Defining the club spa.

Earlier this year, the International SPA Association (ISPA) announced that it had arrived at a definition for the word "spa." The definition had been in the works for "years," ISPA said, and incorporated input from journalists, consumers, spa professionals, and even a "verbavore" (someone who eats their words?).

The definition is as follows: "Spas are entities devoted to enhancing overall well-being through a variety of professional services that encourage the renewal of mind, body, and spirit."

What's the big deal about a definition? Frankly, the spa business is an industry in need of definition. "Spas" can be divided into three categories: day spa, resort, and club. On that, at least, there is general agreement. The problem comes when an operator of a facility that is actually a hair stylist or a massage therapist begins throwing the term around loosely. The crux of the definition is in the phrase "variety of professional services."

The key statistics from the ISPA 2004 Spa Industry Study, with studies performed by Association Resource Centre, Inc., revealed:

* There are an estimated 12,000 spas in the U.S.--a 25 percent increase from 2002.

* Day spas continue to be the largest category with 8,700 in the U.S.--a 20 percent increase since 2002. Resort/hotel spas remain the second largest category, and club spas come in third.

* The number of U.S. spa visits in 2003 was 136 million; down a little from the 2001 figure. Why? We are all crunched for time. Numerous recent polls--such as those by Gallup--show that those who are particularly time-deprived are parents of children under 18 and people who are employed. Those groups are the majority of spa-goers.

* Day spas had the majority of visits with 81 million, followed again by resort/hotel and club spas.

* U.S. had an average of 11,600 visits each in 2003.

* Men represent 23 percent of spa visits. Last year's consumer research determined that 29 percent of spa-goers are men.

A Different Animal

Chris White, senior vice president with WTS International, a spa and fitness design and management consultant, noted that club spas face challenges and opportunities far different from those of resort or day spas. "There is a difference between a resort spa and a private club spa," he said. "In a private club spa, the client is somebody who comes from nearby and comes multiple times, as opposed to somebody who goes to a resort, stays a week or so, and may not come back." Club spas also differ from day spas, he noted, in that day spas draw from the entire group that fits their demographic profile who live in close proximity to the spa, while a club is restricted to marketing to members.

Club members, White said, "use facilities in a different way. When people are on vacation, their time is all leisure time. It's really critical to recognize the difference in that usage pattern--dropping off kids for soccer on the way home from work."

Resorts are also able to emphasize treatments that capitalize on their locale or particular cachet. "They're selling a lot of sizzle in the resort," White said. That means wintergreen aroma therapy massage at the Wintergreen Resort, or herbal exfoliation at a tropical resort." That's not to say that a club can't introduce its own "signature" treatment; just as your bartender has a signature cocktail, or the dining room is known for its turtle soup or caramel rolls. It just takes a little bit of initiative and imagination on the part of the spa director.

Another note that clubs can steal from resorts is taking advantage of club events and activities to "sample" or "market" spa services: Think chair massages at a golf tournament or poolside, for example.

"The lion's share of the business in all spas is composed of massage in its various forms," White said. "The other thing you'll find to be successful is salon services (hair styling, manicure, and pedicure)." White noted that this is an area where the club has an opportunity to enhance its spa business--and revenue stream. But it's not a slam dunk, he said. People are very loyal to their stylists, and trying to shanghai stylists who are popular with members from area salons is a move that can backfire. Incorporating a salon needs to be part of an overall services, staffing, and management plan.

Spa Consumer Trends

So what are the trends that will affect the success of your club spa? The ISPA 2004 Consumer Trends Report, with studies performed by The Hartman Group, showed the following emerging themes in the consumer spa experience:

* The combination of massage and yoga--with Pilates-like overtones--could push massage into the realm of ordinary fitness routines and bodywork for many people.

* Researchers are finding an increased trend towards adult children introducing their parents to the benefits of spas. Gifts for special occasions appear to be the catalysts for children sending their parents on an expense-paid visit to a spa--stressing that the parents take care of their overall health. Most of the parents we're talking about are Baby Boomers and older.

* For those who are nervous about massage, sensitive to facials, or are simply new to spas, hydrotherapy is an exciting gateway for the spa experience.

* Excessive choice can be overwhelming. Consumers appreciate spa menus that are simple, basic, and short. Spa-users generally seek out dependable, reliable experiences that have a low risk of "wasting" their time and money. Also, better loyalty emerges when the menu is simple, because it automatically necessitates that clients ask questions of their therapist. This kind of interaction can more easily form the beginning of an on-going relationship--much like those people form with their hair stylists.

* Customization is increasingly becoming a point in consumers' decision-making process. By keeping the menu simple, therapists can customize a healing regimen for each client. Therapist-driven customization is an effective way to make each client feel like they are being treated specially and individually. This is an area where clubs can shine, with their focus on a higher level of service than is typically found in a day spa.

* First-timers need guidelines. A massage therapist's instruction to "take your time getting up" can be less than helpful, and feeds the feeling of unease on the part of the "newbie." Put together a simple handout (and incorporate the same material into your newsletter, signage, and website) that lets the first-timer know what to expect.

The Spa Director as Cat Herder

So as a general manager, how are you going to manage this? Gary Henken, CEO of WTS, suggests that it's just as bad an idea for a GM to try to staff and manage a spa as it is to do so with the golf course or grounds maintenance. But unlike those two club departments, the spa is an area where outsourcing of staffing and management makes a lot of sense.

"It is a highly management-intensive business, and it's very specialized. A club spa (versus a day spa) is much more of a defined business, which is focused on members and on members only," Henken said. "The challenge is not only to find qualified directors, but also to find therapists, aestheticians, and nail technicians. It's hard to find people and offer them the financial and growth opportunities they'd find elsewhere at a private club."

GMs who think culinary or golf staff can be ticklish to work with have a shock in store when they begin dealing with the mavericks who have gravitated to the spa industry in search of freedom. Henken said that his firm works as a consultant or the manager of close to 100 spas. That breadth of experience and opportunity results in a trust level among therapists and managers because there is a career path open to them through other clubs, and because they and bosses who walk the walk understand the need for professional development, flexible schedules, and other unique aspects of the spa and fitness arenas.

"Not only do club managers not understand 'those people' (spa, health, fitness, and wellness practitioners)--what it's like to live and function in the world of spa and fitness," Henken said, "but there are also unique service and cost management issues." Part of the role of a spa management consultant, Henken said, is to value education for spa staff and make sure that they are constantly improving not only their professional qualifications, but also their ability to find their way around a budget.

Another tempting alternative for outsourcing--turning the club spa over to a local independent spa operator or therapist to run it on a turnkey basis--has a lot of the same pitfalls that clubs frequently encounter when they set their golf or tennis pro shops as a turnkey operation.

The problem becomes, Henken said, that the "independent" is more oriented toward activities that will pad his or her personal income than toward viewing the contribution that the spa makes to the marketing, delivery of services, and bottom line of the club as a whole.

What defines your club spa? If it's not a level of service and personalization that your members can't find in the neighborhood day spa, you're going to need to redefine (lower) your expectations for its success.

WTS International can be found on the Internet at www.wtsinternational.com. Other spa consultants can be found on the ISPA website: www.experienceispa.com.