Spas and Greed Discussion Susie Ellis, SpaFinder InsiderMy friend and colleague Anitra from AboutSpas.com posed an interesting question on her June 21st blog, which I felt compelled to weigh in on. Her blog was titled, "Spas & the Greed Factor." Here are her comments and mine. Others also commented so check out her blog if you want to read all the rest. Anitra's Question: Have spas become too greedy? I was talking to a massage therapist the other day who said that the resort spa where he works is still busy, but the spa is dead. He thinks it's because the prices have reached absurd levels. "Resort spas educated people about getting massage and facials" he said, "But now they get them at home instead of when they're on vacation because it's so much cheaper." He thinks we've seen the end of the splashy new 60,000 square-foot spas, where prices are cranked up high to help pay for the fabulous facilities.
Judy Singer, a spa consultant, says people want what spas offer, but it has to be financially feasible. "Many spas have been their own worst enemy by getting caught up in the greed factor (very high treatment prices)," she writes. "This has caused consumers to re-evaluate the genuine need and ability for them to visit the spa."
What do you think? Have spas become too greedy? Are you changing the ways you use spas?
My Comment: Hi Anitra, Happy to weigh in on this discussion. You’ve asked a good question. High prices – especially at resort and hotel spas is something I have been thinking quite a bit about lately – especially since I just did a tour of many of the luxury New York city hotel spas where prices generally begin at around $350 – $450 for their basic massage service (most are 90 minutes or more).
I agree with many of the previous comments and think that Skip makes a good summary point that our spa business model is the challenge and in time, will need to change. With spas not making a lot of money, therapists not making a lot of money, and the consumer paying what seems like a whole lot of money (especially at hotel/resort spas), I don’t think that “greedy” is the right word however because that implies that someone is “wishing to possess more than what one needs or deserves” (dictionary definition). And I don’t think that is the case.
The evolution of our fast-growing business got us to this point and while there are a lot of factors that have contributed to this situation, the important thing now, I feel, is for all of us to think creatively about how this can be resolved for everyone’s benefit and for the long term.
Here are a couple of ideas that might be worth exploring:
1. In the US one must get a license for massage and a separate license for aesthetics. In Europe, “Beauty therapist” is a profession one studies for several years and at the end the therapists are able to do massages, facials, manicures/pedicures, etc. They work full-time, receive benefits, and are treated as professionals. Because they do not need to do six massages a day, their burnout rate is much less – in fact they can be beauty therapists all of their lives. From a spa’s point of view, staff scheduling is much easier when employees are qualified to do all services. Money is saved all around because there isn’t a cost for a lot of people sitting around waiting for work, and yet there are people available when a consumer walks in and requests a last minute booking. Turnover is less which also saves money.
2. One difference between resort/hotel and day spa facilities are the amenities such as saunas, steams, jacuzzi/whirlpools, cold plunges, etc. I think that if spas began creating treatments which incorporated these facilities – used in the appropriate way for health benefits – that the consumer would find that the charges are more reasonable because there is greater value.  Here is an example: Re-Energizing Massage Begins with 10 minutes in the relaxation room enjoying a hydrating and refreshing summer fruit drink. The treatment begins with two 10 minute sauna sessions interspersed with a cool shower and followed by 10 minutes of cooling down with lower legs in the cold plunge. This is followed by a 60 minute massage with a custom selected special oil and then two steam bath sessions to help the skin absorb the special oil. The steam sessions are interspersed with a cool shower, and ends with a regular shower using an organic soap and 10 minutes of cooling with lower legs in the cold plunge.
Not only would this series actually really refresh a person (delivering far more benefits than simply a massage), but it wouldn’t take any more staff other than someone in the hydro/thermal area helping all the clients do their steams/saunas/jacuzzi’s properly taking heart rates and answering questions about the true health benefits of these amenities. 3. Alternately, some resort/hotel spas have successfully created a business model where they charge for the use of hydro/thermal amenities and that gives consumers a price differential.
4. Some spas are having success with adding a membership option which I think can add a sense of community to a spa – and also bring in additional revenue. Sometimes members receive a discount on treatments which is an elegant way to lower prices for those who are truly dedicated to the spa without lowering prices for everyone.
