How to Compete in the Luxury Market Place

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How to Compete in the Luxury Market Place

• A presentation by
• Kimberley Matheson of Natural Resources Spa
  Consultants and Suzanne Holbrook of The
  Ritz-Carlton Spa, Orlando, Grande Lakes

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The Luxury Market Landscape

• Stepping into a World-Wide Game
• Luxury Spas are going global
• more than ever before
• Moscow
• Ireland
• The Caribbean
• China
• Spas in luxury hotels are
• becoming standard for todays
• travelers.

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A New Direction for Spas In Todays World

• As the hectic workplace of 2006 weighs more
  demands on society, more people than ever before
  are turning to spas for regular maintenance of
  mind, body and spirit.
• Luxury Spa Guests are looking to spas as a place
  of healing, a place to better themselves and
  establish their goals.

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Global Trends

• Niche Marketing
• Spas focused specifically on Couples, Teens, Men
  and Pregnant Women
• Indigenous Treatments
• Using local ingredients in spa menus - blueberry
  body wraps in Maine, grape seed extract in
  lotions in Napa, citrus scrubs in Florida
• Wellness Travel
• Yoga and Massage Vacations
• Medically based Day Spas
• fastest growing segments of the spa business -
  growing 133 over last five years
• Holistic Based Spas
• continue to grow in popularity as Baby Boomers
  get older - Ayruveda, Oriental Medicine,
  Acupuncture and Hydrotherapy

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Top Luxury Hotels
The Ritz-Carlton - Managing their own
spas Four Seasons - Moving forward in spa
development St. Regis - Working with
Remede Mandarin Oriental - Working with
ESPA Auberge Rosewood Spas continue to gain
momentum in Independent Luxury Hotels globally.
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A Look into Luxury
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A Look at the Upstarts - Day Spas with Clout

• Bliss
• Exhale
• Elizabeth Arden Red Door / Mario Tricoci
• Gene Juarez

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Independent Luxury Spas

• Sasanqua of Kiawah Island
• The White Horses Spa in Doonbeg, Ireland
• Meritage Cave Spa
• Mayflower Inn and Spa
• Wine and Roses
• Cornelia

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Luxury Independent Success Story The Montage

• Montage Resort Spa the first and only spa to
  receive the coveted Five Star Rating in the
  country from Mobil Travel Guide.
• Montage exhibits exquisite attention to training
  and brand loyalty among its team.

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Mobil Star Rating System

• Mobil Spa Rating System Attributes
• Cleanliness
• Guest Convenience
• Sense of Luxury
• Physical Facilities
• Courtesy of Staff
• Product Sales Not Pushed
• Staff Technical Ability and Skill
• Guest Comfort
• Temperature
• Music
• Sensitivity to Privacy

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Mobil Three-Star Rating Requirements

• Well Appointed Facility
• Meets Needs of Guests
• Expanded Amenities including
• Fitness Center
• Mens and Womens Separate Locker Rooms
• Steam and/or Sauna
• Relaxation Area
• Minimum Menu Includes
• Massage
• Facial
• At least one type of body treatment
• Scrub
• Wrap

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Mobil Four-Star Rating Requirements

• The Four-Star Spa, in addition to the Three-Star
  requirements include
• Luxurious Experience
• Expanded Facility
• Elegant and Serene Environment
• Personalized Service
• Amenities Including
• Single Gender Relaxation Lounges
• Plunge Pools
• Single Gender Whirlpools
• Treatments Including
• Massage
• Facial
• Body Treatment Variety
• Salon Services

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Mobil Five-Star RatingRequirements

• The Five-Star Spa, in addition to the Four Star
  Requirements includes
• Superlative Service
• Distinctive Luxury Environment
• Extensive Amenities
• Service Levels Above and Beyond
• Encourages Better Relaxation
• Wide Array of Treatments
• Incorporating International Themes and Products
• Attention to Detail from Arrival to Departure

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• How can you create long-term success in the
  luxury market?

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Foundation of Long-Term SuccessCustomer Driven
Excellence and Spa Brand Development

• Customer Driven Excellence
• Customer and Market Focus
• Creating a Brand
• Developing a Spa Story
• Following through with Brand Idea on every aspect
  of business
• Brand Cop

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The Extra Step

• A recent study by the Spa Association (SPAA)
  revealed that 1/4 of all spa goers are
  disappointed in their spa experience, before even
  getting their treatment!
• The Key to Success is Unparalleled Customer
  Service.

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Customer-Driven Excellence

• Customer acquisition, satisfaction, loyalty and
  retention are the keys to building long-term
  success
• Developing scripting, systems and structure based
  on customer relations to maintain consistent
  excellent service
• Connect with each client before, during and after
  their visit.
• Attention to Detail

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The Malcom Baldridge Award

• Awarded to Superior Customer Service
• Over 100 hours of Customer Service logged by
  every employee annually
• Awarded to the next speaker, Suzanne Holbrook,
  Premier Ritz Carlton Spa Director

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The Ritz-Carlton Spa Positioning Statement

• For affluent and discerning global travelers who
  seek a holistic approach to wellness and who want
  to experience the magic of the location they are
  visiting.
• The Ritz-Carlton Spas provide rejuvenation and
  restoration experiences that are designed to
  achieve a sense of immediate and lasting well
  being, tailored to each guests personal wellness
  needs, and infused unique elements of the local
  culture.
• Because The Ritz-Carlton is the only global
  network of spas with an engaging staff that
  thoughtfully anticipates and fulfills guests
  needs, and authentic treatment rituals that
  incorporate regional ingredients and restorative
  environments.

