Elizabeth Arden Red Door Spas, the largest branded luxury day spa company, partners with DMX to enhance their spa atmosphere with a cost-effective multi-service solution. All spa and resort locations will have an eclectic mix of in-store music and informational on-hold phone messaging.

Red Door was previously using three different vendors to supply their music and messaging, but wanted to reduce the overall cost and total number of devices at their spas.

Under the agreement, the Stamford, CT-based Red Door Spas will market DMX’ services to the 30 locations it currently serves in 13 states. This will augment the company’s in-store music process, by having DMX as the sole vendor to deliver and easily manage every location’s customized service. With DMX’ ProfusionXS, Red Door will have three music styles in four separate areas of each resort and spa, including a wide range of upbeat, modern, cosmopolitan hits to relaxing, calming acoustic tracks.

“Each Red Door Spa location is unique in its own way, but it’s important that we maintain a consistent overall experience,” said Sarah Egan, Marketing Manager of Elizabeth Arden Red Door Resorts & Spas. “Knowing DMX has a history of supplying upscale-clients, we realized they would have the best solution for Red Door. We are extremely pleased with the entire process and end result.”

In addition to music, DMX has incorporated an on-hold messaging service, also delivered through their ProfusionXS device. This enhances the Red Door experience for customers over the phone, to extend their inviting image beyond the physical walls of their spa.

“This is a great partnership between Elizabeth Arden Red Door Spas and DMX. Red Door was looking for efficiency and DMX provided a solution to meet both their branding needs as well as their budget,” said Brian McKinley, VP of Marketing at DMX, Inc. “With their goals in mind, we reduced the number of devices at each location from four to one, and supplied messaging and music styles that best suit their ambience and brand image.”

The combination of two sensory branding components, in-store music and on-hold, voice messaging, provides the final solution to be a very upscale and invigorating spa experience.

About Red Door Spas
With nearly 100 years of beauty expertise based on fundamental elements and philosophy of day spa pioneer Elizabeth Arden, Red Door Spas operates 30 day and resort spas nationwide. Committed to enhancing the lives of their guests through beauty, harmony and well-being, and to providing pioneering techniques, quality treatments and advanced services, Red Door Spas will continue to expand, innovate and remain the leader in the day spa industry for years to come.

About DMX, Inc.

DMX, Inc. designs branded business environments and extends this experience into the lives of customers. This helps businesses differentiate themselves from competitors, build brand loyalty, connect with consumers, and provide an unforgettable experience for anyone who walks through their doors. On-site services include music, video, messaging, scent, and A-V systems. New media services include mobile message marketing, webcasting and music downloads. DMX also provides digital music services for cable television systems around the globe. For over 35 years DMX has represented businesses large and small, including some of the most identifiable international brands such as Coach, Starwood Hotels, 24 Hour Fitness and DKNY

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Spa Equipment, Spa Professionals

Know your competition. Whether you are playing a baseball game, building a business or trying to please your clients, knowing your competition is an essential key to success. In the spa industry, many owners, managers and professionals are spending too much time competing against each other. Instead, it’s time to join hands and marketing brains while banding together to take on the true competition—big-box stores selling over-the-counter skin care. Too many people in the industry are letting the mainstream media and marketing executives tell the story of professional skin care, and they are sending a misleading message that consumers can achieve the same or better results from an over-the-counter skin care product compared to a spa product.

Case in point, one over-the-counter line has recently introduced an expensive, high-end product to be sold in big-box stores, positioning it as an alternative to dermatologist-prescribed product offerings. However, it forgot to include one important value in the pricing: the guidance of a licensed, trained professional. This is where the spa industry can soar.

The opportunity is immense for spas to develop brand loyalty by fulfilling clients’ desires for long-lasting results through professional guidance. Spas already have a viable and loyal audience at their doorsteps. Statistics from the International SPA Association (ISPA) show one in four Americans have been to a spa, and there are more than 32 million active spa-goers. They are coming through your doors regularly. You are touching them, and yet allowing them to walk out the door empty-handed, leaving your clients to buy products elsewhere.

How do you educate and instill in clients’ minds that every time you touch them you are there as a professional to guide them through their important lifestyle and skin care choices? It’s all in the training. Give your staff a new vernacular, one unified message to send. And teach them to listen.
Share the knowledge

Spa owners, managers and estheticians have to tell the story and share the knowledge—it’s absolutely your responsibility as a spa professional. You are the people with the essential licenses, training and expertise. When consumers are provided with good information, they will make wise choices. This means, as a spa industry leader, you have the awesome responsibility of keeping your staff up to speed on the latest developments, products and their benefits, and in turn, the best ways to communicate this knowledge consistently and accurately to clients.

