Hotel spas have long been a haven of calm for business travelers seeking to get the kinks out of their backs after a long flight or to unwind before a big meeting. But as the economic downturn hurts the hotel business, the spas are dealing with their own stresses.

According to PKF Consulting, spa revenue rose 5 percent from 2006 to 2007, largely because of higher charges for treatments. But since last fall, hotel spas have been dealing with both reduced occupancy and guests who have sharply curbed their discretionary spending.

PKF’s report on the outlook for hotel spas projected decreased attendance for 2009. To counteract this, hotel spa operators are trying several approaches to increase business and cut costs.

The spas are looking outside their hotels to cultivate a local and regional clientele. “Resort spas in particular are trying to attract more drive-in traffic,” said Lynne McNees, president of the International Spa Association. “We’ve seen a lot of resort and destination spas opening up their doors for day guests.”

Hotels like the Ginn Hammock Beach Resort in Palm Coast, Fla., the MGM Grand Hotel and Casino in Las Vegas and the Fairmont Sonoma Mission Inn in Sonoma, Calif., have all begun to offer incentives to local residents like reduced admission fees or discounts on treatments.

While this strategy may help spas circumvent the challenge of reduced hotel occupancy, it can have undesired effects for business travelers who may find the spa overcrowded or unable to accommodate them. Hotels say they have been trying to avoid spa logjams by being more proactive, contacting guests ahead of time if they anticipate a large volume of local visitors and asking them to book spa treatments in advance.

The hotel spas are also shifting toward shorter, less expensive treatments. Ms. McNees, of the spa association, said that many spas offered quicker or cheaper treatments in the past, but now they are marketing them more aggressively.

“Right now, I think where the spas are focused is trying to maintain the customer visits,” said Jeremy McCarthy, director of spa operations for Starwood Hotels & Resorts. “The spas are trying to see if they can touch as many people as they normally would.” Even if hotel guests spend less per visit, more visitors would help make up the difference.

“What our members have been reporting is there are more people walking in the spa door,” said Ms. McNees of the spa association. “We’re capturing more guests, but when they’re there, they’re spending less.”

Hotels also are trying to increase spa revenue by offering packages in which several services are bundled at a discount, throwing in bonuses like a complimentary manicure when a more expensive service is booked, and issuing credits that guests can use for treatments during their stay.

“We’re seeing a lot of instances of spa packages being used as a way to incentivize guests,” said Bruce Baltin, senior vice president at PKF Consulting, a company that focuses on the hospitality and tourism industries. Mr. Baltin said these kinds of promotions served two purposes. They bring revenue into the spa and they increase bookings of guest rooms without forcing the hotel to lower room rates substantially.

Jane Angelich, an entrepreneur in Marin County, Calif., says she recently received spa vouchers as rewards when booking rooms for business trips, both domestically and overseas. But at one hotel, the credit went unused when she could not find an appealing treatment for an amount close to the voucher’s $100 price tag.

“You really can’t get much of anything in the way of treatments for $100,” she said. “It gets you in the door and using some service where you pay the difference. Of course, the hope is that you will buy products or go back for additional services.”

Spa packages appear to be catching on, though. At the St. Regis Resort, Monarch Beach, in Dana Point, Calif., a discounted massage and facial that was heavily promoted via the social networking site Facebook has been extended twice due to demand.

“Business travelers are traveling more economically but at the same time you also have, I think, because of the fact that they’re feeling more stress, a lot more people recognizing the importance of taking care of yourself,” said Mr. McCarthy of Starwood.

Still, if hotel spas are having difficulty attracting business, travelers may notice more equipment sidelined or out of order for extended periods as properties buy lower-end items that break down more easily and cut back on maintenance to save money, said Kurt Broadhag, president of K Allan Consulting. Mr. Broadhag’s firm focuses on fitness facilities, which are often combined with spas at hotels.

Joe Sokohl says he thinks he has already experienced the down side. As a software designer for PracticeWorks, a company that manufactures dental technology, Mr. Sokohl goes to hotel spas when traveling. In recent weeks, Mr. Sokohl said, he visited two hotels with broken whirlpools that remained out of service for the duration of his stay.

