OPINION: MASSAGE-ON-DEMAND E
ven though the spa industry is a US$12bn annual market in the US, as it exists now, it’s outdated and inefficient. The goal of a
great massage is to relax your body and mind. However, to receive a treatment at a spa, you have to deal with difficult scheduling, traffic, parking and a host of other distractions. Enabled by technology, Soothe removes those distractions and makes it simple and easy to schedule a massage with approximately an hour’s notice. We’re redefining massage and spa. Our low expense business model allows
very competitive pricing – starting at US$99 (€89, £63) for a 60 minute massage, tip and tax included. This enables us to attract new customers to the spa marketplace, many of whom haven’t been to a spa before. We also attract regulars who are tired of the hassles that go along with traditional spa experiences. At the same time we’re able to pay
our mobile therapists US$70 (€63, £45) an hour – 3.8 times higher than the industry average – and provide them with
Merlin Kauff man CEO & founder, Soothe
marketing and visibility to customers. Therapist safety is a common question and our clients must adhere to strict rules. Our research shows that people want
quality bodywork in their homes at a reasonable price, from therapists they can get to know and trust. So far, we’ve seen great demand for this type of service and experience – year on year, our revenue increased by 800 per cent. Los Angeles, where Soothe was born,
is our most thriving market in terms of revenue and therapists, with over 400 signed up. We fully expect that we’ll replicate our success across California, Arizona, Texas, Washington DC and Florida. We’ll expand into other domestic markets and will explore the potential of international markets.
Since we are a rapidly growing start
up company, most of our issues are operational and scaling based. Our challenge is not finding therapists but rather, growing Soothe quickly enough while maintaining quality. Should traditional spas be concerned
about the rise of massage-on-demand businesses? I think there will always be a demand for spa facilities. However, many customers are converting to in-home massage with the rise of massage-on-demand.
A web entrepreneur, Kauff man worked for AOL at the age of 11 and founded his fi rst company,
eWireless.com, at 17. He launched Soothe in early 2013. Details:
www.soothe.com
There is some appeal to massage-on-demand for the convenience of in-home services, but the benefi ts of a traditional spa will continue to lure most people into a proper spa facility
I
n general, I think the demand for spa services is growing as consumer’s perceptions of wellness expand beyond just diet and exercise to
include other key aspects such as the need for rest and recovery and the importance of emotional wellbeing. However, the pace of change in the spa
industry is becoming so fast that market disruption could be the new normal. We can no longer rely on a stable state market. Innovation and change will be somewhat constant and we all need to keep reassessing our business models and their relevance. The biggest recent disruptors in the
spa world have been the rise of medical spas and the meteoric growth of simpler massage-orientated spa offerings such as Massage Envy. To be honest, I don’t think massage-on-demand services have made a significant dent in the spa market yet. There is some appeal to massage-on-
demand for the convenience of in-home services, but the benefits of a traditional spa experience will continue to lure
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spabusiness.com issue 3 2015 ©CYBERTREK 2015
Jeremy McCarthy Group director of spa, Mandarin Oriental
most people into a proper spa facility. The advantages include added value to the service through enjoyment of the facilities, opportunities to have social spa experiences that are shared with others and the quality of the spa brand. Perhaps most importantly, many consumers will experience a deeper sense of relaxation by truly disconnecting from their day-to-day lives and escaping to a new environment designed as an immersion in tranquility. Concerning therapists, some may prefer
the independence of being on-call, but our experience is that many appreciate having a consistent schedule. They also like being part of a team and having opportunities to grow within the group – either into more management/administrative positions
or by cultivating greater expertise and specialisation as a healer in the spa. In an increasingly high-tech world,
services that are high-touch will continue to be valued and sought after. There’s a place for both massage-on-demand businesses and traditional spas to survive and thrive. The competition between the two is minimal as they cater to different customers at different times seeking different experiences.
McCarthy oversees 29 spas around the world for Mandarin Oriental, six of which are based in the US and in cities where massage-on-demand businesses already have a presence. Details:
www.mandarinoriental.com
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