Nearly every spa professional educates on what products they use. For example, an esthetician may explain to a client why vitamin C is great for the skin, then simply let them leave without purchasing a vitamin Cproduct. The client then goes to her neighbor-hood drug or big-box store, reads a few labels and buys something with vitamin C in it. Most likely, the product—as well as the money and time spent—will disappoint her. This was the spa’s mistake. The esthetician educated the client, but she didn’t take that education to the next step by leading the client toward an effective product purchase.

Think of it this way: Treatments, products and guidance should be viewed as one seamless education experience for your clients. In one visit, this one-stop shopping mentality enables clients to receive the proper service, products, education and guidance to keep their skin maintenance and care going at home.
Putting the big-box theory to the test

With every dollar counting right now, you need to help your clients make educated decisions. Understand it is more cost-effective for clients to buy a product they can use for six months with great results than spending a little less, using the product for two weeks and then throwing it away because they don’t know how to use it.

Spa professionals owe it to their clients to share this knowledge and empower them to make the right decisions. When they end up at a big-box store, who’s there to prescribe the best products for their skin type? Who’s telling them what they do and don’t need? Honestly, besides the kid who’s standing behind the checkout counter, do customers even have the opportunity to talk with another human being during this process, which can directly affect their health and self-esteem?

Think of how cost-effective it is to have a professional recommendation with each product. When you help a client, consider that the coaching and professional recommendation is essentially free, and your client has the opportunity to better understand professional products are not more expensive than those found at drugstores and big-box stores.

Again, those outlets are your real competition—not other spa professionals. Focus your energy on figuring out how to educate clients on the benefit of a professional recommendation.
Learning to listen

Almost all spa professionals have likely witnessed firsthand the value of listening to clients. The power of the professional recommendation in the eyes of the client is enormous. These women and men look to personal trainers, life coaches, supervised weight loss programs and various support groups to master lifestyle changes that would lead to long-lasting, visible results. They value the training, tips, techniques, product suggestions and, most importantly, the consistent moral support they received from these professionals, and they credit these experts with encouraging them to stick with a program long enough to see results. With all of the knowledge and wonderful advice you share, it’s also important to take time to listen. Your clients are your best source of knowledge.

Spa professionals have many gifts for clients. These gifts are built by using education to help people achieve amazing skin, improved self-esteem and a healthier lifestyle. Only the spa community has the knowledge and personal connections to create these life-changing gifts and priceless. Embrace that responsibility and share your wealth of knowledge with clients today.

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Mitchells Salon & Day Spa

* 8118 Montgomery Rd
* Cincinnati, OH 45236
* (513) 793-0900

Annual Revenue: $12,000,000
About Mitchells Salon & Day Spa

Mitchell’s Salon & Day Spa is the largest privately owned local salon and day spa in the greater Cincinnati area. With five locations city wide, we’re uniquely qualified to cater to your every beauty and spa need. Our size has enabled us to build an educational network which is unparalleled, offering both in-salon and big city workshops with the top names in national and international hair design. In turn, we draw a caliber of designers with the highest artistry and passion for their craft. The same holds true for our spa personnel, whose mastery will bring you to a state of heavenly comfort and tranquility. We were voted best pedicure in the city four times running and our facials receive rave reviews. And, though we may be large, we have used our size to design a space that allows for both privacy and intimacy. Our individualized salon stations and separate spa wings ensure your personal care and comfort.
Mitchells Salon & Day Spa Executives

* Deborah Mitchell-Buyniski [Founder and President]
* Laurel Smoke [Editor-In-Chief of Salon Today]
* Christi Burnett [Vice President, Operations]
* Sherry Williams [Vice President of Operations]
* Vivian Moore [Managing Vice President]

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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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La Bella Spa Salon is closing its ABQ Uptown flagship site in early April and will consolidate its operations at its Westside location at 10126 Coors Blvd. NW.

La Bella spokeswoman Joan Griffin said landlord Hunt Development came to La Bella owner Dawn Davide and asked her to leave to free up the highly visible space for a national tenant in financial services. She described the closing as a “rightsizing” for La Bella.

El Paso-based Hunt Development has lost several national tenants at the upscale life style center in the past six months and has been leasing space to retailers that have less cachet than some of the original tenants. The company had no comment today on La Bella’s departure.

