MAINSTREAM HOTELS RIDING THE WELLNESS WAVE. Samantha Foster Destination Spa Management Ltd 8 th March, 2018.
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1 MAINSTREAM HOTELS RIDING THE WELLNESS WAVE Samantha Foster Destination Spa Management Ltd 8 th March, 2018.
2 AGENDA Rise of Wellness Tourism Success Model: Wellness Retreats Pro s & Con s Are retreats right for you? Alternative Models for implementing Wellness
3 RISE OF WELLNESS TOURISM Global Wellness Economy $3.7 trillion (2015) DSM Destination Spa Management - Institute of Beauty, Gorochovaya,
4 RISE OF WELLNESS TOURISM Wellness Tourism $563b
5 RISE OF WELLNESS TOURISM Market Size 2015: Wellness Tourism $563b No. Wellness Trips: 691m 6.5% of all tourism trips 9% CAGR Expenditure: $563.2b 15.6% of total tourism expenditures 6.8% CAGR (regular tourism 3.4%) i.e.: much higher spend per guest per trip Growth: projected 7.5% p.a. -> $808bn by 2020* How to capitalize on this lucrative, fast-growing market? Source : Global Wellness Institute, Wellness Economy Monitor Jan 2017.
6 WELLNESS PROGRAMS GROWTH IN SPAS ISPA survey: Does your spa offer wellness programs? up from 45% in July, Source: ISPA, Pulse magazine July 2017.
7 LOOKING TO MARKET LEADERS
8 WELLNESS RESORT RETREAT MODEL All-inclusive, multi-day packages designed for a particular health outcome, e.g. Accommodation, all meals Group exercise classes Lifestyle education and activities, e.g. cooking classes Wellness consultation and diagnostics, conducted by qualified advisor Typically 1 3 hours private therapy per day
9 WELLNESS RETREATS APPEAL Retreats seem attractive to the hotel operator, because: Increases the average length of stay; usually 5+ days Increases spend per guest, as all meals and services are provided inhouse Reduces seasonality: guests are coming for self work - weather is less important High repeat visit rate, if effective Newsworthy for marketing
10 WELLNESS RETREATS CHALLENGES To be effective, Wellness Retreats require substantial investment: Extensive facilities (for capacity 2-3 hours tx per day) Specialist rooms, e.g. colonic rooms, infrared sauna Specialist equipment: diagnostics, treatment equipment. Specialist expertise: wellness advisors, doctors (allopathic, naturopathic, traditional), nurses, physiotherapists and other holistic. F&B not just healthy. Nutritionally tailored for desired outcome and health conditions, e.g.: intolerances, hormonal balance. Training is required for all staff to integrate the wellness offer. and beyond investment
11 WELLNESS RETREATS CHALLENGES CREDIBILITY can your brand realistically be accepted by customers as a Wellness provider?
12 IMPLEMENTING WELLNESS OPTIONS Apart from Retreats, what other options exist? Services by appointment, with 3 rd party practitioners Events in collaboration with providers, e.g.: wellness days or weeks Host retreats for gurus / practitioners Partner with an established wellness brand Partner with a wellness specialist(s) to create signature offering Create a branded wellness centre / resort within an existing resort Convert entire resort to a wellness property
13 SERVICES BY APPOINTMENT Collaborate with independent practitioners to offer services by appointment or on a part-time basis. Remunerate by hourly rate, or revenue-share. PRO s Allows a variety of services, keeping fixed costs down. Can test the water for client acceptance / popularity. Good for expensive specialists who often want to maintain their own practice. CON s Less flexibility in scheduling. Less control of behavior, including service standards. Little integration into team: difficult to get cross-referrals. No unique, signature service. Limited to existing facilities.