They say that one good thing about a recession is that it unlocks creativity…it is my hope that this underlying issue (lack of profitability) for the spa industry will allow for some experimentation and “out of the box” thinking which could improve things for many in the long run.
Look forward to hearing some ideas from others!
** Follow me on Twitter: http://twitter.com/susieellis ** If you wish to be put on a list that automatically sends my blog posts to your email, just let dulcy.gregory@spafinder.com know and she will add you to that list. Thanks so much! Labels: About.com, Anitra Brown
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Joan Lunden's Spa Camp is a Dream Come True for Her and for Us!By Susie Ellis, SpaFinder InsiderA few months ago Joan Lunden, of Good Morning America fame, visited us here at our SpaFinder offices with some of her staff. We were to learn about her summer "spa camp" for women and she would be learning a bit more about SpaFinder. It turned out to be a great match with a lot of synergy. In particular I thought her yearly "spa camp," that she herself holds for four days and three nights each August in Maine, was a great opportunity for the women of our large spa enthusiast audience. While I thought most people know of Joan Lunden (she was on ABC TV hosting Good Morning America for 17 years), a friend of mine suggested that there is an entire generation who wouldn't necessarily know her and that not everyone watched ABC in the mornings. So I decided that at the end of this blog post, I will include some of her bio information. It certainly is impressive. But most importantly - I wanted to communicate a bit about her spa camp called " Camp Reveille" and let people know that it is actually still possible to make a reservation. Joan herself joins all the women campers for a variety of experiences, which all contribute to people going home looking and feeling fabulous! This is the third year she is running Camp Reveille. It is very reasonably priced which makes me think it will probably be sold out pretty soon. The entire experience includes luxury camp style lodging (and it is luxury), all meals, and all activities you would like to participate in. You can join fitness classes, sporting events, hikes, craft sessions, or just choose to relax and read a book. And who could resist the Murad Facial treatments and scrumptious s’mores around the campfire? The whole experience is about $899 for all four days. Joan is a real health advocate; she has written numerous books on healthy cooking and balanced living, has starred in her own workout video, and has raised seven kids. Yes, you did read that number correctly, she has seven (two sets of twins)! And as you can see from the photo above, she is still as attractive as ever - and she turns 60 next year! This is what she says on the camp's website, “take a break from your busy schedule and come away with us for a chance to be energized, be inspired, and enjoy some guilt-free “me time.” It might be one of the best spa experiences out there because it was designed by someone who loves spas herself and who really understands a woman's role - Joan Lunden. Now, as promised....some Joan Lunden bio information: - Born September, 1950 and became an American television personality
- Co-hosted ABC's Good Morning America (1980 - 1997) with David Harman and then later with Charlie Gibson.
- Named by Entertainment Weekly national viewer poll "television's favorite morning anchor"
- She reported from 26 countries, covered four presidents, five Olympic Games, and two royal weddings.
- Hosted DirectTV's series Hometown Heroes and the Emmy-winning special America’s Invisible Children.
- She is the face of Murad's skincare line, Resurgence.
