Pampering for less

Spa aficionados are looking for value-for-money pampering.

As spas re-think strategies to slash costs and increase profits, new mid-market models are emerging. Spa Manager asks experts how operators can cash in on mid-market spa trends

The global economic crisis has led many hotel companies to revise their outgoings to save on expenditure.

As a result, many spas have been forced to consider how to attract customers whose own budgets have been cut too.

“With the effect of the recession a number of clients that may have been high-end spa goers will move some of their treatments to a mid-market level,” assesses Kory Thompson, managing director of Mandara Spa Middle East and Indian Ocean.

Spatality managing director Ingo Schweder says mid-market spas are “all about value for money”.

“Treatments are usually delivered to a reasonably high standard as the spa relies heavily on repeat business and volume,” he says.

“Mid-market spas are also offering spa memberships and packages, which will offer loyalty incentives or reduced rates.”

Mandara’s Thompson cites “price and the feeling that they can be who they are” as two key factors that make mid-market spas appeal to customers.

He also notes that mid-market spas do not possess what he terms “the intimidation factor” of opulent hotels and spas.

Spatality’s Schweder adds: “The trend is to adopt a low-price strategy to capture the middle market ignored by high-end operators. Most spas today are foreign chains, which have set a high price, but if you offer a reasonable service with high standards, you can get more repeat customers.”

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The differences between the varying standard levels of spa are rudimentary, explains Mandara’s Thompson.

“Much the same way as a three-star hotel differs to a one-star or a five-star hotel, it is about the quality and price of the physical product and the services and treatments offered,” he explains. “For example, I don’t see a reason to have a hammam in a mid-market spa or extensive water treatments — get to the basics of what the clients want and offer cheaper massages.”

According to Spatality’s Schweder, mid-market spas differ from high-market spas by offering traditional spa services such as therapeutic massages, facials and waxing at a price 40% less than traditional day spas, all in locations more convenient to the clientele.

“The most popular treatments are still massages, which allows mid-market spas to offer quality treatments that have a relatively low treatment cost. Service treatments like waxing are also popular as they are easy and quick to deliver,” explains Schweder.

“Margins are thinner, but profit comes from a bigger customer base.

“The spa market in the Middle East has a lot of room to grow and focusing on this market segment allows operators to build their spa businesses without relying entirely on hotel occupancy,” he adds.

Zynk Design managing director Stavros Theodoulou notes: “Mid-market spas can specialise their offering. They also appeal to both destination and transitional markets due to their location.

“They are also meeting a need; low-market spas don’t really offer a spa experience more a series of treatments.

“Mid-market spas can offer a full spa experience at an appropriate price and given location.”