How to Compete in the Luxury Market Place - PowerPoint PPT Presentation


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How to Compete in the Luxury Market Place


How to Compete in the Luxury Market Place – PowerPoint PPT presentation

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Title: How to Compete in the Luxury Market Place

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

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.

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.

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

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.
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

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

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.

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

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

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

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

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

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

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

Customer-Driven Excellence
  • Customer acquisition, satisfaction, loyalty and
    retention are the keys to building long-term
  • 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

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

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
  • 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
  • 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

The Ritz-Carlton Success Story Instilling A
  • 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

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

Secret Shopper Critera
  • Was staff courteous, knowledgeable, helpful and
  • 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?


Secret Shopper Mobil Report
Instilling a Service-Driven Culture with
  • Employee selection process
  • Engage team for ideas protocols
  • Driving revenue
  • Incentives
  • Training on service protocols (S.T.E.P)
  • Employee satisfaction
  • Line up

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


Breakdown of Service Providers Target

Spa Marketing Trends and Driving Sales
  • Create Result-Oriented Experience that is
  • Maximize Guest Productivity
  • Target groups
  • Hotel Transient Guest
  • Group Guests
  • Local Groups
  • Day/Local Guests
  • Membership

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
  • Experience has to be exceptional and the staff
    has to be very knowledgeable

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
  • Spa Promotional check stuffers in the key
  • Spa check in desk in Hotel Lobby
  • Spa Dollar incentive program for all Hotel

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

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

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

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

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

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

  • 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 Incentive program for all existing

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
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
  • Sunrise, Sunset, Happy hour promotions. Spa
    points to repeat guests for slow periods.

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