A SpaFinder Spa Trend Citing

Susie Ellis, SpaFinder Insider

On our list of top 10 spa trend predictions for 2009 was “Casinos & Spas: A Good Bet” so I am pleased (and not surprised) that the New York Times had a large feature on this very topic in their Escapes section this weekend! Titled in the paper, “A New View of Atlantic City,” and online as "A New Side of Atlantic City: Spas," the article talks about all the new luxury spas which “helped polish up the gambling resort and, in the process, created another reason to visit.”

This is what I had written in our trends report in November 2008:

Casinos & Spas: A Good Bet Placing a high-end spa in a casino hotel was a long-shot idea when Elaine and Steve Wynn (both Golden Door regulars) opened the first at the Golden Nugget Casino Hotel in the 1980's. But today, spas in casinos have hit the jackpot, as they are some
of the highest spa revenue producers in the world. These world-class facilities are situated within hotels with hundreds (often thousands) of rooms, catering to a captive, free-spending clientele that both appreciates pampering and sees the value of balancing both high-octane indulgence and recharging, healthy pursuits.

Now let me just pause for a moment and address the comment I recently received on one of my blogs from an anonymous source suggesting that naming trends in the industry is more like stating the obvious.

Well, I don't think so. We do our homework. Having predicted many trends before they were ever big splashes in newspapers and magazines (spa lifestyle real estate in 2004, sleep health in 2006 and luxury detox in 2007 for example), I can safely say that our list is often a forerunner to the buzz that we see in that upcoming year.

Not that we are always right, however this casino and spa trend is an example of having accurately read the zeitgeist. Part of why we observe trends pretty accurately is that we are in tuned to what is in the pipeline, what consumers are responding to, and what the revenue and expense figures are for various types of spa establishments around the world. In addition we naturally monitor macro trends which, included in 2009 for example, the huge economic crisis.

The casino and spa story in the New York Times included a large photo of the Immersion spa swimming pool with multiple lounge areas overlooking the city at the Water Club hotel. There was also a photo of the lavender-lit Jacuzzi with waterfall background at the Red Door Spa at Harrah’s, a shot of the men’s spa lounge at the Borgata, and a peek into a treatment room at the Qua Spa at Caesar’s.

Although they didn’t mention it, “wow” decor is one reason why these spas are popular – not only with hotel guests, but as this article points out, but also with locals and people who drive in for a day visit. Casino hotels usually spend a lot of money making their spas dramatic and “something to talk about.” After all, spas in casinos can make very good money.

But spas in casinos also drive room nights – something the writer, Shivani Vora, mentioned in this article numerous times. Saying “they are major selling points at the hotels,” “draw visitors,” and “another reason to visit” shows how obvious it is that spas do more for a hotel than just make money from massages and facials. I find this kind of ironic...because I notice that many GM’s of hotels treat their spa managers as if they are towel-boys (or girls) when, in fact, they often drive significant business to the hotel itself. What is also interesting (and this is the result of a study done by Mandarin Oriental a few years ago), is that spas are often responsible for the majority of a hotel’s PR. After all, is the New York Times likely to write about the gambling tables or the decor in thousands of identical rooms? But spas usually have great visuals, evoke a healthy and positive feeling to a place that is often associated with the evils of gambling, cigarette smoke, and drinking and eating too much - and, in this economy, the desperation of some of its patrons.

And since I mentioned the economy, it might be worth noting that Vora stated in the article, “most spas say that bookings are up or holding steady” and “weekend bookings are still at capacity.” While I am sure that these spas have been affected somewhat by the economic downturn, there is resiliency. Why? Another trend in our top 10 – Stressing De-Stress, which which by the way, was the topic of a February New York Times article - "In Tough Times, Spas Stress Stress."

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Spa Update: Canyon Ranch Living, Liquidrom Spa, NY Times Article on Spa Facials, and an "I Need a Spa!" Marketing Campaign

Susie Ellis, SpaFinder Insider

I am behind on my blogging, with several topics piling up. I think it is the same problem everyone is facing...lots to do, limited time and feeling extra pressure because of the current focus on economic challenges. So I thought I would try something new: A short recap of four topics (that could each be their own blog) and my “bottom line” observations for each.

Canyon Ranch Living: Visited this new spa lifestyle real estate project that just opened in Miami. I was impressed with the size, style, and staff. It was more than I expected, with the full Canyon Ranch program integrated into this new setting. There are two towers where you can buy residences and one tower that is like a hotel. One of the towers is almost “sold out” and the other is around 25% sold I was told. Bottom Line: I like the concept very much. It just needs one thing - time. Time to increase occupancy and time for people to truly "get it" about this new living option.

