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RD&E 2009, Featured Articles, Spa

Selling the Spa

By Caitlin McGarry   Tue, Feb 16, 2010

Twenty-first century spas draw guests to resorts

Selling the Spa

In the past decade, casino operators worldwide have been moving beyond the touchstones of the gaming industry-"good food, good whiskey and a good gamble," as legendary Las Vegas casino owner Benny Binion used to say. Gaming operators must still provide those three elements in order to build a solid foundation to attract clientele, but casinos have quickly become full-scale resorts that seek to offer a high-end entertainment experience.

Amenities like golf courses and fitness centers were requisite in any successful casino a few years ago, but casino operators now see the spa as the latest "hot" RD&E feature.

 

The Attraction
Spas were once stand-alone destinations in and of themselves, frequented by celebrities and executives who would retreat to a secluded locale for rest and relaxation in the lap of luxury. As casinos have evolved, they have incorporated spas into an array of amenities designed to draw guests who want to gamble and be pampered, as well as patrons who plan to avoid the casino floor altogether. Unlike amenities such as nightclubs and pools, spas attract a wide variety of clients-men, women, old and young alike-making the spa one of the top moneymakers in a casino if designed, marketed and managed correctly.

"The most compelling reason today why hotels and resort owners and developers are looking to add a spa, or in many cases to expand their existing spas if indeed they already have one, is an interesting statistic," says WTS International President Gary Henkin, who has consulted on spas at the historic West Virginia Greenbrier Resort and Chicago's Trump International Hotel and Tower. "Of all the variables that the consumer considers when making a decision in determining one hotel or resort versus another, the single item at the top of the agenda is whether the resort has a spa. Spas can be unto themselves financially profitable. It can become a very lucrative additional wheel, so to speak, at the resort or at the hotel, along with other amenities that make money."

With treatments ranging from manicures and pedicures to therapeutic massages and facials, spas have something for everyone. Not only do spas themselves succeed financially, but they also act as a gateway for potential spending elsewhere in the resort.

"Ultimately, when you go to a resort, the owners and operators are looking for inducements to extend your stay and to increase your spending," says Ann Emich-Patton, senior consultant specializing in operations for spa consulting company Blu Spas Inc, whose principal and co-owner Cary Collier has provided design and project planning services for several hotel/casino spa projects such as the Spa at the Palms; Drift Spa at Palms Place; Spa at Red Rock; and the Spa at Green Vally Ranch, all in Las Vegas.

Emich-Patton adds, "They want to drive incremental spend by having you dine in their outlets use their amenities. That drives their incremental spend. If they're getting $200 a night for the room and they're getting another $50 or $100 for food and beverage, and then they're getting another $100 from the spa, that's in their pocket."

The revenue-generating potential for spas is also evident in the relationship between a high-quality spa and convention bookings. Convention organizers see spas as a benefit to their company's employees, and with dozens of treatment rooms, a well-rounded spa can easily accommodate the needs of a convention or any other type of large group.

"Everyone is realizing the revenue generating capabilities of a spa operation," says Brennan Evans, director of spa operations for the Borgata Hotel Casino & Spa and the Water Club at Borgata in Atlantic City. "Profit margins are strong and when properly planned and sized for the capacity of the resort, they can be a big supplement to the non-gaming revenue aspect of business. Spas also help reinforce the 'fun/getaway' atmosphere often desirous of resort destinations.

"From a business perspective, spas provide a great opportunity to network. Groups both small and large can take advantage of social function/interaction within the resort. Working alongside other departments such as F&B and entertainment, great experiences can be created for parties, bachelorette groups, pre- and post-wedding functions."

High-end resorts use spas to drive business, but the spa's influence is often seen throughout the property.

"The spa is seen as an extension of the resort," says Jean Klueter, director of spa and wellness design for renowned firm WATG, who designed the Venetian resort's Canyon Ranch SpaClub. "Currently, the spa is reflected in so many areas of the hotel that there can be a fine line between the hotel and spa. Hotel lobbies offer fruit-flavored water in decanters similar to spas. Restaurants offer healthier spa cuisine on their menus because their guests want to live a healthier lifestyle and eat more nutritiously. Guest rooms offer spa products in the bathroom, which not only markets the spa but also gives the guests an opportunity to take the sense of spa home with them. Even the bathroom in the guestroom is more luxurious and spa-like in character with over-sized tubs and experiential showers."


The Look
As the design of a spa translates to the overall design of a resort, spa-consulting firms like WATG, Blu Spas Inc. and WTS International are faced with the challenge of designing spaces that are distinguishable but also compatible with the properties they reside in.

"Too many spas end up looking nearly indistinguishable from one another," says Doug Chambers, principal and co-owner of Blu Spas Inc. "We focus on trying to have something about the design capture something that is unique to the area, something that reinforces the brand of the property. We try to capture the essence of the location, the destination, and create something that stands out, that is memorable."

An example of the unique elements used in spa design to capture the resort's environment is Blu Spas principal Cary Collier's recent work on the spa in Talking Stick Resort at Casino Arizona, located in Scottsdale, Arizona. The 12,000-square-foot spa is located on the 14th floor of a 15-story building, with panoramic views that are showcased via glass showers that allow spa patrons to enjoy the desert skyline.

Chris White, senior vice president of design and planning services for WTS International, says using a resort's habitat to drive design is crucial.

"It's really important that the spa fit logically and naturally and acceptably into the image and the market strengths of the host property, whatever those may be," White says. "Each property has a position in the marketplace; it has an identity; it has an image that is based on what it does or how it's perceived by its target customer out in the world. It's important that its spa do the same thing-do something that's congruent with that reputation.

