and know your clientele and you can’t go wrong. When you have this data, you can easily tailor your offerings, facilities and products to their needs, resulting in repeat business, a happy client, and essentially, a performing business.”

The opportunity in the hotel spa market, Al Kawasmeh says, is that they should consider offering customised facials for men, shaving and nail services as there is a greater awareness among men for beauty treatments.

Moore agrees: “Result-driven treatments are never out of fashion in this region and these people, both men and women take extremely good care of themselves. Spas for men offering traditional shaves and grooming are very popular, with local men thinking nothing of having a weekly mani and pedi — sans polish of course.”

Anantara’s Hamdy says this trend isn’t brand new, but deserves prominence in the next year. She says: “This is not new but male guests are looking after themselves, in terms of looking at facials, manicures and pedicures, as well as scrubs. Now they understand they have to look after themselves.”

Another opportunity is hydrotherapy, says Blair. He reveals: “Hydrotherapy has always been a popular aspect of spa, primarily as an add-on to other spa treatments. But as people start to recognise the many benefits of hydrotherapy, we will see a lot more demand for hydrotherapy and wet body treatments in the coming year.”

Educated customers, adds Blair, are coming to the forefront. They’re asking more questions than ever before, and are looking to extend the benefits well beyond the treatment. “They want continuous care, follow-ups, and customised programmes so they can incorporate what they’ve learned into their daily routine.”

Hamdy agrees that the new generation of spa-goers are very educated and want to know where the ingredients come from — provenance it seems, is a new spa keyword.

TRAINING

Training is a concern in all industries, and it’s the same for the spa and wellness sector. The industry as a whole is facing a major labour shortage, according to Moore. She says that spas are opening at a pace that the industry cannot keep up with.

She says: “The Global Wellness Institute stated that next year alone, the industry requires 600,000 therapists globally. The only way we can keep up with that sort of demand is to put more time and energy into promoting the industry and then training new recruits.”

Wagner says the therapists at his spa are all enrolled into in-house training workshops to fine tune their skills.

Blair notes: “The spa industry growth has a negative impact on the trained personnel. There are not enough trained spa personnel for the need prompted by the growth of spas worldwide. This may be due to the fact that there is a lack of a well-defined educational or career pathway. The industry has few spa-specific college level courses and training programme to train individuals in spa business. There is a shortage of technical business skills that industry leaders seek out in potential spa management. Spa companies that invest in resources to adequately train their team are few and far between, which means individuals are unlikely to be prepared for possible promotions.”

Al Kawasmeh says finding skilled personal is still a struggle in certain locations. Having experience in spas, he says, is not enough anymore. “You need scientific back ground and a higher level of education to keep up with the technological advancement in the field.”

Botha agrees, and says that when she arrived in the UAE four years ago, there was definitely a shortage of skilled spa therapists. However, the outlook is positive as she says there is a huge demand from the health and wellness community for trained therapists, which has reflected in the number of educational programmes that cater to this market.

Blair says that more and more emphasis should be placed on the execution of standards, best practices and staff training/education. “In other words, better and more consistent delivery of the spa experience is more important than is the invention of a series of new treatments. Greater time and attention to be devoted to ensuring that the spa personnel are better trained to deliver the experience that the spa goers now demands, particularly in a world with so many alternatives.”

Four Seasons Dubai’s Bluett says finding and retaining qualified staff is a significant and ongoing challenge. “Staff turnover rate in the UAE is vast. Our main aim is to motivate staff, to keep them happy and stimulated in their roles at the spa and wellness centre. Training is crucial — if not the most important thing for our staff. It is very important for them to understand the business model, the spa ethos and vision and mission and to keep them stimulated in the workplace. We offer consistent educational programmes, training and support combined with benefits and incentives.”

Moore concludes on this issue: “We have unemployment issues in many countries throughout Asia, the Middle East, Africa and Eastern Europe, so we need to look to these regions to start sourcing and training therapists. We are facing a shortage because the demand has outgrown the supply and we don’t have enough training facilities in these regions to produce therapists. Spas and hotels needs to look at seriously budgeting for training and recruitment or they are going to continue to lose revenue from turning away guests due to a lack of staff. These operations must also learn to deal with the issue of staff retention, so they don’t lose their trained team member to another spa.”

Refurbs, relaunches and more

1. In November 2015, The Spa & Wellness Centre at Four Seasons Hotel Riyadh refurbished all its treatment rooms and relaxation area. The spa, part of which underwent a full structural overhaul, now includes a new relaxation area, a new Oxygen Bar, a new locker room for treatment guests and a locker room for members of the hotel’s health club, in addition to seven treatment rooms that have been completely renovated by GA Design International. The spa has also refreshed its menu of treatments.

2. The DNA Center for Integrative Medicine & Wellness is partnering with Talise Spa at Madinat Jumeirah to offer a new range of treatments to Dubai including its customised DNA testing, which can slow down and even reverse the signs of aging. In addition to the DNA 4 Life portfolio of personalised lifestyle medicine packages, the centre will offer a number of additional anti-aging, healing, pain management and rehabilitation, as well as relaxation and rejuvenation treatments.

3. Anantara The Palm Dubai Resort & Spa expanded its spa in November 2015. The two-tier spa re-opened with an additional six treatment rooms, bringing the total to 24, as well as new male, female and couples’ hammam facilities. On the first floor, the single treatment rooms have doubled to eight, along with the addition of two new 34-square metre couples’ massage rooms with built in sauna, showers and whirlpool featuring Microsilk technology. The Turkish-styled hammam offers separate male and female facilities as well as relaxation areas, changing rooms, a dedicated couples’ hammam, reception, and a boutique.