Spa Discounts: Yay or Nay?

SháNa Spa in Santa Fe, NM, is offering creative promotions to boost business.

I moderated a panel last weekend at the IECSC New York show called Ask the Experts, Conversations with Top Spa Operators. The talented panelists included Suzanne Holbrook, executive spa director at The Ritz Carlton Orlando Grande Lakes; Peggy Wynne Borgman, executive consultant, Wynne Business Spa Consulting and president, Preston Wynne, Inc; Bruce Schoenberg, CEO, Oasis Day Spas; and Ann Moloney Brown, spa director, Spa Shiki at The Lodge of Four Seasons. It was a wonderful session with all sorts of great audience feedback. But one topic we kept returning to was discounting. Traditionally, spa operators have shied away from the word—if you offer a discount, how can you justify returning to non-recession prices when things get better?

However, we are in the midst of a rather frightening economic time, and we all agreed that it might be time to rethink some of our marketing approaches. Case-in-point? This recent article from The New York Times that was cited by Bruce Schoenberg during the panel:

“Never Mind What It Costs. Can I Get 70% Off?”

This story got me thinking—is it time to reconsider instituting spa discounts? Throughout the panel discussion, we talked about ways to do this (often without actually using the word “discount”), and I also recently received a list of new promotions instituted by SháNah Spa at Bishop’s Lodge Ranch Resort & Spa in Santa Fe, NM. Some of the creative new promotions to they’re instituting to boost business include:
• Friends and Family discount card (20% off) for employees to give out to friends and loved ones
• Happy Hour discount at the spa from 9 to 11 a.m.
• A special Industry Rate for other spas’ and resorts’ employees
• Rainbow Night, targeting the gay market
• Teen’s spa parties held on Fridays from 6:30-9:30 p.m.
• Private birthday events for groups

What do you think about spa discounts? And what are you doing to creatively boost your business during this difficult time? Send us an email at spablog@americanspamag.com. We’ll post your feedback here!

SpaFinder Reveals the Strength of Spas

SpaFinder released the findings of its Spa Performance and Strategies in the Economy surveys designed to track the performance of resort and hotel spas in this uncertain economy. The surveys, which were conducted with more than 500 spas in February, reveal the resiliency of the industry. “The spa industry’s ongoing, aggressive focus on deals has been an extremely savvy move, meeting the demand of stressed consumers who need spas more than ever—but only if the price is right,” says Susie Ellis, president of SpaFinder. “As more consumers forego travel and seek breaks closer to home, the ‘daycation’ has moved from a trendy buzzword to reality.” Here’s a look at some of the key findings:
• Revenue: 51 percent of day spas reported revenue gains in 2008 over 2007. While 54 percent of resort and hotel spas reported revenue declines in 2008, their spa facilities are generating a rippling profit-effect, reporting that guests using the spa spend more in other areas of the resort than non-spa guests and they tend to spend more than 15 percent more than non-spa guests.
• Staff: 60 percent of day spas report they will maintain staff levels in 2009, and only 20 percent report that they will cut personnel, while 55 percent of resort and hotel spas will maintain current staff levels.
• Promotions: 66 percent of day spas plan to increase deals and promotions in 2009, while 76 percent of resort and hotel spas plan to increase deals and promotions since they report that discounts are the best way to attract new customers.
• Internet Marketing: 82 percent of day spas and 83 percent of resort and hotel spas plan to increase or stay the same with their Web marketing in 2009.