"For example, if you try to do an Asian spa in the middle of a ski resort-certainly it's possible with a checkbook and a willing contractor, you could build anything you want-you run the risk of doing something that looks and feels out of place and sacrifices an opportunity to capitalize on the unique features and attributes of the host property, which is what a spa, as well as anything else, should do. It should capitalize on those things and the spa should reflect what the property does overall."

The design of a spa requires more than simply using nature as a guide. In order for a successful spa to separate itself from the pack, designers and operators must work together to create statement rooms as well as signature treatments that will draw the eye and wallet of a discerning client.

"We try to incorporate a few strong signature spaces to establish a unique and memorable experience for the guest," says WATG's Jean Klueter. "These signature elements include incredible thermal amenities like heated chaise lounge chairs, laconium rooms, arctic or igloo rooms, crystal steam rooms, ice machines and vitality pools, to name just a few. They offer a variety of hot and cold experiences. And what is great about these is that it is a return to the essence of spa -salus per aqua, or health through water. The healing powers of water and the circuit between hot and cold is very therapeutic-great for the heart and blood circulation. And, more importantly, it's great to see the domestic spas incorporating these elements when they have been part of the spa culture in Europe and Asia for so long.

"Other signature elements could be pre- and post-treatment relaxation lounges, meditation spaces or group rooms. All these areas are sanctuaries for relaxation and renewal. Even offering a typical service in a unique setting makes for a memorable experience. This includes a pedicure in a beautiful secluded garden with a locally handcrafted copper bowl. It's a great memorable experience that will bring the guest back and they will tell their friends."

While a copper bowl may not be a typical piece of spa equipment, there are a few must-haves for a versatile and successful spa. According to WTS International's Chris White, equipment that can be repurposed for many treatments is necessary to reap the financial benefits.

"As a general statement, I would say a successful spa ought to have equipment that is multifunctional; that would be true of the treatment rooms as well," White says. "You don't want a room that just has a Vichy shower in it, for example-has no tub or no treatment table in it. A Vichy shower, while it's very nice and is certainly a piece of equipment that's appropriate for a spa, if that's all you can do in that room, then that's 120 square feet of revenue-producing space which is limited.  Limited in how much revenue it can produce, not by its location or anything else, but purely due to its lack of equipment. It's important to have treatment tables that can convert easily from a flat massage table surface to more of a chaise lounge-shaped surface that can be used for skincare."


The Draw
Selling a spa depends on a variety of different factors, including the resort's size, location and prospective clientele, as well as budgetary constraints. Some spas market directly to hotel guests, while others seek to attract external clients as well as locals. WTS International's Gary Henkin says that internal marketing tools such as brochures, signage and concierge references are a requirement for smaller spas as well as larger spas, and spas that seek to draw a non-hotel guest must utilize other, more expensive means.

"Some of the larger spas have a public relations thrust," Henkin says. "They even have a person devoted to that, to creating buzz within the community through placement of art in magazines, on television and other things that involve more of a public relations slant than advertising. Those that do that are typically spas that are looking to attract not just an internal hotel guest, but also a guest that is outside of the premises. In virtually all cases, meeting groups that are coming to the hotel are communicated with in advance. If there are wedding planners in an area, they should be contacted to bring weddings to a spa. Local businesses should be communicated with. At other hotels that don't have spas, the concierge at those properties can be incentivized to move business to the spa.

"There are really two big ways to promote spas: one is internal; the other is external. Those require two very different marketing perspectives, very different budgets, very different focuses and directions."

There are a select few spas in the United States that are destinations in their own right, and the Spa at Encore is definitely an unparalleled example. The 61,000-square-foot spa is a Wynn original, with a decadent design motif and 51 rooms for both standard and exotic treatments. The Spa at Encore attracts guests who chose the resort simply for its high standards, which are reflected in the spa itself.

"The Spa at Encore is a place where you can escape all the noise and high energy of our resort and take a 'vacation from your vacation,'" says Ella Stimpson, director of spa operations at Encore. "Our spa is a place where you can decompress from everything and then re-enter the real world completely rested and ready to go. The Spa at Encore is getting a well-earned reputation as one of the best in the world and has begun attracting true spa aficionados as a result. People in the spa world and spa aficionados know of The Spa at Encore's reputation and it is on their list of places to visit when they are in Las Vegas. Most of our hotel guests come to the spa to relax and then are just amazed by the facility and our exceptional guest service."

Resorts that choose to aggressively market their spas can include the spa in the name, as Atlantic City's Borgata Hotel Casino & Spa chose to do in order to reflect the resort's emphasis on its 50,000-square-foot spa.

"Borgata's belief in the power of the spa experience is so strong that we have included the word 'spa' in our title," says the Borgata's Brennan Evans. "I would say our reputation for excellent service and therapeutic/relaxing treatments has helped create a strong following. Those who do happen upon us for the first time often quickly become regulars.

"Given our high return customer rate, Spa Toccare and Immersion have both been instrumental in becoming a part of the total Borgata experience. The spas and the salon/barber shop have become a regular staple in the weekly and monthly lives of many of our return customers."

As spas become a part of people's lives, whether they are relaxing on vacation or visiting a nearby resort for a massage or manicure, the Borgata's approach to its spa is reflective of the level of importance that luxury R&R (as well as RD&E) has attained in recent years. The result is a pampered clientele whose standards are elevated with every design, technological and operational innovation.

By Caitlin McGarry

Caitlin  McGarry

Caitlin McGarry is assistant editor of Global Gaming Business magazine and assistant editor of Casino Connection Nevada.

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