That's right: spas. Hotels -- from branded, global chains catering to business class or high end, jet-setting travelers -- have (or are building) spas. Ditto for boutique establishments and casino hotels that cater to guests seeking luxurious amenities. In fact, hotels of every stripe are hopping on this new trend. Note, we said trend. Not fad.
Spas in hotels are coming in at a fast and furious pace, and they're here to stay. New hotels are building eye-popping, state of the art spas right into their plans, while existing properties are replacing health clubs and gyms as fast as they can with spas. And for the hotel chains whose guests are one-night, time-pressed young business travelers, who won't necessarily take the time to visit an in-house spa, what better way to indulge them with a pampering experience than to build private, spa-like bathrooms into their suites?
To get more insights on the latest marketing strategy in the hospitality industry, Daily Fix readers may wish to read recent Business Week article "Hotel Chains Recharge with Spas."
Let's face it: in this frenetically-paced, cold world, nothing appeals to us more than being pampered and nurtured a bit. Even though luxury hotels can charge substantial rates for spa treatments, industry reports show response has been excellent.
In the Business Week article cited above,
"According to the trade organization International Spa Association, North American spas, including those located within hotels and resorts, have seen an average annual growth rate of 16% between April, 2004 and August, 2006. U.S. spas drew $9.7 billion in revenue in 2005 (the latest statistics available). The growing wellness industry and the 'masstige' or mass-market luxury, phenomenon have helped increase he popularity of spa treatments".
Interestingly, the shift here has been away from using hotel-branded personal care products, in favor of famous spa brands. In fact, great care is being taken by many chains, it seems, to align the hotel brand with the correct spa brand. Co-branding can be a very effective marketing tool. Again: it's all a matter of the right alignment and hotel and spa brand having equally strong assets that complement each other.
Starwood Hotels are planning on featuring Bliss products in its new aloft hotels, beginning in 2008. Starwood now owns the Bliss brand, which originated in the Bliss Spa in New York City. L.A.'s Sofitel's LeSpa uses only Decleor and Carita products while the Beijing and Paris Sofitels will feature Lancome products.
Harrah's Atlantic City casino and hotel features Red Door Spa, a famous luxury brand owned by cosmetics giant Elizabeth Arden. Harrah's Atlantic City senior VP and general manager, R. Scott Barber, was quoted as saying:
"Today's travelers have come to expect that there will be a spa at every top property. With the opening of the Red Door Spa at Harrah's Atlantic City, we are expanding our lifestyle options for guests and becoming a comprehensive destination resort. This allows us to expand our reach, our customer base, and our revenue."
Mr. Barber's citing of offering another lifestyle option that generates additional revenues is right on the money (pun intended).
Some hotels have gone so far as to rebrand and reposition themselves due to their spas. For example, the Newport Beach Marriott in southern California has been renamed: Newport Beach Marriott & Spa after a huge renovation. That goes to show us how much draw, and how many dollars, the Marriott chain thinks this move will generate.
Questions: what do you think of hotels co-branding with spa lines? What other examples of co-branding have you seen work well together? We'd like to hear from you. . .