- Is on the board of PassportMD, an online personal health record system
- Had three daughters with first husband, Michael A. Krauss
- Had four children (2 sets of boy/girl twins) with second husband Jeff Konigsberg
- Books she has written:
Wake-Up Calls: Making The Most Out Of Every Day (Regardless Of What Life Throws You)
Joan Lunden's a Bend in the Road Is Not the End of the Road: 10 Positive Principles For Dealing With Change
Joan Lunden's Healthy Cooking
Joan Lunden's Healthy Living: A Practical, Inspirational Guide to Creating Balance in Your Life
Growing Up Healthy: A Complete Guide to Childhood Nutrition, Birth Through Adolescence
Good Morning/Joan ** Follow me on Twitter: http://twitter.com/susieellis ** If you wish to be put on a list that automatically sends my blog posts to your email, just let dulcy.gregory@spafinder.com know and she will add you to that list. Thanks so much! Labels: ABC News, Camp Reville, Good Morning America, Joan Lunden, luxury
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A Toast to the Caudalie Vinotherapie Spa at the Plaza in New York by Susie EllisA woman soaking in a wine barrel looking out at what you imagine to be a view of a beautiful vineyard – that’s a photo I remember seeing when I first read about the Caudalie Vinotherapie Spa opening in France. It was 1999, and the first time I heard the term Vinotherapie.  It sounded intriguing to use various parts of grapes for facial and body treatments and like many other people, I found the story captivating. That new Caudalie Vinotherapie spa in France made a big splash on the spa scene with one major magazine after another showcasing its philosophy and setting. After a few years, however, I didn’t read as much about the spa although I began seeing more about vinotherapie in general and learned that there really was science behind it. Apparently the grapes have polyphenls rich in antioxidants and vinotherapy is said to stimulate collagen synthesis and is anti inflammatory. The results? More youthful skin. Then about three years ago, Mathilde and Bertraud Thomas who are the founders of Caudalie, and proprietors of the Château Smith Haut Lafitte which is th  e family property in the Bordeaux region of France, came to New York and visited us at SpaFinder. Lovely people. Attractive. Young. Authentic. They were brimming with enthusiasm about their product and looking forward to bringing it to more people around the world. Apparently they learned a lot in the years since opening their first spa. They now have a registered trademark for the term Vinotherapie, as well as a spa in Italy, one in Spain, and have opened in the U.S. Their products are sold in more than 25 countries and distributed in the US at Sephora, select Nordstroms, Henri Bendel, Blue Mercury, flagship Bath & Body Works, and independent specialty cosmetic boutiques. Tonight, I had the chance to experience their new Caudalie Vinotherapie Spa here at the Plaza in New York, which opened last October. While I think they could have done a slightly better job of space utilization (in their locker rooms in particular) and could tighten up a bit on staff training, I found the spa to be refreshingly unique. What I liked most about the spa is that it has a point of differentiation. While many spas these days have the predictable contemporary aesthetic, similar treatment rooms, unsurprising spa menus, tea upon arrival, foot rituals, humdrum relaxation rooms, similar equipment in the fitness room lined up in the same way overlooking the same type of view, etc., Caudalie has managed to carve out a unique experience - the highlight being their "French Paradox Wine Lounge."  The wine lounge - with its color palette of burgundy and a soft yet vibrant green (think red and green grapes) is spot-on. (The photo on the left doesn't do it justice.) It is the first social/relaxation/meeting space in a spa I have seen that really works. There are a variety of sitting areas – some with couches, some with chairs, some with a table and four chairs. The focal point is always the beautifully lit glass-encased collection of wine displayed from floor to ceiling. The furniture and decor show high style with a French sensibility and artistic flair. What really makes this work, however, is that the room is hosted by a wine sommelier who does the pouring and provides fare to sample and in general creates a sophisticated yet casual social setting that works even though everyone is in robes. Enjoying a glass of fine wine after a refreshing facial was yummy. The term Caudalie is a French term that quantifies the duration of a wine’s flavor in your mouth. One second of time equals one caudalie. The longer the flavor lingers the better and the more caudalies.
The spa gets lots of caudalies from me.
** Follow me on Twitter: http://twitter.com/susieellis ** If you wish to be put on a list that automatically sends my blog posts to your email, just let dulcy.gregory@spafinder.com know and she will add you to that list. Thanks so much!
