Tag Archives: Middle East

Mayflower Sets a New Spa Standard

spa facilities 778972 Mayflower Sets a New Spa StandardThe Mayflower Inn and Spa in Washington, CT, is readying for opening. I was invited to be a part of one of the property’s “soft opening” groups this past week. My reaction? Words like stunning, gorgeous, exquisite, tasteful, thoughtful, and amazing come to mind. Without giving away some of the surprising details that will unfold for all of us in the next few months (hint: the destination program includes unlimited spa treatments), I did want to be among the first to spread the word that the Mayflower Spa will likely set a new standard in luxury for spas around the world. Welcome, welcome, welcome. treatments soaks 709319 Mayflower Sets a New Spa Standard

**
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!

Revenue Management Is Coming to the Spa Industry

patates uk 788217 Revenue Management Is Coming to the Spa IndustryEarlier this week Peter and I were in the “audience” during a presentation given by two Cornell University students who are getting their Masters of Management in Hospitality (MMH). They had chosen the topic of revenue management in the spa industry and used the two of us as resources. The students’ primary and secondary research showed that:

1) Very few spas are using revenue management as a tool
2) Doing so would likely increase their bottom line

We were impressed with their insights. Revenue management seems perfect for the spa industry.

But what exactly is it? I checked some definitions and liked this one from PROS:

“Revenue management is the application of science to maximize revenues and profits. Aspects can include forecasting demand, optimizing the allocation of inventory, providing dynamic packaging, and offering dynamic pricing.”

One of the most familiar examples is airlines raising ticket prices during the holidays, lowering them during the week, offering cheaper rates for advance bookings than for last-minute bookings, etc.

In the spa industry, revenue management will likely translate into lower prices for treatments during slower times (mornings and early in the week) and higher rates at peak periods (Saturdays). And that will just be the beginning, as product, hotel room, special service prices, etc. could also be adjusted to rise and fall according to demand. Value-add, packaging, and dynamic pricing will also be part of the mix.

Am I happy about this? Well, yes, if I like my massages on Monday morning.

**
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!

Sky’s the Limit on Spa Product Sales

skin care products 794873 Skys the Limit on Spa Product Sales“Women use an average of 12 products on their skin every morning just to get ready for work.” Dori Soukup shared that wisdom at last week’s panel on spa residential living when someone asked her whether enough products would be sold if a spa were not open to the general public but only to members and their guests. I thought that was an inflated number – until I examined my own morning regime. Dori, who has managed a variety of retail outlets in residential communities as executive vice-president of marketing for Pevonia Botanica, assured the questioner that not only do spas boost real estate sales but they also can be revenue producers.

This morning I counted the products I used: body wash, shampoo, hair fortifier, hair conditioner, body lotion, face cleanser, toner, moisturizer, eye cream, foundation, and hand cream. That doesn’t even count eye shadow, eye liner, mascara, blush, two kinds of lip liner, lipstick, lip gloss (ok, I have lip issues), and a moisture spray to “set” the makeup.

It’s becoming clearer to me how spas can have sales targets of 40% product revenue, improving the industry average of approximately 20%. I’m certainly helping some of their bottom lines.

**
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!

Living at the Spa, Literally

Picture1 788766 Living at the Spa, LiterallyOne of my dreams came true on Monday. Having been the “lone ranger” three years ago when predicting the popularity of spa lifestyle communities, it was heartening to have the privilege of moderating a panel at the American Spa Expo on Spa Residential Living. And it was even sweeter that my husband, Peter, was there. It hadn’t been easy selling him on the fact that this was really going to be a trend! (He did catch on sooner than most.)

Panelists included Gary Milner representing Canyon Ranch Living, Rick Hayduck from Cliff Communities, Steve Kass from American Leisure, and Dori Soukup from Pevonia. Each shared experiences and views on this burgeoning phenomenon: communities built around a spa/health/wellness lifestyle.

One of the most interesting comments came from Gary Milner, who disclosed that properties at Canyon Ranch Living sell at an almost 50% premium because of the Canyon Ranch life enhancement focus. And Rick shared data that convinced the Cliff Communities – which have primarily been known for golf – to put more resources and emphasis on their wellness-and-lifestyle component. After all, only 10% of consumers are interested in golf, but 75% are interested in health and wellness. So, if golf community real estate is a trillion-dollar industry, the opportunity in spa communities is going to be amazing.

Sigh….very sweet to have this confirmation three years later. And someday my husband and I will likely retire in such a setting. Where we can live at the spa – literally.

**
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!

Thoughts on Avon Closing Its Salon and Spa

avon7 753155 Thoughts on Avon Closing Its Salon and SpaOn Friday Avon announced that it is closing its salon and spa in Manhattan on June 16, after eight years of operation. Avon’s only spa is prominently located in Trump Tower on Fifth Avenue. When I heard the news, I naturally wanted to get more details, not only because we participated in a press event there on Monday morning but also because I wanted to understand: Why?

So I studied their financials (since Avon is a public company, the numbers are available), dug a bit deeper into their business model, and spoke with some of their management. The facts painted a different picture from the initial one I envisioned after hearing the somewhat shocking news. Here are some tidbits:

  • Avon was founded in 1897

  • Avon is the world’s leading direct seller of beauty and beauty-related products

  • The company did a record $8 billion in sales last year

  • Avon has five million sales reps worldwide

  • A $100 million state-of-the-art R & D center in Suffux, NY was just constructed

  • The company recently announced a “delayering” strategy to remove some management levels

  • Salma Hayek is the Avon spokesperson

  • Avon Wellness is working with Curves

  • The recently released Anew Clinical Eye Lift has done more than lift eyes – it also seems to have helped lift Avon’s stock price

    • Bottom line? The Friday earnings announcement, in which the closing of the Avon Salon and Spa was mentioned so briefly that it was almost a footnote, resulted in a 4% increase in Avon’s stock price!

    My guess is that while they made the decision to close due to corporate restructuring, they will likely be happy to give up what must be sky-high rents at Trump Tower and the high labor costs which are common in the spa industry (often over 50% of revenue). Smart business move – but probably a little hard on the ego.

    **
    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!