TRENDS business talk


A round up of some of the key trends which are impacting the business aspects of spa development and operations


Katie Barnes, editor, Spa Business Handbook BUDGET SPAS LOW COST & WIDESPREAD T


here have been budget airlines, budget hotels and budget health clubs (see p78) and it looks likely


spas are next in line. Several signs point to changes in the sector which indicate that in keeping with other time-based businesses, budget models will begin to emerge. As a marketplace which is dominated by


high prices and relatively low volumes, com- bined with a large, untapped mass market, the sector is ripe for change. Budget spas will have smaller footprints,


less or no communal facilities and a pared down offer focusing on one type of treat- ment such as a massage, facials or refl exology. Treatments will have a lower, more accessible price point and will sometimes be packaged into memberships – where a set monthly fee will include an initial free service and future discounts – to encourage customer loyalty and volume. Done well, with high-quality treat- ments and customer service, cheap doesn’t necessarily mean low-end. Massage Envy (see p26 and p90) is a chain of 750 spa franchises in the US and in


74 spa business handbook 2012


Budget spas are likely to have a pared down offer focusing on one thing such as facials


2011 had a revenue of US$804m (¤603.4m, £504.3m). The company has stripped its offer down to massages and facials – two of the most popular spa treatments – making it effectively the fi rst budget spa operator. There's room for more competi-


tion and franchising is a likely model for growth. Given the small foot-


print and relatively low entry point, growth will happen rapidly when it comes. The arrival of new spa operators isn’t all


bad news for the sector, however, as they bring new business, rather than just attract- ing customers from existing facilities – 22 per cent of Massage Envy customers have never had a massage before.


www.spahandbook.com


SHELDUNOV ANDREW / SHUTTERSTOCK.COM


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