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Spa and Medical Tourism - Learning From What Happened in Detroit by Susie Ellis, SpaFinder InsiderMany of you know that one of the top spa trends SpaFinder predicted for 2009 was the Medical and Spa Tourism Shuffle, so it didn't surprise us when the New York Times recently ran an article titled, " Heads Up - Medical Tourism: Sometimes, Sightseeing Is a Look at Your X-Rays." I wanted to share my thoughts on this article (which I thought was fine) but more importantly on the editorials that appeared subsequently. They, in my opinion, showed naive  ty. The article, was written by Joshua Kurlantzick and ran May 20th - at just about the same time we were listening to a panel of experts on Medical Tourism and Spas at the Global Spa Summit (GSS). Joshua shared his experience while in Thailand where he fainted and was rushed to the hospital by a taxi. He was taken to Bumrungrad International Hospital (lobby pictured below) where there was no waiting, where he had first class service from a very competent doctor, and ended up paying just $100 for all the care, the room and medication provided. He goes on to talk about the pluses and minuses of getting medical care in a foreign country. I have been to that very hospital - Bumrungrad in Bangkok. I toured it a few years ago because I had been told  it was a cross between a Ritz Carlton, a hospital, and a spa. And to some degree it was – I was very impressed with their concierge service welcoming people, entire floors dedicated to certain nationalities (like the Japanese) with translators, and unique décor, etc. Their children’s area had fun small furniture and play stations and the walls were brightly colored and doors painted to resemble living in a small world. There was a gym to work out at, spa services available, and an outdoor meditation area (which I thought they should scrap and make into a spa because who wants to spend time meditating out on the top floor of a building in Bangkok where it is hot and smoggy). Other than some of the fast food franchises on one of their shopping floors, it seemed like a “hospital of the future” to me. The NY Times article was interesting and raised some good questions and made some great points. But some editorials (many from doctors) that appeared in the Times a few weeks later had me rolling my eyes. Here is the gist of some of the comments: “Is Medical tourism a good thing? Not really, I’m afraid. Here in the United States, hospitals lose revenue. That’s dollars that used to cross-subsidize emergency rooms, charity care and chronic medical admissions for sick citizens here.”“I wonder about the quality of the services provided…what about the blood supplies? How safe are they? What kind of regulation and oversight is there?” “Medical tourism in the end, hurts poor countries who end up subsidizing the cost of heath care for rich countries.”
In general...most of the editorials brought up “red flags” about medical tourism warning that it is not good for the U.S. To that I say – wake up! Fortunately there was one comment which, in my opinion, had a wiser point of view. The writer stated, “The American medical industry should view with concern the off shoring of medical care. When foreign cars began appearing with greater frequency in the 1960s, Detroit mostly dismissed them as filling a small niche for people who wanted cheap, perhaps inferior transportation. But the cars got better, and look who is commanding the market today.” I thought the analogy of the U.S. car industry and medical tourism was a good one. While clearly we need to ask questions and insist on transparency and quality when it comes to Medical Tourism abroad, it might be a good idea for us to think about what happened to Detroit when we start talking like Detroit was talking for the past few decades. To stubbornly stick with systems which are unsustainable financially while the rest of the world innovates, catches up and surpasses us is foolish. How unwise to dismiss what is happening in other countries – especially when it comes to medical care given that our system is already plagued with problems. We do so at our peril. In some ways I feel that spa industry professionals are way ahead of doctors on this – I saw it at the GSS where the medical tourism panel was well received. In general I don’t see the “protectionist” attitude within the spa industry – perhaps it is because there are fewer dollars involved as there are with medicine. Spa professionals are not compensated at the high levels that many in the medical field are (insurance companies, some doctors, etc.) and so perhaps they aren’t as rabid about keeping the status quo. Spa professionals seem to genuinely encourage people to avail themselves of a variety of services – whether within the U.S. or outside of the U.S - whether to keep well or get well. In my view, spas are great bookends for medical tourism procedures. After flying to Bangkok (or India, or South Africa, or Costa Rica, or the Philippines, etc.), it makes sense to me to spend some time at a good spa getting adjusted from jet lag, eating healthfully, and getting body mind and spirit ready for a medical procedure. After then checking into a hospital and having a procedure, it would make good sense to recover at a spa where healing treatments, healthy food, light exercise, fresh air and such could help optimize healing. Next time you hear the term “medical tourism” – think “U.S. car industry.” Perhaps we can learn from our mistakes in Detroit and participate more successfully in a global world of health care and spa experiences. ** Follow me on Twitter: http://twitter.com/susieellis ** If you wish to be put on a list that automatically sends my blog posts to your email, just let dulcy.gregory@spafinder.com know and she will add you to that list. Thanks so much! Labels: Bumrungrad International, Global Spa Summit, medical tourism, New York Times, Trends
