Spa Business issue 4 2011 - TourismInsights

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www.spabusiness.com www.facebook.com/spabusiness @spabusinessmag 2011 4 spa business ASK AN EXPERT: Understanding discount deals and using them effectively Touch of magic Disney’s new spa in Hawaii HOT NUMBERS ISPA 2011 US Spa Industry Study How’s the market faring? South Africa’s Oyster Box Spa The Princess of Monaco’s honeymoon destination INTERVIEW Niamh O’Connell Hyatt’s bespoke approach to spa expansion
LIVESTRONG links with Sporting Kansas City The IPC president on athlete empowerment The resurgence of American Football How sport is coping with cuts New Zealand’s Rugby World Cup venues editor’s letter Fine tuning deals for profit W e’ve been busy investigating the daily deal website market for a series of features for Spa Business – the first runs in this issue on page 24 and we’ll be following up with more coverage in future editions. When websites like Groupon first launched, many senior figures in the industry railed against them, fearful of their impact on reputation, margins and profitability. However, things are changing and deal sites are becoming an increasingly popular, effective way for spas to improve yield, by shifting all but their most premium time. The way consumers buy spa experiences is changing too and as with most areas of life, is moving online, with purchases increasingly being made on mobile devices. ISPA’s latest research (see page 38) found that 95 per cent of spas now have a website and 28 per cent are already using deal of the day sites, while 8 per cent are using ‘flash deal’ sites. The management information which can be generated from analysing the way consumers respond to deals is invaluable in guiding the development and fine-tuning of menus, pricing and marketing as well as guiding the development of deals. Some operators have been using deal sites long enough to know which clients buy which packages at which rate and which are likely to become either regular customers or members or spend the most on retail. It’s also a straightforward way to see how two deals stack up against each other. One example of spas fine tuning their offer as a result of analysing deal-buying behaviour is the transition from ‘buy one, get one free’ – or BOGOF, as it was affectionately know Liz Terry, Editor twitter: @elizterry Using deal sites is a straightforward way of seeing how two deals stack up against each other and offers invaluable insights into how consumers respond to a spa’s pricing and product development – to the newer and reportedly far more effective ‘two-for-one’ offer, otherwise known as ‘bring a friend’. On the face of it, these two deals are identical, yet one works a treat (two-for-one) and the other (BOGOF) really didn’t work at all, highlighting the importance of small differences. The power of two for-one is that it immediately adds a social dimension – not only is it great value at a perceived 50 per cent discount, but you can take your partner/friend/relative along and suddenly it’s a whole experience. There are inevitable tensions between deal sites and spas because deal sites can – at worst – be ruthless and parasitic, but those that are in it for the long-term set fair rates, offer good advice on deal structure and spend time developing relationships and there are definite signs that many are developing symbiotic relationships. the leisure media company publishes SPORTS SIR PHILIP CRAVEN MANAGEMENT subscribe online: www.leisuresubs.com contact us Spa Business magazine, Leisure Media, Portmill House, Portmill Lane, Hitchin, Hertfordshire, SG5 1DJ, UK Tel: +44 (0)1462 431385 Email: theteam@spabusiness.com www.spabusiness.com Twitter: @spabusinessmag Facebook.com/spabusiness SPA BUSINESS 4 2011 © Cybertrek 2011 Read Spa Business online spabusiness.com / digital 5
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Page 13 and 14: Letters Do you have a strong opinio
Page 15 and 16: Thai-based operator Onyx Hospitalit
Page 17 and 18: 10 million consumers agree with us
Page 19 and 20: Fully fitted day spa for sale or le
Page 22 and 23: NEWS REPORT KATIE BARNES » MANAGIN
Page 24 and 25: OPINION ASK AN EXPERT... DISCOUNT D
Page 26 and 27: OPINION DISCOUNT DEALS n Europe, we
Page 28 and 29: OPINION DISCOUNT DEALS W ahanda has
Page 31 and 32: www.sothys-uk.co.uk Find out more a
Page 33 and 34: Hyatt used to have branded Pure Spa
Page 36 and 37: INTERVIEW The service and performan
Page 38 and 39: RESEARCH COLIN MCILHENEY » GLOBAL
Page 40 and 41: RESEARCH Ninety-five per cent of sp
Page 42 and 43: RESORT SPA ALOHA DISNEY A palm-frin
Page 44 and 45: FITNESS RESORT SPA as Luahoana, a r
Page 46 and 47: After meeting in the spa city of Bu
Page 48 and 49: FAMILY MATTERS says is ingrained th
Page 50 and 51: MYSTERY SHOPPER Oyster Box Hotel &
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SMYSTERY SHOPPER MY MYSTERY SHOPPER
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FIRST-PERSON JUST DESERTS David Min
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FIRST-PERSON Banyan Tree Al Wadi wa
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To attract 100,000 tourists in 2012
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CASE STUDY The spa reception at Zhi
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IT ONLY TAKES 17.5 MINUTES TO ACQUI
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SPA SOFTWARE PART 4 PHOTO: SHUTTERS
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SPA SOFTWARE PART 4 Software news u
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PRODUCT FOCUS KATIE BARNES » MANAG
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PRODUCT FOCUS TREATMENT AND RELAXAT
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PRODUCT FOCUS TREATMENT AND RELAXAT
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PRODUCT NEWS For more information,
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PRODUCT NEWS WE REVEAL THE LATEST S
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RESEARCH KATIE BARNES » MANAGING E
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