Davide will retain all 60 employees and regroup at her Coors location where she plans to expand by building out a second level. Davide hopes to find a new Northeast Heights location in 2010, Griffin said.

La Bella Spa opened at ABQ Uptown two years ago and it was the center’s most upscale retail location in a stand alone building fronting the center’s east parking lot. Davide hosted several major social and charity events at the salon. Griffin said the ABQ location was breaking even, but added the difficult economy was a major factor in closing at ABQ Uptown.

La Bella’s closing is among the most high profile of local retail casualities since the start of the national recession. Other upscale retailers who have closed entirely or closed individual units in the Duke City include Little Black Dress, Diamond Tags, Ruby Shoesday and Seventh Goddess.

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Hotel Spas: Therapy for Tough Times

By Robert Mandelbaum and Gabrielle Lerner

With economic forecasts for employment and income declining, professional and personal travel budgets tightening, and consumer confidence sinking, the outlook for 2009 may seem dreary. During challenging times like these, the spa industry has the potential to be buoyant. However, it is not invincible. The dynamics of the spa industry enable it to persevere longer than other industries for several reasons: a large portion of its consumers are affluent, an increase in stress can further emphasize the importance of staying healthy, and in difficult times people tend to seek out experiences rather than material objects. Yet during such economic times, the spa industry inevitably suffers as consumers re-prioritize and cut back on luxuries.

By examining the results presented in the 2008 edition of Trends in the Hotel Spa Industry produced by PKF Consulting and PKF Hospitality Research, operators and owners will hopefully be able to adjust their business model and identify areas of growth as we journey through this protracted recessionary period. The report analyzes 2007 financial performance data of 116 spas operated by hotels located throughout the United States. Comparisons are also made to the 2006 performance of the same hotel spas. In aggregate, the 116 hotels that voluntarily submitted their data for the survey averaged 405 guest rooms in size and achieved an occupancy of 70.8 percent and average daily room rate of $257.14, which translated to a 7.4 percent increase in Revenue Per Available Room (RevPAR) as compared to 2006 RevPAR. Both urban and resort hotel spas were included in the research, while day spas, medical spas, destination spas, and hotel spas that independently lease space were excluded.

Revenues

For the hotels that participated in our Spa Trends survey, spa department sales represented 3.9 percent of total hotel revenue in 2007. Although this number may seem understated in comparison to rooms or food and beverage revenue, a spa’s indirect impact on hotel image, average daily rate, occupancy, and group bookings is noteworthy. As expected, the spa sales to total hotel revenue ratio was higher for resort hotels (4.9 percent) versus urban hotels (2.4 percent). At a resort the spa treatment may be the main focus of a guest’s stay, while programs in urban spas are usually scheduled around the guest’s business or social schedule.

Total department revenue for the spas in the survey grew 5.0 percent from 2006 to 2007, slightly less than the 5.5 percent increase in total hotel revenue achieved by all hotels in PKF’s 2008 Trends in the Hotel Industry report. Since the number of occupied rooms for the representative sample remained relatively flat (0.2 percent decline), the rise in spa revenue was likely due to an increase in price for spa services, increase in number of services utilized per hotel guest, or a stronger mix of local patronage. Recent research has shown that although consumers are tightening their belts, they are still traveling albeit with a different mindset and expectation of services. People require value and a heightened level of experience; spas can meet that need by providing promotional packages, special offers, and discounts.

At 55.6 percent of total revenue, massage continued to be the greatest source of revenue for hotel spas. Skin care and body work (18.8 percent) and salon services (10.7 percent) also contributed significantly to spa sales. Retail sales, at 10.3 percent of total spa department revenue, enjoyed the greatest growth (8.8 percent) among all sources for revenue. Clothing and merchandise sales were generally greater in spas over 6,000 square feet or for those generating more than $3 million in revenue. Our data indicates this trend will continue as consumers are increasingly incorporating spa products into their daily routine. Retail revenue represented approximately 12.1 percent of total treatment revenue and cost of goods sold represented 56.7 percent of total retail revenue. Retail sales can be a powerful tool for improving bottom line profit. As such, spas should create or enhance retail space that provides a variety of clothing and merchandise, as well as dedicate management to control inventory levels and purchase orders.

For comparability reasons, membership fee revenue was excluded from our analysis of total spa department revenue. However, these fees made up 6.4 percent of total revenue for those spas reporting this line item and increased in 2007 as compared to 2006 by 12.2 percent. Due to the unstable economy, PKF-HR is forecasting a decline in hotel occupancy for the upcoming year. With fewer hotel guests, hotel spas may need to promote local participation via membership and daily use fees as a means of augmenting their revenue. Spas should be portrayed as an opportunity for non-hotel guests to escape from the pressures of urban life, to relax, and to be refreshed in mind and body.