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Mandarin Oriental Spa's New Spa Treatment and Product - Nuances that Countby Susie Ellis, SpaFinder InsiderAndrew Gibson, Mandarin Oriental Hotel Group’s group director of spa asked me to try their new Signature Massage and product line as soon as it became available (this June). So I scheduled an appointment for the first Saturday in June, knowing that once the Global Spa Summit was over, it would be the perfect treat. Andrew wouldn’t tell me anything about it ahead of time, so I decided just to go with the flow. Having not been to the New York Mandarin Oriental since shortly after it opened in 2003, I was amazed at how the décor and menu still felt very upscale and current – a credit to the fact that they were ahead of the times when they opened. There were a few signs of wear (such as the sign in the Jacuzzi area) but the facility is still very pristine and I even noticed a few embellishments like additional lighting around the mirrors. The service seemed top notch – very clean, picked up, smiling attendants, etc. Of course, the stunning vistas of New York City and Central Park that can be seen from almost all of their rooms (and it was a beautiful sunny day) is never out of style. While looking forward to the new signature treatment, I was hoping that some of the really special things about Mandarin Oriental spas would still be in place. Thankfully they were. There was the customary exchange of shoes for slippers upon entry, the welcome tea which was better tasting than I remember, time rituals (blocks of time with a very well trained therapist in lieu of booking a specific treatment), and the welcome foot bath ritual. That foot ritual is nice for everyone (therapist included) as clean feet are important, but of even greater importance in my view is the opportunity it gives for the therapist and client to converse in effort to find out what the best plan of treatment would be for the client that day. I completed an extensive questionnaire with some yin yang questions to indicate which of the TCM Oriental principles of five elements (wood, fire, earth, metal and water) would be the one for us to work on today. Terms such as Flourish, Bloom, Awaken, Reflect and Release were used. Later I found that the questions helped pinpoint which of the five elements would correspond to a specific essential oil to be used in my treatment.
My therapist, Jim, was absolutely tops (do ask for him by name if you want to be assured of a superb treatment.) A chakra “test” of sorts on my back was next which helped to verify which treatment and essential oil to use. What most people don't realize (and I think they could make a bigger deal of this) is that getting a massage with expensive essential oil is a real treat. Not only does it feel good and smell good, but there is no after-massage itchiness and it benefits the skin to leave it on.
The 100 minute treatment was superb. At the end Jim finished off by giving me a sheet of paper which had information about “Awaken,” an essential oil corresponding to the wood element we were working on that day. It had a list of symptoms when this element is out of balance, some healing foods to consider and foods to avoid. He then ended the session showing me a Qigong exercise that would be good for strengthening this wood element for my liver and gallbladder meridians.
When I checked out of the spa I was given a lovely bag with a gift. It was a collection of the Elemental Bath and Shower Oils for the various Oriental elements set in a tasteful and gorgeous box. Not sure if they include the gift for everyone…it certainly was nice.
Bottom line…just as Mandarin Oriental introduced time rituals over six years ago, look for their new protocol that includes various testing and bespoke treatments with a new product and take home protocol that extends the treatment experience to become a new standard. It is more than the sum of its parts - I found myself looking forward to using one of the oils from my "goodbye gift" a few days later. ** Follow me on Twitter: http://twitter.com/susieellis ** If you wish to be put on a list that automatically sends my blog posts to your email, just let dulcy.gregory@spafinder.com know and she will add you to that list. Thanks so much! Labels: Andrew Gibson, Mandarin Oriental, Spa Design, spa treatments
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"The Swiss – We are reliable.” Words from Adolf Ogi, Keynote at Global Spa Summit 2009 By Susie Ellis, SpaFinder InsiderMr. Adolf Ogi, former President of Switzerland and United Nation’s Special Adviser on Sport for Development and Peace was a keynote speaker for our third Global Spa Summit (GSS). There is more to the story of Mr. Ogi and his remarks that evening than most attendees knew at the time - or even know now for that matter.  The reason Mr. Ogi was with us at all is because of his great friendship with Mr. Emanuel (Mani) Berger, the CEO of the Victoria-Jungfrau Collection who had attended our first GSS and enthusiastically invited us to host our first Summit in Europe at his hotel. Mani also suggested we invite Mr. Adolf Ogi to address the delegates. We were extremely grateful for Mani's suggestions and as you can see, took him up on both ideas. (Photo below: Adolf Ogi, Rosemary Berger, moi, Mani Berger, hubby)  It turns out that Mr. Ogi is a very humble man. At our dinner table, where I had the privelege of sitting beside him, he was not about to impress us with his many achievements on the world stage (which I had read about prior to our evening) or his accomplishment in sports (like the fact that he has climbed the Jungfrau mountain numerous times). Rather he shared with us things that were currently on his mind and concerning him deeply. He had just finished attending the Swiss Economic Forum where the topic, of course, was the global economic crisis which was beginning to hit Switzerland extremely hard.