14 CALENDAR OF WELLNESS EVENTS Creating events in collaboration with other wellness providers for specialist events, such as wellness days or weeks;
15 CALENDAR OF WELLNESS EVENTS Creating events in collaboration with other wellness providers for specialist events, such as wellness days or weeks; PRO s Gauges guests areas of interest for future planning Starts to build Wellness credibility Builds relationship with wellness providers Builds database CON s Services need to be genuinely Wellness and good quality, or can do more harm than good. Must be more than Spa. Time consuming to organize, prepare and train
16 CALENDAR OF WELLNESS EVENTS
17 HOSTING VISITING PRACTITIONERS Provide venue, hosting gurus / well-established practitioners to hold their retreats on your property.
18 HOSTING VISITING PRACTITIONERS Provide venue, hosting gurus / well-established practitioners to hold their retreats on your property. PRO s Good practitioners bring their own following Builds Wellness credibility through halo effect as long as practitioners are good! Wide variety of Retreats possible if you have good, flexible venues. CON s Limited revenue because most goes to the practitioner Discounted rooms, meals Little incremental spend Little control over what goes on during the retreat Can t use facilities for other guests during retreat period No exclusivity / ownership
19 PARTNER WITH WELLNESS BRAND August 2017: Hyatt acquired Exhale: Urban spa and fitness 25 locations in US and Caribbean
20 PARTNER WITH WELLNESS BRAND Outsource or license with an established wellness brand. PRO s Leverages credibility of the established partner brand. Access to database Reduces learning curve Minimises risk Assists staffing and training CON s Less revenue shared with partner Less flexibility need to conform to brand s standards Risk: brand needs to be a good fit with hotel s clientele No ownership
21 PARTNER WITH WELLNESS SPECIALISTS e.g. J.W. Marriott Nora Tobin as Wellness Ambassador (Dec, 2017). Initiatives rolling out in 2018: FitnessOnDemand : videos Yoga, mindfulness, HIIT. In-room on-demand and on the JW website. 3 to 30 mins. Well-Being Retreats: Multi-day retreats, focusing on personalized well-being. Fitness coaching, daily well-being seminars, offproperty excursions, spa treatments. Available at 4 U.S. properties in Healthy Meeting Meals & Breaks: group wellness offerings: healthy menu items, active meeting breaks, group activities, digitally led by Nora. Juice and Smoothie In-Room Dining Menus Delos StayWell rooms in 6 properties.
22 PARTNER WITH WELLNESS SPECIALISTS Westin engaged team of experts to develop six signature programs:
23 PARTNER WITH WELLNESS SPECIALISTS PRO s Leverages credibility of the expert. Allows for the creation of signature services and programs. CON s Risk: if relationship sours or expert s reputation is tarnished
24 RESORT WITHIN RESORT Mini-wellness resort within a mainstream resort. e.g. Mii Amo Destination Spa at Enchantment Resort.
25 RESORT WITHIN RESORT PRO s Allows separate brand for clear market positioning. Shared back of house. Can have small size (lower investment) but still efficient: economy of scale. Targets Primary wellness traveler: higher value guest. CON s Significant investment in hardware and software. Any shared personnel need to be well trained to understand different business model. Marketing to Primary wellness traveler is different to mainstream hotel guests: can t use the same approach and channels.
26 DSM Destination Spa Management - Institute of Beauty, Gorochovaya,
27 CONVERSION OF ENTIRE PROPERTY E.g. Amatara, Thailand
28 CONVERSION OF ENTIRE PROPERTY PRO s Single-minded positioning Targets Primary wellness traveler: high value High barriers to entry, so Stronger competitive position CON s Significant investment: Additional facilities Specialist equipment Specialist expertise Extensive training of ALL staff Complex communications & management systems Specialist marketing channels
29 SUMMARY Wellness Tourism will continue to grow, and is an opportunity for mainstream hotels. However, Wellness Retreats are not the best solution for all hotel types. Introduce Wellness in a way that is right for your Business Objectives Brand Budget
30 thank you! Samantha Foster
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