“The problem is from an experience standpoint, it makes a negative experience,” he said. He said he even stopped booking a hotel he previously had used frequently in the past when the whirlpool was down for six weeks. He switched to a competing property nearby. “The new hotel was the same rate. The fact that they had an indoor pool and a whirlpool that worked made enough of a difference.”

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It’s become commonplace for dermatologists to try their hand at selling retail skincare products, but few of them will say that your frequent forays to the beauty counter for moisturizer (as the crucial last step in the hallowed wash-tone-moisturize skincare regimen) could have all been for naught, or worse, harmful.

Dr. Zein E. Obagi, who made his mark with prescription skincare systems in 1988, doesn’t mince words when he’s bringing out his first over-the-counter anti-aging collection, dubbed ZO Skin Health, the usage of which is an encouraging “as you please” manner, probably to counter all the “you must have it!” messages floating about.

The deal is, the customer decides what exactly it is that needs improvement in her (or his) skin, and the ZO collection will have the solution, no pressure about completing the entire line.

The new “Rx-based formulations” are cleansers, sun protection and acne pore treatment (Offects), renewal/recovery cremes (Ommerse), eye repair (Olluminate) and cellular stimulants (Ossential) – Daily Power Defense “encourages DNA repair mechanisms to self-correct,” Radical Night Repair with 1% concentrated retinol (10 times the industry average) repairs “age-related damage,” and Growth Factor Serum triggers overall skin improvement.

First launched in Hong Kong, Malaysia, and Singapore, this past month, it will be available in the Philippines starting this month, then on to Australia, New Zealand, Japan, South Korea, the UK and US.

“You get what you need, not what Dr. Obagi thinks you need. Most women are addicted to moisturizer, but a recent article in the Dermatology Times indicates that an overuse of moisturizer can lead to skin cancer, and an upcoming article in the Financial Times titled ’Death By Moisturizers,’ quotes Dr. Obagi extensively in that a simple moisturizer, which is no more than lipids and water, is actually harmful,” said Jue Wong, Executive Vice-President of Global Sales and Business Development for Zo Skin Health, at a media preview last week.

“If I give you a product that has collagen 1, 2, 3 in it. You put collagen in your skin, what do you think is going to happen to it? It sends a signal to your skin to stop producing collagen. That’s marketing. If I give you a product that is a heavy moisturizer, it will tell your skin to stop producing moisture. What Dr. Obaji is saying, ’I don’t want your skin to stop functioning. I want your skin to function at it’s best.’ Most products are doing you more harm than good, because you stop producing what you need. You don’t need another skincare brand. But what this brand is doing, it wakes up your skin cells so that your skin cells will do what it needs to make your skin healthy,” said Ms. Wong.

Skin-Awakening is the new slogan

The parameters of healthy skin, said Ms. Wong, are provided by “seven signs” — namely that it’s smooth, hydrated, firm and tight, even-toned, tolerant and free of disease. The guarantee that the ZO Skin Health line is giving, is that skin will show improvement in these specific areas should one use the corresponding product in the collection. The timeframe is six to eight weeks. The shared ingredient in most of the products (exempting cleansers, polish and a full-spectrum sunscreen with zinc oxide and a titanium dioxide as active ingredients) would be retinol, as effectiveness is pegged at 0.2% up.

“It’s a saturation program enough retinol in your skin to keep it awake and to constantly give nourishment to the skin. Retinol is really the fountain of youth, but it does not have a very good reputation, it makes the skin dry, sensitive and [prone to] breakout. Most of the retinol products have water and when you have water it breaks down; our products don’t have water or it’s encapsulated,” said Ms. Wong.

Acne treatment is recommended for 11-year-olds at the earliest. But given that 80% of skin damage is primarily because of sun exposure, Ms. Wong ventured that the products to build on would be the sunscreen and scrub (to get rid of the buildup of dead skin cells).

If clients insist, they may mix and match the products with those outside the ZO Skin Health line (although Ms. Wong qualifies that Dr. Obagi would probably advise against it, realistically women like to experiment); however, mixing two retinol products is strongly discouraged.