Liquidrom: While in Berlin, Nicholas, my stepson, and I went to the famous Liquidrom where you float in a darkened space in warm salt water with music you can hear underwater. There are saunas, steams, cold foot baths, an outdoor Jacuzzi, a bar with fresh fruit, smoothies and snacks, and a few massage rooms. I literally fell asleep in the floating pool propped up by floating noodles. Our massages were excellent. (German therapists are highly trained.) Bottom Line: We both liked our experience. This seems to be a very successful business model similar to others I have blogged about including Centre Parc in the UK; Castle Spa, the Korean fun house in Queens; and Glen Ivy Hot Springs in CA. These places present hydro and thermal experiences as the primary focus and make good money by having volume attendance. They also provide a valuable wellness experience. 500 – 1000 people per day pencils out, even if few take treatments.

NY Times Article, "An Expression of Doubt About Facials": The same old saw: Doctors saying that facials are overpriced and spa therapists quoted as saying something that doesn't sound very intelligent. And then a side bar talking about what dermatologists consider valuable. (They mentioned exfoliation, microdermabraion, peels and extractions - the very things aestheticians at spas do!) Three things need to change in my opinion: 1) Aestheticians and spa professionals need to become more educated about terminology and research. They need to become more confident about the value of what they do. 2) Doctors would be well served to think of spa professionals as partners instead of adversaries. Spas do a lot to help people relax and de-stress, exercise, eat more healthfully, take care of their skin, wear sunscreen, etc. In fact, spas are places providing the very behavioral change doctors recommend to their clients. 3) Media would do well to realize that doctors have an invested interest in criticizing spa professionals, as many feel that spas might take away from their dermatology business. Bottom Line: Spas and medical practices are both important. Neither needs to discount the other and the media would be better served to take a more knowledgeable position these days. The consumer is way ahead of this old story.

"I need a spa:" This is a phrase we seem to be hearing (and saying) more often. In fact, Steve Kane, our Senior VP of Gift Sales, suggested we look at this phrase for our next marketing campaign and spread it out to our entire network of spas. He was inspired by what had happened to him that morning. A woman he knows was in a mad dash to make the train he takes into the city daily. Huffing and puffing she ran by him saying, “Boy, I need a spa.” Bottom Line: That pretty much says it all.
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Adlon Day Spa at the Kempinski Hotel in Berlin - Impressive By Susie Ellis, SpaFinder Insider

Visited Adlon Day Spa in Berlin. Learned that it is a day spa connected with the historic 5-star Adlon Kempinski Hotel...which was magnificently rebuilt right next to the Brandenburger Tor in the late 90s. The day spa is not part of the Kempinski brand, however, I think that this spa facility, with its 13 porcelain-colored treatment rooms with fireplaces and sitting lounges, sparkling tiled WATSU pool, and carefully selected skin care products, is an excellent fit. Stunningly designed and decorated by Anne Maria Jagdfeld, the spa is, if I had to use one word, exquisite.

Nicholas and I checked out of our Potsdam budget hotel (located in the former east German area outside of Berlin) where we stayed while attending ITB and into the Adlon Kempinski - which is the height of luxury. Since Reto Wittwer will be the keynote speaker at the Global Spa Summit and this was the first Kempinski hotel, I thought it would be a good idea to experience it. Wow... quite a contrast from our earlier digs. I was very proud of Nicholas who adjusted equally well to both places.

I watched a short movie about the history of the famous Adlon Kempinski which provided a haven for its guests during both world wars. The hotel survived both wars although, sadly, it was destroyed by a fire shortly after the end of the Second World War. It was totally rebuilt about ten years ago. The movie showed that while bombs were dropping all over Berlin, there was elegant dining, top notch service, and socializing at the Adlon.

I couldn't help thinking about how I was having a small taste of that experience. For just a few days, the current global financial crisis wasn't happening and we were immersed in another time... where things were carefree and the joyful service overwhelmed any stress. I think that the consistent hospitality at the Adlon was the best I have ever experienced. It reminded me how restorative it can be to "get away" and how lovely it is when everyone says yes with a smile...all the time.

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Glimpse of Spa Industry in Europe While Attending ITB Berlin.
Susie Ellis, SpaFinder, Insider


Am in Berlin - my first time at ITB Berlin which is the world’s largest international travel show. The numbers are staggering…11,000 exhibitors from 180 countries and almost 200,000 visitors – most of them trade. Clearly it’s “the” travel show to attend.