Urban spas experienced a significant decline in daily use fees in 2007. However, when combined with the growth of fees at resort spas, the total sample enjoyed a 4.6 percent increase in daily use fees during 2007. The decline in urban locations may be the result of new marketing strategies that waive daily use fees in order to entice spa-goers.

Expenses

Like all departments within a hotel, labor related costs are the biggest operating expense for spas, representing 57.2 percent of department revenue in 2007. Included in this amount are the costs associated with leased or contracted personnel. Labor costs in urban hotel spas tend to be somewhat higher than in resort spas. Urban hotel spas have lower revenues and inconsistent demand for services making scheduling more complicated.

From 2006 to 2007, spa department labor costs for the hotels in the survey increased by 6.6 percent. The increase in labor costs were driven in part by the mounting burden of benefits which is reflected in the 8.7 percent growth in payroll related expenses.

Outside of growing labor costs, spa managers were effective in containing department operating expenses. Non-labor related costs actually declined 0.5 percent from 2006 to 2007 with the greatest savings achieved by controlling operating supplies (12.6 percent). This reduction is significant because this is an expense that can be managed to positively impact net profit. The industry should keep enforcing best management practices and cost controls so that employees take responsibility for their work and consumption.

The Bottom Line – Profit

The average departmental profit margin for the spas in the survey sample was 24.1 percent in 2007 with more operating efficiency exhibited by resort spas. It is important to note that hotel departmental profit margins are calculated before deductions for administrative and general, marketing, maintenance, and utility expenses. For comparison purposes and as a test of reasonableness, the average profit margin for all other operated departments in PKF’s Trends survey was 29.4 percent. The lower profit ratio for the spas can be attributed to the high costs of payroll, which in challenging times should be re-evaluated.

From 2006 to 2007, hotel spa department profits grew 5.8 percent with 12.3 percent growth in urban spas and 4.6 percent in resort spas. While a healthy rise over the previous year, it was less than the 6.7 growth rate for total hotel operated department income, which demonstrates the evolving spa industry still has room to improve.

Looking forward

As U.S. hotels are forecast to struggle with declines in occupancy, ADR, and revenue, we believe there is an opportunity for spa operators to capitalize on operational and competitive advantages. Labor costs curb profitability, but efficient scheduling can contribute to controlling costs. Hotel spas are an important amenity to all market segments and should be leveraged with regards to meetings, conventions, and other special events. Innovative marketing can also be created to promote the spa as a “staycation,” thereby providing a refuge for local residents.

We cannot ignore the current economic situation and yet there are still benefits to be gained from a spa’s operation – not only in terms of its impact to the bottom line, but as a contribution to our state of mind and outlook for the future.

Robert Mandelbaum is Director of Research Information Services in the Atlanta office of PKF Hospitality Research. Gabrielle Lerner is an Associate in the Los Angeles office of PKF Consulting. To purchase a copy of the 2008 Trends in the Hotel Spa Industry, please visit www.pkfc.com/store. This article was published in the February 2009 edition of Lodging.

CONTACT

Robert Mandelbaum
Director of Research Division
Email: robert.mandelbaum@pkfc.com

ORGANIZATION

Hospitality NetPKF Hospitality Research
http://www.pkfc.com
3475 Lenox Road | Suite 720
USA – Atlanta, GA 30326
Phone: (404) 842-1150
Fax: (404) 842-1165
Email: robert.mandelbaum@pkfc.com

Hotel Spas, Spa Business, Spa Professionals Hotel Spas

Spas urge clients to fight for right to wax

Pubic hair may be natural, but a New Jersey salon- and spa-owners group say women should fight for their right to wax it off.

Yesterday the Daily News reported that the state’s Board of Cosmetology and Hairstyling planned to ban “genital waxing,” often known as a “Brazilian wax” from salon and spa menus.

The practice has never been technically legal, but spas and salons up and down the state have long offered customers the chance to go bare . . . down there.

The Association of Salon and Spa Professionals has unsuccessfully lobbied the board to legalize genital waxing and is now urging women to sign and send a petition to Robert Gilson, director of the division of law at the state Attorney General’s Office.

