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Spa's facing oversupply and offering discounts
Friday, March 17, 2006
Spas face facts, offer discounts
With more facilities competing for fewer customers, operators offer discounts, rewards programs and other perks to set themselves apart.
From staff and news-service reports
When Maureen Vipperman took over The Spa at Laguna Cliffs Marriott Resort in Dana Point last year, she quickly added unique treatments to ensure the spa stood out among the 150 in Orange County.
She introduced the Thai-Su, a blend of Eastern-inspired Thai and Shiatsu massages. She added a microdermabrasion facial. She also started accepting discounted spa gift certificates sold at Costco.
"Right now, the fact that there are so many of us to choose from is a big challenge," Vipperman said. "Trying to distinguish ourselves from the rest has been an ongoing task for many resort/destination spas."
Other spas around the country are rolling out frequent-flier-style loyalty programs, calling former visitors at home to check on their weight-loss progress and offering discounts to guests who rebook their next visit while they're still at the spa.
The efforts come on the heels of the industry's swift growth, which has left consumers with a dizzying array of spa options.
The number of spas in the United States - including day, hotel and destination spas - mushroomed to 12,100 in 2004 from 5,689 in 2000, according to the International SPA Association, an industry group. In another disturbing development for the industry, spa visits dropped by 13 percent from 2001 to 2003.
Canyon Ranch, which has locations in Lenox, Mass., and Tucson, Ariz., is giving people who book their next trip during their current stay an upgrade to a suite - about a $700 value.
New Age Health Spa in Neversink, N.Y., has launched a loyalty program that rewards frequent visitors. And Cal-a-Vie in Vista gives guests who book a return visit before they leave $300 in savings on a return trip.
At Laguna Cliffs, the rates for special massage and facial services range from $100 to $115, the same price for traditional, hour-long treatments.
Laguna Cliffs consumers can also use the Costco gift cards offered by marketing firm Spa Finder Inc. because they can save a buyer up to $30 on services.
Much of the new competition in the industry has come in the form of hotel spas. Marriott International Inc., for example, has 70 spas compared with 28 five years ago; its spa at the Camelback Inn, a JW Marriott Hotel in Scottsdale, Ariz., now brings in 50 percent more revenue than the golf course.
Day spas are also putting pressure on destination spas, which can cost up to $7,500 all-inclusive for a week's visit. According to Spa Finder, the number of day spas has grown 20 percent since 2002.
Some day spa owners say they haven't felt any impact from the spa glut. Burke Williams, which operates seven day spas in Southern California, including two in Orange County, said the chain doesn't offer deals to individual guests.
Instead, the chain focuses on driving growth by offering corporations discounts on services offered on slower, non-weekend days. The company has been doing this for three years.
"The promotions don't have anything to do with us slowing down," said marketing director Terry Shofron. "We're just taking a critical eye and seeing where growth can come from because we're maxing out on weekends."
Although the industry as a whole is experiencing a slowdown, Vipperman of Laguna Cliffs said there's still great consumer demand in Orange County for pampering services.
So far, just a few spas have closed in the past year as a result of the fierce competition, said Vipperman, who serves on a county panel of local spa directors.
"People definitely like luxury here," she said.
http://www.ocregister.com/ocregister...le_1055009.php
Spas face facts, offer discounts
With more facilities competing for fewer customers, operators offer discounts, rewards programs and other perks to set themselves apart.
From staff and news-service reports
When Maureen Vipperman took over The Spa at Laguna Cliffs Marriott Resort in Dana Point last year, she quickly added unique treatments to ensure the spa stood out among the 150 in Orange County.
She introduced the Thai-Su, a blend of Eastern-inspired Thai and Shiatsu massages. She added a microdermabrasion facial. She also started accepting discounted spa gift certificates sold at Costco.
"Right now, the fact that there are so many of us to choose from is a big challenge," Vipperman said. "Trying to distinguish ourselves from the rest has been an ongoing task for many resort/destination spas."
Other spas around the country are rolling out frequent-flier-style loyalty programs, calling former visitors at home to check on their weight-loss progress and offering discounts to guests who rebook their next visit while they're still at the spa.
The efforts come on the heels of the industry's swift growth, which has left consumers with a dizzying array of spa options.
The number of spas in the United States - including day, hotel and destination spas - mushroomed to 12,100 in 2004 from 5,689 in 2000, according to the International SPA Association, an industry group. In another disturbing development for the industry, spa visits dropped by 13 percent from 2001 to 2003.
Canyon Ranch, which has locations in Lenox, Mass., and Tucson, Ariz., is giving people who book their next trip during their current stay an upgrade to a suite - about a $700 value.
New Age Health Spa in Neversink, N.Y., has launched a loyalty program that rewards frequent visitors. And Cal-a-Vie in Vista gives guests who book a return visit before they leave $300 in savings on a return trip.
At Laguna Cliffs, the rates for special massage and facial services range from $100 to $115, the same price for traditional, hour-long treatments.
Laguna Cliffs consumers can also use the Costco gift cards offered by marketing firm Spa Finder Inc. because they can save a buyer up to $30 on services.
Much of the new competition in the industry has come in the form of hotel spas. Marriott International Inc., for example, has 70 spas compared with 28 five years ago; its spa at the Camelback Inn, a JW Marriott Hotel in Scottsdale, Ariz., now brings in 50 percent more revenue than the golf course.
Day spas are also putting pressure on destination spas, which can cost up to $7,500 all-inclusive for a week's visit. According to Spa Finder, the number of day spas has grown 20 percent since 2002.
Some day spa owners say they haven't felt any impact from the spa glut. Burke Williams, which operates seven day spas in Southern California, including two in Orange County, said the chain doesn't offer deals to individual guests.
Instead, the chain focuses on driving growth by offering corporations discounts on services offered on slower, non-weekend days. The company has been doing this for three years.
"The promotions don't have anything to do with us slowing down," said marketing director Terry Shofron. "We're just taking a critical eye and seeing where growth can come from because we're maxing out on weekends."
Although the industry as a whole is experiencing a slowdown, Vipperman of Laguna Cliffs said there's still great consumer demand in Orange County for pampering services.
So far, just a few spas have closed in the past year as a result of the fierce competition, said Vipperman, who serves on a county panel of local spa directors.
"People definitely like luxury here," she said.
http://www.ocregister.com/ocregister...le_1055009.php