Nevertheless, it should be noted that the Kligman clinical trials on the Oessential Growth Factor Serum (P12,500/30ml) reportedly showed 10% reduction in wrinkles and fine lines after one week of usage, up to 30% after eight weeks; 28% improvement on skin texture and 25% improved elasticity after eight weeks; with the 20 participants listing 80% reduction in wrinkles and 60% reduction in oiliness and age spots.

Another independent clinical study provided by Ms. Wong on the Oessential Radical Night Repair (P18,200/30 ml/1fl.oz.) noted 75% decrease in fine lines and wrinkles, 75% noticeable visible improvement of fineness, 79% improvement in overall skin appearance, and 92% improvement in skin tone and radiance.

Ultimately, the customer decides what works and doesn’t work, but Ms. Wong assured, “You will be able to see how the seven signs have improved. If you were rough, before you will be smoother. But you will never again completely to the level where you were like a baby. So it’s the best condition you possibly can [have] without any medical treatment, but after that if you still want more, you go see a doctor.”

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How spas and massage therapists are surviving in a slow economy

SUMMIT COUNTY — With local business facing the rigors of a down economy, luxury services like massages are unquestionably taking a hit. Residents and visitors are cutting daily frills, but locals in the spa industry share how they’re making it — with positive attitudes, creative advertising and extra legwork.
Erik Ulstad and Ro Irwin-Mayberry, owners of Breck Massage in Breckenridge, consciously strive to reach new customers with volunteer activities and networking.

“As poor as the economy is, this year is better than last year,” Ulstad said. “With Ro and I working and doing community outreach efforts, we’re doing pretty well. It’s not as abundant as it could be, but we’re going to make it through the shoulder seasons.”

They’ve participated in seven volunteer chair massage activities this winter, including holiday parties and Nordic ski races. They’ve also worked at D’Vine Wine chair massage nights.

“A lot of times people view massages as a luxury,” Ulstad said. “But if you take care of your body before it breaks down, you’re going to be better off.”

Being loyal to locals, being proactive and treating them well is Breck Massage’s mantra.

“They are the heart and soul of our business,” Ulstad said.

According to Irwin-Mayberry, Breck Massage offers a “local love” package, offering deep discounts on massages for Summit County residents.

And they’re reaching out to the community by providing a chair-massage service.

“A lot of times people can still afford a chair massage for $1 minute,” Ulstad said. “They’re still able to unwind at less cost.”

Both massage therapists are letting their hands speak for themselves, and it’s working.

“Not on a scale that would represent what the economy was three years ago,” Ulstad said, “but we are seeing people coming in because of our outreach. … Like one in 10.”

Breck Massage is reaching out to the destination skier market as well. Ulstad said the business services locals and visitors equally.

To draw out-of-town customers, they’re trying to drive more traffic to their website .

“The thing that we’re doing is keeping our eye on the long term,” Ulstad said. “ … We’re having to work a lot smarter to get the bottom line, squeezing the most out of every opportunity. We’re making lemonade, if you will.”

Laura Eilers, massage therapist, esthetician and nail tech
Silverthorne massage therapist Laura Eilers is “making hay while the sun shines,” and if that means being available every day or night, that’s what she does. Eilers works six to seven days a week, traveling between spas in Vail and Keystone, and to private homes with her own business, ArohaYoga.com.

Locals definitely get breaks on services, especially if they’re looking to do long-term massage and Eilers travels to clients or provides services in her own home.

“It might be slow, but the focal point is on customer service because you can get customers to return,” Eilers said. “I’m doing everything — massage, nails and skin care.”

Eilers is currently employed at Cascade Resort’s Aria Spa in Vail and the Keystone Lodge and Spa. She’s also working on her yoga and Ashiatsu certifications, striving to be multi-faceted and thus more employable.

Staying positive and putting out a good vibe is important to business, and Eilers is focusing on being smart with her income and resources that are coming in.

“Reality may prove that I need to find an hourly position, especially when mud season begins, to supplement income,” she said and she’s looking at employment ads and networking for springtime jobs.