When he got to the stage, he emphasized that Switzerland, where most citizens speak four languages (and none of them well, he added to a great deal of laughter), has a history of neutrality, is not a member of the European Union, does not use the Euro as currency, and yet (he added with great fortitude), “the Swiss, we are reliable.” He went on to talk about how important character is for both individuals and countries, and how that has become even more significant in an increasingly troubled world.
He also spoke about how important nature is, specifically water, to the quality of life in Switzerland and also the value of sport – learning to win, learning to lose – and how sport can affect peace. He recognizes the importance of the spa and wellness industry and is proud that Switzerland as a country has taken a lead in promoting its value. It was my impression, however, that at the core of his remarks he was challenging us to look beyond our industry and our immediate issues to the greater needs of the world. Very inspiring words.
But there was another reason I so clearly remember his words “The Swiss, we are reliable.” It was the very fact that Mr. Ogi was with us at all. You see, Mr. Ogi had lost his one and only son, Mathias Ogi, just six week prior to our Summit. Mathias had succumb to a rare form of throat cancer at the age of 36 - father and son had been incredibly close. While I am sure that Mr. Ogi would have preferred to be out of the spotlight at this very sad time, he kept his promise to his friend Mani Berger and therefore to us and addressed our delegation on the eve of our Global Spa Summit. Reliability is a precious thing indeed. ** If you wish to be put on a list that automatically sends my blog posts to your email, just let dulcy.gregory@spafinder.com know and she will add you to that list. Thanks so much! ** Follow me on Twitter: http://twitter.com/susieellis Labels: adolf ogi, Emanuel Berger, Global Spa Summit, Interlaken, Victoria-Jungfrau Collection
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Global Spa Summit, Switzerland 2009: HighlightsBy Susie Ellis, SpaFinder InsiderGlobal Spa Summit 2009 in Interlaken, Switzerland, just wrapped. I don't know where to begin, as it was an extraordinary event if I do say so myself. (Actually I believe that every one of the delegates who attended said so which gives me courage to repeat their sentiments.) Over the next few posts I will share some “pearls of wisdom” I learned from the many great spa leaders who gathered for this “World Economic Forum-style Summit” but for starters a brief recap: 1. Delegates attended from a record number of countries (32) with first time participants from Ghana, Nicaragua, Morocco, and Croatia. Spa leaders came from as far away as New Zealand, the Philippines, China, and a large delegation from Europe. It was a real global gathering 2. Highlights included the industry briefing paper, a 100+ page document written by delegates from various countries reporting on the effect of the global economic crisis on the spa and wellness industry in their country. The “around-the-world-in-60 minutes” kick-off presentation featured 25 presenters, who each gave a two-minute synopsis on their report. There is a robust spa industry in Austria, an emerging one in Ghana, and a severely affected industry in Mexico. All, however, expressed optimism for the future  3. Six collaboration sessions attempted to answer the question, “What can we accomplish together that we cannot accomplish alone?” Design, Human Capital, Product Houses, Medicine & Spas, Marketing, and Spa Associations. 4. Keynotes from Mr. Adolf Ogi, former President of Switzerland (pictured left) and Mr. Reto Wittwer, President & CEO of Kempinski Hotels (pictured right) 5. Research, research, research: Intelligent Spas, ISPA, Diagonal Report, Smith Travel Research, Ernst & Young, Cornell & Ecole Hoteliere deLausanne Study  6. Student Strategy Challenge presenting their ideas for the “Spa of the Future” 7. Pre-and post-Summit events which included visits to Dolder Grand in Zurich, Ecole Hotel deLausanne, Clinique La Prairie, Forever Laser Medical Spa in Geneva, and Fairmont Monteux Palace Will share some of my “ah ha!” moments beginning with my next blog post. ** Follow me on Twitter: http://twitter.com/susieellis** If you wish to be put on a list that automatically sends my blog posts to your email, just let dulcy.gregory@spafinder.com know and she will add you to that list. Thanks so much! Labels: adolf ogi, conferences, Global Spa Summit, Interlaken, Victoria-Jungfrau Collection, World Economic Forum
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Is Luxury "In" or "Out" for Spas? Susie Ellis SpaFinder Insider Buying luxury for yourself may be "out" right now. But gifting luxury is definitely "in!"