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The Ritz-Carlton Success Story Instilling A
Culture

• The Elements of the Gold Standards are the
  foundation that provides a platform to deliver an
  unsurpassed Spa experience
• Mission Statement
• Credo
• Motto
• Three Steps of Service
• The Twenty Basics
• The Employee Promise

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How do we measure?

• The Ritz-Carlton Spa Evaluation Project
• Anticipating the guests expectations using
  the Mobil rating criteria as a guide.
• Measurement Tools
• Comment cards
• Guest Satisfaction Survey Gallup
• Financial Performance
• ESS (Employee Satisfaction Survey)
• Secret Shopper reports

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Secret Shopper Critera

• Was staff courteous, knowledgeable, helpful and
  articulate?
• Were you addressed by name during your visit?
• Did agent try to up-sell spa products?
• Were there candles, flowers or plants to enliven
  your experience?
• Was the pool free of debris and dirt?

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Secret Shopper Mobil Report
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Instilling a Service-Driven Culture with
Incentives

• Employee selection process
• Engage team for ideas protocols
• Driving revenue
• Incentives
• Training on service protocols (S.T.E.P)
• Employee satisfaction
• Line up

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Incentives

• Service providers are set weekly targets.
• Revenue performance boards are in place for daily
  view and achievement.
• This encourages a competitive edge and revenue
  awareness
• Prizes and recognition at Monthly meetings are
  rewarded to the highest achievers

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Breakdown of Service Providers Target

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Spa Marketing Trends and Driving Sales

• Create Result-Oriented Experience that is
  Memorable
• Maximize Guest Productivity

• Target groups
• Hotel Transient Guest
• Group Guests
• Local Groups
• Day/Local Guests
• Membership

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Hotel Leisure Guest Overview

• Feel that luxury hotels, particularly resorts
  need to have spas
• The spa needs to stimulate all 5 senses
• See, Hear,Touch,Taste
• Smell
• Accepts that the cost will be higher than a day
  spa
• Experience has to be exceptional and the staff
  has to be very knowledgeable

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Hotel Leisure Marketing

• Spa collateral seen visually in the guest rooms
• A spa promotional video and channel
• Turn down card and small Spa amenity (work with
  vendor)
• Spa Promotional check stuffers in the key
  packet
• Spa check in desk in Hotel Lobby
• Spa Dollar incentive program for all Hotel
  Employees

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Group/Conference Guest

• Pro-active Group Sales Coordinator
• Create MSE and Sales Manager incentive to promote
  awareness (based on winning Spa Dollars)
• Meeting planner delighter program
• Spa Check in desk on all group arrival days,
  including non Spa contract groups

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Local Hotel Groups

• Capturing Spa Dollars from Other Hotels
• Creating relationships with sales department from
  other hotels in your region
• Offering referral incentive programs

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Event Marketing

• Baby Showers, Girlfriend getaways
• Complimentary seminars that promote spa lifestyle
  talks
• Participating in local charities or community
  events
• Create incentive packages for
• Team building outings for corporations, reward
  incentives and holiday parties for their
  employees.
• Tread the Sidewalks!!

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The Day Spa User OverviewOur Bread n Butter

• Look for easy access and fair value
• Have a strong-emotional relationship with the
  individual who provides the treatment the
  hairdresser syndrome
• Familiarity is key with spa and service providers
• Needs an incentive/motivator to try a new spa
• Word of mouth is very important for reputation
• Requires much more promotion to make change based
  on competition, costs and hassle

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Local/Day Guest Marketing

• Target repeat guests with a special welcome back
  invitation to visit the spa
• VIP Loyalty program
• Promote and develop relationships with Local
  Realtors/Travel agents and Home Owner
  associations

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Local/Day Guests Cont.

• Donate 20 Spa gift cards to every Guest at
  Charity functions instead of donating one
  treatment
• Promote special service and prices for
  traditionally quiet days
• Gift Card sales desk outside Meeting room
  functions
• Invite specific Interest groups
• Local Medical Centers (i.e. Hospitals and
  Doctors Offices)

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Memberships

• Introduce a limited number of exclusive Spa
  Memberships to the local community
• Send invitations to all loyal repeat guests for
  exposure to the privilege membership program
• Host member guest events to expose and encourage
  referral
• Referral Incentive program for all existing
  members

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PR Hooks Trends

• Avant and Apres SoBe treatments designed to glam
  you up for the South Beach scene and cleanse you
  with detoxification afterwards
• Ashiatsu traditional barefoot Asian massage
• Girlfriend Gossip, Martinis a Manicure, Sounds
  like the perfect end to a tough day

Keep cutting edge services and unusual treatments
on the menu and in the press
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MAXIMIZING YIELDHow To Get More Dollars Into
Your Spa

• Busiest times only offer premium treatments.
• You can remove certain treatments from the menu
  during peak periods.
• Different consumers may be willing to pay
  different prices at different times. (peak low
  times) the old supply and demand rule.
• Forecast the demand so you can afford to turn
  business away to allow for premium treatments.
• Sell packages only on need days (Monday through
  Thursday).
• Sunrise, Sunset, Happy hour promotions. Spa
  points to repeat guests for slow periods.

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Now you know a few secrets for Competing
in the Luxury Spa Market!