Karen Mapes, owner of Blue Sage Spa
Karen Mapes, owner of Blue Sage Spa in Breckenridge, guards her secrets to solvency well, but she did divulge this: “If you’re mediocre, you won’t survive. If you excel at customer service, if you’re excellent at what you do, you’ll survive.”

Mapes concedes that for lots of massage therapists, business is slower. But Blue Sage Spa is hanging tough and taking every opportunity to bolster business.

“I think some of my staff is getting creative with second jobs, and they’re really eager to work,” she said. “ … One thing I’ve learned this winter is that you can’t compare last year’s numbers to this year’s. It’s just not realistic.”

Mapes is also always on the lookout for free advertising. She even got involved with the Ullr Parade this winter because she knew the Travel Channel was coming.

“This is not the time to pull back on your advertising,” she said. “We’re hanging on, spending less and making smarter choices when we do spend.”

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For many, the new year has taken some expected—and unexpected—turns, challenging most to approach the workday a bit more creatively and to think twice before making any uncalculated decisions.

It’s inspiring to hear about some of the creative solutions spa owners, managers and estheticians are implementing to keep businesses thriving in spite of what is happening in most communities—companies closing, massive layoffs and home foreclosures. What has been seen in our own ranks is the spa industry standing unified and standing strong.
Avoid becoming a statistic

An article on Washingtonpost.com states that, according to Carl A. Boger Jr., associate dean of academic programs at the Conrad N. Hilton College of Hotel and Restaurant Management at the University of Houston in Texas, 5–7% of spas nationwide won’t make it through the coming year. Don’t let your spa become part of this unpleasant statistic. Folllowing are a few suggestions to consider:

* Think value-added. What small, personalized touches can you include with your services without adding to your bottom line? Donovan’s Serenity & Wellness Spa in Alpena, Michigan, offers free LED hand treatments during facials, which doesn’t cost the spa extra because it already owns the equipment, but it introduces clients to a new element of hand care, and gives them something above and beyond the cost of the service.
* Help clients ward off their stress. Not everyone can afford to get away on vacation this year, so promote your spa as a mini-escape, as Nusta Spa in downtown Washington, D.C., has done successfully.
* Place an emphasis on staying healthy. The InterContinental San Francisco’s I-Spa recently implemented a membership program that is similar to that of a gym—with a more holistic approach.
* Consider cutting back on operating hours. The Ritz-Carlton, Tysons Corner in McLean, Virginia, recently trimmed back its hours to a six-day spa week, closing on Mondays.

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Spavia, a Denver Day Spa Has Record January Bookings, 24% Growth Systemwide Proves Small Businesses Can Thrive in this Economy

- SPAVIA Day Spa, a Denver based day spa with locations in Centennial and Greenwood Village Colorado had record January volumes. Comparing Jan. 2009 with Jan. 2008, the average increase in booking volume was 24% for the two locations. Allison Langenderfer, Spavia President, attributes the strong demand to the spa’s affordable concept. “Our guests get exceptional service at a more affordable price, which really resonates with consumers during the market downturn.”

With so much attention on the national retailers, the small business owners tend to be an afterthought. “We look at so many great national brands seeing a decrease in demand and it makes those of us in small business lose sleep. We’ve already seen some spa’s in the Denver area shut down and it has forced us to focus harder on providing the best possible service and price,” added Ms. Langenderfer.

According to Ms. Langenderfer, Spavia guests are saying they are cutting down on big ticket items, like vacations and jewelry. They aren’t willing to give up on the simple pleasures of wellness like skin care and massage spa treatments. She believes that consumers are getting more selective in searching better values and Spavia meets the need for a more affordable price.

Nancy Shipp, a Spavia customer states “My Spavia membership is a very important part of my monthly routine. Like many other consumers, I am managing our expenses conservatively, Spavia’s membership provides such a great value proposition to me that it is a luxury that I can afford to spend on my total health and well-being.”

Spavia’s record volumes in January give some hope that consumption based business can thrive during this economic downturn. “All we can do is to continue to offer an affordable product with service that meets consumers needs, the rest is not in our control.” said Ms. Langenderfer.

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