That was my "ah ha" moment at the SpaExec event here in New York a week ago. Nancy Griffin, from SpaTrade/Questex, helped put together a solid program at the International Esthetics Cosmetics and Spa Conference IECSC. She had invited Leo Reneghan, Phd., a former professor of hers from Cornell, to share insights from his work in marketing and messaging. Dr. Reneghan is a consultant now and one of his clients is McDonald's. Apparently he works for them and other clients on messaging and wording for their food menus. It seems that wording can influence sales to a great degree. Companies can earn millions of dollars in extra revenue by simply wording things in such a way that gets the customer to select the item they want them to select (that would of course be the one where they make the most profit). I found some of his examples fascinating. Here is one that was pretty clear: If you are selling pizza and your sign says: Medium Pizza $10.00 Large Pizza $12.00 Guess which pizza most people select? By far - the medium one for $10.00. Now, if instead your sign says: Medium Pizza $10.00 but for only 2 dollars more... Large Pizza $12.00 Guess which pizza most people select? By far - the large pizza for $12.00! Since you provided a reference point and helped the customer do the calculation and see the value in the larger pizza, the decision became easy for the customer and you got your extra $2.00. He went on to give us his opinion about the use of the term "luxury" in spas these days. Some people are saying that luxury is taboo due to the recession and the "AIG effect." Well, apparently that is true if you think of spa as a luxury. So he suggests a change in reference point. People are stressed. They know they need to take care of themselves. But they are also giving up conspicuous consumption. So we have to help people re frame their decision. "Spa is no longer a luxury but a necessity" is the better message he suggests. Many of us in the spa industry have been saying that for years - and we know it is true - however it was really fascinating to hear him come up with this from the sales point of view.
We as individuals can also benefit from this change in language. Women (and men) whose lives are more frazzled than ever would have an easier time deciding to have a revitalizing and relaxing massage for their health than indulging themselves with a pampering treatment. And when talking to others (such as a non-spa-going spouse) I need a massage sends a very different message than I want a massage.
Interestingly, when it comes to giving, the word luxury is still very much "in." Take Mother's Day for example....with everyone pulling back and the extra stress people are feeling, gifting a spa gift certificate (or a spa treatment) for mom is not being criticized at all. He ended his talk by recommending a book (which I immediately ordered) called Predictably Irrational by Dan Ariely. Can't wait to learn how they get me to buy the right size popcorn at the movies. ** If you wish to be put on a list that automatically sends my blog posts to your email, just let dulcy.gregory@spafinder.com know and she will add you to that list. Thanks so much!
