Published: March 23, 2009
New York Times
Hotel spas have long been a haven of calm for business travelers seeking to get the kinks out of their backs after a long flight or to unwind before a big meeting. But as the economic downturn hurts the hotel business, the spas are dealing with their own stresses.
Sisters-in-law Rosemary, left, and Judy Blumberg at Westin’s Spa Anjali in Avon, Colo. They took advantage of a special price for local residents.
According to PKF Consulting, spa revenue rose 5 percent from 2006 to 2007, largely because of higher charges for treatments. But since last fall, hotel spas have been dealing with both reduced occupancy and guests who have sharply curbed their discretionary spending.
PKF’s report on the outlook for hotel spas projected decreased attendance for 2009. To counteract this, hotel spa operators are trying several approaches to increase business and cut costs.
The spas are looking outside their hotels to cultivate a local and regional clientele. “Resort spas in particular are trying to attract more drive-in traffic,” said Lynne McNees, president of the International Spa Association. “We’ve seen a lot of resort and destination spas opening up their doors for day guests.”
Hotels like the Ginn Hammock Beach Resort in Palm Coast, Fla., the MGM Grand Hotel and Casino in Las Vegas and the Fairmont Sonoma Mission Inn in Sonoma, Calif., have all begun to offer incentives to local residents like reduced admission fees or discounts on treatments.
While this strategy may help spas circumvent the challenge of reduced hotel occupancy, it can have undesired effects for business travelers who may find the spa overcrowded or unable to accommodate them. Hotels say they have been trying to avoid spa logjams by being more proactive, contacting guests ahead of time if they anticipate a large volume of local visitors and asking them to book spa treatments in advance.
The hotel spas are also shifting toward shorter, less expensive treatments. Ms. McNees, of the spa association, said that many spas offered quicker or cheaper treatments in the past, but now they are marketing them more aggressively.
“Right now, I think where the spas are focused is trying to maintain the customer visits,” said Jeremy McCarthy, director of spa operations for Starwood Hotels & Resorts. “The spas are trying to see if they can touch as many people as they normally would.” Even if hotel guests spend less per visit, more visitors would help make up the difference.
“What our members have been reporting is there are more people walking in the spa door,” said Ms. McNees of the spa association. “We’re capturing more guests, but when they’re there, they’re spending less.”
Hotels also are trying to increase spa revenue by offering packages in which several services are bundled at a discount, throwing in bonuses like a complimentary manicure when a more expensive service is booked, and issuing credits that guests can use for treatments during their stay.
“We’re seeing a lot of instances of spa packages being used as a way to incentivize guests,” said Bruce Baltin, senior vice president at PKF Consulting, a company that focuses on the hospitality and tourism industries. Mr. Baltin said these kinds of promotions served two purposes. They bring revenue into the spa and they increase bookings of guest rooms without forcing the hotel to lower room rates substantially.
Jane Angelich, an entrepreneur in Marin County, Calif., says she recently received spa vouchers as rewards when booking rooms for business trips, both domestically and overseas. But at one hotel, the credit went unused when she could not find an appealing treatment for an amount close to the voucher’s $100 price tag.
“You really can’t get much of anything in the way of treatments for $100,” she said. “It gets you in the door and using some service where you pay the difference. Of course, the hope is that you will buy products or go back for additional services.”
Spa packages appear to be catching on, though. At the St. Regis Resort, Monarch Beach, in Dana Point, Calif., a discounted massage and facial that was heavily promoted via the social networking site Facebook has been extended twice due to demand.
“Business travelers are traveling more economically but at the same time you also have, I think, because of the fact that they’re feeling more stress, a lot more people recognizing the importance of taking care of yourself,” said Mr. McCarthy of Starwood.
Still, if hotel spas are having difficulty attracting business, travelers may notice more equipment sidelined or out of order for extended periods as properties buy lower-end items that break down more easily and cut back on maintenance to save money, said Kurt Broadhag, president of K Allan Consulting. Mr. Broadhag’s firm focuses on fitness facilities, which are often combined with spas at hotels.
Joe Sokohl says he thinks he has already experienced the down side. As a software designer for PracticeWorks, a company that manufactures dental technology, Mr. Sokohl goes to hotel spas when traveling. In recent weeks, Mr. Sokohl said, he visited two hotels with broken whirlpools that remained out of service for the duration of his stay.
“The problem is from an experience standpoint, it makes a negative experience,” he said. He said he even stopped booking a hotel he previously had used frequently in the past when the whirlpool was down for six weeks. He switched to a competing property nearby. “The new hotel was the same rate. The fact that they had an indoor pool and a whirlpool that worked made enough of a difference.”
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