22 Sep 2017 | Digital editions, magazines, websites, e-zines, handbooks and contract publishing for the leisure industry

Spa Opportunities issue 276, 2017 is now out!

Blogs:

Spa Opportunities bloggers:

Liz Terry
CEO,
Leisure Media

Kate Cracknell
editor-at-large,
Health Club Management

Katie Barnes
Managing Editor,
Spa Business

Lisa Starr
Senior Consultant,
Wynne Business

Anna Bjurstam
Owner,
Raison d'Etre

Dieter Buchner
Founding Partner,
Urban Healing

Jean-Guy de Gabriac
Founder/ CEO,
Tip Touch Academie

Marisa Dimitriadis
Managing Director,
The Spa Consultants

Anni Hood
Owner,
Kis Lifestyle Group

Jane Scrivner
Managing Director,
Jane Scrivner

Competition is everywhere

21 Feb 2013
by Liz Terry, CEO, Leisure Media
The spa industry faces new competition from pop-up operations offering spa breaks and experiences without the burden of capital costs carried by true spa businesses

Spas are expensive to build, and in creating them, owners, developers and operators either tie-up capital or have large debts to service.

So spa operations have to generate enough operating profit to clear a number of big hurdles: covering their direct operating expenses; in some cases contributing to overheads; then servicing debt; then maybe paying back some of that debt; and then, finally, creating an actual return. And all this before vital refurbishment is taken into account. There’s no doubt it’s an eye-wateringly expensive undertaking.

As a fixed-cost business, the upsides can be very attractive and this is one of the reasons the industry continues to thrive. However, there are signs new competition is coming down the line which isn’t shouldering the weight of this capital investment burden.

This January, I was browsing the usual new year diet and wellness magazine supplements and it was good to see spa figuring so prominently: "Take a spa break – top 20 places to get away," shouted one headline, but on closer inspection, only one of the 20 places in question turned out to be an actual spa. The rest were a higgledy-piggledy bunch of other options – basically where someone with imagination and a flair for PR had decided to grab a slice of the New Year good resolution pie.

There were hotels offering wellness retreats which were bringing in specialist spa chefs, star speakers on relevant topics and offering short breaks which involved hiking, spa cuisine and wellness lectures. There were others doing bootcamp spa breaks with celebrity trainers and mobile therapists offering sports massage in unusual settings – it was an attractive list of options.

But the one thing common to them all was the low cost base they were working from. The starting point was clearly, 'how can we create a 'spa' experience without having to carry the capital costs of actually building a proper spa and permanently employing spa staff ?'

While it’s great to see the wellness lifestyle gaining traction and a higher level of consumer awareness, I was left wondering where the spas were? Why weren’t they there, listed alongside the pop-up spa options?

We need to get seriously better at consumer PR and at marketing the value of our strengths if we're to counter the challenge presented by this kind of activity, because competition – and impressive competition at that – is everywhere and more of the same is on the way.



Tags: Spa Business  hotels & hospitality  spa & beauty  sales & marketing 

Share this story
Connect with Spa Opportunities
Follow us:
Magazine:
Download PDF
View Turning Pages
 
Sign up:
Instant Alerts
Ezine
Print edition

Comments (0) Be the first to comment!

You must be logged in to comment.   Login | Register


Not registered? Click here to register

Recent posts by Liz Terry


View more posts by Liz Terry

Connect with spaopportunities.com

       

Latest tweets from spaopportunities.com

Latest jobs from spaopportunities.com

Therapist/Sport Massage

Company: FACEGYM, Salary: Competitive plus commission, Location: London, United Kingdom

Spa Receptionists

Company: The Old Course Hotel, Salary: Competitive + benefits, Location: St Andrews, United Kingdom

Spa Operations Manager

Company: The Old Course Hotel, Salary: Competitive + benefits, Location: St Andrews, United Kingdom

Spa Therapists

Company: The Old Course Hotel, Salary: OTE - £24,000, Location: St Andrews, United Kingdom

International Training Manager

Company: ESPA International (UK) Ltd, Salary: Competitive, Location: Nationwide, United Kingdom

Regional Business Manager (Spa and Salon)

Company: ESPA International (UK) Ltd, Salary: Competitive, Location: Nationwide, United Kingdom

Spa Therapies Supervisor

Company: Bedruthan - The Scarlet, Salary: Competitive and perks, Location: Mawgan Porth, Cornwall, United Kingdom

Spa Therapist

Company: Bannatyne Health Club and Spa, Salary: Competitive, Location: Bury St Edmunds, United Kingdom

Spa Therapist

Company: St Michaels Hotel and Spa, Salary: £8/hour, Location: Falmouth, Cornwall, United Kingdom

Senior media sales executive

Company: Leisure Media , Salary: £competitive salary + uncapped commission, Location: Hitchin, United Kingdom

Wellness Practitioner

Company: ESPA International (UK) Ltd, Salary: Competitive, Location: South East, United Kingdom

Beauty Therapists (Full and Part Time)

Company: Center Parcs: Aqua Sana, Salary: Up to £18,600 pa + benefits, Location: Elveden Forest, Thetford, United Kingdom

Beauty Therapists (Full and Part Time)

Company: Center Parcs: Aqua Sana, Salary: Up to £18,600 pa + benefits, Location: Longleat, Wiltshire, United Kingdom

Beauty Therapists (Full and Part Time)

Company: Center Parcs: Aqua Sana, Salary: Up to £18,600 pa + benefits, Location: Woburn, Bedfordshire, United Kingdom

Spa Therapist

Company: Celtic Manor Resort, Salary: Competitive, Location: Newport, United Kingdom

Beauty Therapists

Company: Center Parcs Ltd, Salary: Up to £18,600 pa + benefits, Location: Whinfell Forest, Cumbria, United Kingdom

The Leisure Media Company, Portmill House, Portmill Lane, Hitchin, Herts SG5 1DJ.
Tel: +44 (0)1462 431385 Fax: +44 (0)1462 433909 |
About us | © Cybertrek Ltd