“This is not a third-world country, but you’re telling a woman what she can or can not do to their bodies,” said Feuza Reis, marketing director at Jaira’s Salon in Middlesex County. “There is a huge demand for this service.”

New Jersey statutes allow waxing of the face, neck, arms, legs and abdomen, but officials say that genital waxing has always been illegal, although not spelled out. That will change when the cosmetology board passes the proposal, a state spokesman said.

Reis, a member of the ASSP in New Jersey, said state statutes don’t spell out whether it’s legal to wax backs or chests either.

“You know how many men get their backs waxed?” she asked.

Regardless of the procedure’s legal status, most salons in New Jersey offer Brazilian waxes, often under different names. The state does not investigate infractions unless they receive complaints from consumers. A spokesman said two women reported injuries from having the procedure.

The ASSP, which Reis said has 200 members in the state, sent the board a position paper on the subject recently, highlighting the demand for genital waxing for women and men, the socio-economic factors of banning it, and even suggesting how statutes should be tweaked to include the procedure along with back and chest waxing.

The board read the paper in closed session at their meeting on Tuesday night, Reis said.

“They voted to keep it out,” she said. “How come we’re going to be the only people in the world banning this kind of stuff?”

The Attorney General’s Office did return requests for comment.

To sign the petition, visit www.brazilianbikiniwax.org. *

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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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Recession Hits Luxury Spa Business Across Countries

Like most other industries, the spa business is being affected by the downturn in the global economy. Susan Harmsworth, chief executive of Espa, a company based in Britain, reports that since October, 20 of her company’s spa projects had been either postponed or canceled.

On a recent visit to Manhattan, Ms. Harmsworth discussed the spa business and its prospects.

Q. How long have you been in the spa industry?

A. I’ve been in the spa business since 1970. I started a design consultancy to five-star hotels in 1988. I launched Espa, the brand, in 1993.

Q. How big is your operation?

A. We’re working in 55 countries, we have 45 projects under construction, we have about 20 gone on hold in this climate, we have about 70 spas we manage globally now, and we have about 200 spas that we supply products, treatments, training to.

Our revenues are probably around £20 million for the year ending April 1, 2009. That’s product and services, fees for management, design and recruitment. This doesn’t include revenue from each spa individually.

Q. Which hotel brands do you work with and what is your business arrangement with them?

A. We do all the One & Only hotels and all the Leela hotels in India. We do most Peninsulas, a lot of Ritz-Carltons, we work with Mandarin Oriental, Four Seasons, Bulgari. We have an operating contract for a period of usually about 15 years, and we get a base fee and a percentage on turnover and profit.

Q. Why did you sell 40 percent of Espa to Istithmar World Capital, a private equity arm of Dubai World, last year?

A. The spa industry isn’t as profitable as people think, and to manufacture very high-quality products is also expensive. It’s not like mass toiletries. So we built the infrastructure of our company and our team and our global presence very slowly and very solidly. When Istithmar approached us, we felt that the opportunity to maximize that a little bit quicker would make it much easier.

Q. How is the recession affecting Espa’s business?

A. We decided to go out and see all our clients, because our clients are huge international developers. We wanted to work out which sites were literally happening. The sites that were in planning that are on hold while they refinance are Kazakhstan, Costa Rica, Dubai, Macao, Las Vegas.

The recession is the worst I’ve ever seen because it’s so totally global. There’s not a market that hasn’t been affected. I don’t have a client that’s not affected.

Clever developers are doing the design phases of everything, of the whole resort, and then they’re waiting because they think all bids from construction companies will go down. They may wait for another year or two. Projects have been canceled altogether because they can’t be financed or the company’s gone down. We have 10 projects that are on hold temporarily, there are probably 10 that have gone permanently, but then we gained others in December, in London, Marrakesh, Paris and another in Las Vegas. And 11 spas are opening in 2009.

Q. What are the trends now in the spa business?

A. More people are going to spas in groups. There’s an increase in male treatments, a lot of our city spas are 45 percent men. We’re seeing the medi-spa. In the States, it does noninvasive procedures including fillers, microdermabrasion, Botox. We’re seeing a big increase in spa cuisine.

Q. What treatment do you recommend for stressed-out Americans?

A. What I recommend is they don’t do this thing of running in for a 50-minute massage and then running out back to the office, which does them no good whatsoever. What we’ve found in the United States is that once somebody has felt the physiological advantage of using a steam room or heated jet pool, having a little sleep with an herbal tea, having a massage and having another little sleep, they just feel so totally different that they start then to think in a different way. You’ve got to try and slow people down and ground them.

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