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Spas for Facials, Massage, Skin Care and Melanoma AwarenessSusie EllisSpaFinder InsiderMay is Melanoma month. That makes sense since it's right before summer, the sun gets stronger and people begin spending more time outdoors. It’s a good time to remind people to put on sunscreen, wear hats, and have regular mole checks with their medical doctor. It’s this last recommendation – about having moles checked – that I want to tell you about this year. Our company decided to make melanoma awareness our philanthropic cause about five years ago. We did this for a variety of reasons. First and foremost because of the untimely death of my friend and colleague, Alex Szekely. Second, spas are places people feel comfortable disrobing and are often open to reminders from aestheticians and massage therapists to get checked for melanoma and to wear sunscreen. Alex Szekely was the president of the Golden Door and Rancho La Puerta. I worked closely with him for quite a few years. Peter and Alex were also friends and rode motorcycles together. Alex was passionate about health and wellness. I remember one evening when Peter and I were with him and his wife Diane at his home...he was cooking up soy burgers – showing us the special way he was able to make them taste absolutely fantastic. Alex was very health-conscious, not only did he eat healthfully, exercise regularly, and get spa treatments regularly, but he also engaged others in his healthy lifestyle. It is unfortunate that most of us didn't know much about melanoma at the time. When Alex first noticed an unusual spot on his lower leg, he didn’t really pay attention to it for quite some time - after all he was so healthy. Finally, someone convinced him to see a doctor. By the time he found out it was melanoma skin cancer, it was already very far along. While some early interventions looked promising, in the end the melanoma had already progressed too far. What a terrible tragedy. Alex had two small children and was unable to see them grow up as he so longed to do.  Each year we help get the word out about melanoma awareness and this year we are doing it once again with our “I Reflect” Melanoma Awareness bracelets. (Think yellow Lance Armstrong bracelets…but these are a clear color and turn purple when exposed to the sun!) They are fun to wear, fun to give to others – even children get a kick out of them. You can get more information here. Also, please take a look at the list of spas who have partnered with us in getting the word out. Even ISPA, the International Spa Association, recently announced they were going to support melanoma awareness. I am sure Alex would have been pleased. ** If you wish to be put on a list that automatically sends my blog posts to your email, just let dulcy.gregory@spafinder.com know and she will add you to that list. Thanks so much! ** www.twitter.com/susieellis
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Big News for Aesthetic Medical Spasby Susie EllisSpaFinder Insider How odd. On the front page of Thursday's NY Times this week, I noticed this headline: "F.D.A. Orders Warning Label for Botox." Yet when reading the article I found a far more interesting and important issue than what the headline touts. Let me know if you agree. Here is how the article began: “Botox and other similar anti-wrinkle drugs must now carry the most stringent kind of warning label, the Food and Drug Administration said Thursday. The F.D.A. issued that order the day after the agency approved a new drug, Dysport, that is expected to be the first real challenger to Botox in the United States.” Wow! Dysport has been approved? Botox finally has a challenger! That’s the real news which I think a lot of people (except those at Allergan who have had a monopoly on Botox for the past seven years) have been waiting for. Botox sales totaled $1.3 billion for Allergan in 2008 thanks in part to the fact that they have consistently raised prices every year. This latest development will certainly be good news for consumers and especially medical spa enthusiasts because prices will most likely come down. Here is my theory on why many journalists (or those who write headlines) tend to pick up on “alarms” regarding Botox and fillers such as Juvederm, Restylane, and the like rather than recognizing what is really going to resonate with readers. It is because many of these writers are relatively young…in their 30’s, maybe 40’s. Translation – they don’t have wrinkles! It reminds me of the time I saw a celebrity interviewed on television saying (with attitude I might add) that she would never do Botox. It’s poison…not safe…blah blah blah. Oh yes, she was in her 30’s. Well, all I can say is I would love to see what these people will say (and do) when they are in their 50’s or 60’s! In the meantime, those of us in the spa industry might want to think about how this new development will affect our industry. I am not talking about the new warning label which I think will change almost nothing, but rather, that a competitor to Botox has entered the market. If you trace the history of aesthetic med spas back to their beginning, you will see that they appeared on the scene in 2002 - the year Botox was approved. They have grown exponentially ever since. What’s going to be the result of Dysport and other anti-wrinkle substances that are now in the pipeline making their debut? It just might be worth furrowing our brows and giving it some thought. ** If you wish to be put on a list that automatically sends my blog posts to your email, just let dulcy.gregory@spafinder.com know and she will add you to that list. Thanks so much! *Check on twitter: http://twitter.com/susieellis for snippets of spa thoughts. Labels: botox, dysport, medical spa treatments, New York Times, wrinkles
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