In addition to the huge trade show spread out in pavilion after pavilion on multiple floors covering blocks of space (it can literally take you an hour to walk from one end to the other), there are various conference sessions.

I had been invited to speak at their one-day Wellness Forum and was asked to present the findings of the first Global Spa Economy Report that was commissioned by the Global Spa Summit in May 2008. I took Nicholas, my stepson, along with me since it would give him a chance to tour Berlin which will be new to him.

My trip included spending time with the other speakers, listening to various international perspectives on the spa industry, visiting the travel exhibits including the wellness area (quite small actually) and then another couple of days in Berlin to try out the famous Liquidrom spa and the spa at the Adlon Kempinski. I tagged on a few more days to take in some sights with Nicholas and visit with some relatives who live in this area.

Some quick spa-related observations:

1. Europeans aren’t seeing a huge decline in spa business due to the economy – yet. Some think they may be lagging about 3 months behind the US and expect things to slow down. The most softening so far has been in the luxury segment with day spas not feeling anything yet.

2. Seems that people are beginning to hold back on large purchases - like a new car - however spa services are still an affordable option.

3. Spent time with Detlef Jath, Director of the Spa Division for Klafs – a famous sauna and spa manufacturer. Learned that (as I suspected) most people around the world do not know how to use a sauna properly for the best medical wellness results. Some Europeans – and especially the Germans – do know how to get the most out of sauna bathing. Detlef filled me in on the “secret” formula. (More about that in another blog.)

4. Europe talks about the modern spa industry being about 20 years old. I see it as more like 25 years old. It is still my contention that the modern for-profit spa industry began in the US around the middle 1980’s. I trace it back to when the term spa + global + industry came together. That happened in 1986. That was the year when a small travel agency opened in New York and published the first catalog of spas around the world. It was named SpaFinder.

5. I find it amusing to hear how adamant most European countries (and especially the German-speaking ones) are about rules, regulations, standards, etc. Almost every speech given by a German touched on this topic. Because I am German (born 4 weeks after both parents moved to the US from Germany), I am all too familiar with structure and rigidness and order. Even my husband, Peter, calls it a blessing and a curse. I agree.

6. I feel that there is a lack of recognition that it is the consumer who is setting the standards and regulations these days. The power of the Internet, which is forcing transparency through such tools as user generated reviews and social networking, is changing the entire ball game.

PhoCusWright (the number 1 travel technology company) and the Wellness Forum were the two conference programs given prominence on the ITB schedule. Fitting, I thought, as both technology and spas are here to stay.

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Spas and Medicine are Becoming Partners,

Susie Ellis, SpaFinder Insider

Our time has come. Prevention is “in.” What spas offer is "in." Wellness is "in." Part of the reason we have arrived at this place is because people are understanding the importance and cost savings of reducing stress and staying healthy. Another reason is the global economic crisis which has resulted in a government stimulus plan which has made health care reform a priority in the US.

We shouldn't let this opportunity pass us by.

I just spent two full days in Washington D.C. at the Summit on Integrative Medicine and The Health of the Public as a guest of Deborah Szekely’s. This very important meeting was held at the National Academy of Sciences and included many formidable speakers; Senator Tom Harkin, Dr. Mehmet Oz (of Oprah fame), Dr. Dean Ornish, Jon Kabat-Zinn and about 40 top medical professionals from around the country. It was a gathering of very smart and powerful people and I felt humbled to be able to listen to the ideas, take notes and at one point even share an insight.

Videos of each summit session are available on the summit website. If you have time to listen to only one talk - I suggest you listen to Dr. Dean Ornish. Although he talks very rapidly, he does a great job in explaining the exciting opportunity we have.

Literature describing the summit included this statement, "the summit was designed to explore the science and practice of integrative medicine — health care that addresses together the mental, emotional, and physical aspects of the healing process." Note the similarity to the definition of spa we use in the spa industry, "establishments that promote wellness through the provision of therapeutic and other professional services aimed at renewing the body, mind, and spirit."

I was struck by how often the distinguished speakers spoke about the importance of exercise, diet, stress reduction and mind/body medicine. They used terms such as wellness, integrative health, integrative wellness, behavior modification, and health coaching. There was a lot of reference to patient-centered medicine or people-centered care and mindfulness. These are all terms that we use often in the spa industry! Unfortunately, however, not once did I hear the word spa mentioned.

That’s a problem.

Let's talk about that in the next blog post.
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