Tuesday, March 17, 2009

NOW, A RECESSION BOOM FOR SPA INDUSTRY

11 Mar 2009, 0411 hrs IST, Meenakshi Verma Ambwani, ET Bureau


NEW DELHI: Wellness is doing particularly well these days, as spas emerge as more cost-effective and less time-consuming alternative to vacations.


So, even as the tourism industry in general braces for a summer chill, city hotels and standalone spa outlets are warming up to reports of a 15-20% jump in business in the past 3-4 months. Experts say while people may have cut down on car purchases and foreign holidays, beauty treatments and personal care remain priority sectors.

Though the Indian spa market, at an estimated $384 million, is a fraction of the $60-billion worldwide wellness industry ($250 billion if spa-related spheres like hospitality, tourism and real estate are added, according to figures released at the 2008 Global Spa Summit in New York), marketers are limbering up to tempt customers. Hotels are hardselling day spa packages at their city properties and weekend spa packages at weekend destinations, while standalone spas are also offering budget options to beat stress.

“Spas are emerging an important revenue earning component,” says a senior official at ITC hotels. “With people getting more health conscious, domestic drive-in spa holiday destinations are becoming the new mantra.”

Adds Jaypee Hotels director Manju Sharmas, “Our day spa segment has seen an increase by nearly 20% in business in the past few months.” Even Delhi-based beauty expert Shahnaz Husain says her day spas have “seen a surge in business by as much as 30% in the last few months.”

While 5-star hotels are gearing up to offer a range of spa packages, starting from Rs 2,000 and going up to Rs 9,000, standalone spa centres are offering packages in the range of Rs 1,000-1,500. Neighbourhood health clubs have also jumped on the health bandwagon with spa packages for as low as Rs 500.

Beauty experts believe spas are seen as healing systems rather than a luxury. Blossom Kochhar, who runs her own chain of day spas says, “There has been a marked increase in footfalls in the last few months, specially from the corporate sector. This is a clear indication that stress levels are rising, and so people need to do more than just take vacations to relax.”

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