Financial Daily from THE HINDU group of publications
Thursday, Mar 10, 2005
Financial Daily from THE HINDU group of publications Thursday, Mar 10, 2005 |
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Marketing
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Events Right model key to spa biz Our Bureau
Chennai , March 9 THERE is immense market potential in India for spas but coming up with the right model for this nascent business is the challenge, said Mr Samir Patel, General Manager (Spa Division), Indian Hotels Company. Speaking at BeauWell India 2005, Mr Patel said that in the case of hotels, spas are turning out to be the second largest revenue generators (after rooms). In the case of Taj hotels, where he is spearheading the launch of the Jiva brand of spas, 20-40 per cent of the everyday occupancy accounts for spas' patronage in its resort hotels and 5-20 per cent in its business hotels, he said. According to him, spas can contribute up to 15 per cent of a hotel's revenue. They are the top differentiators. Globally, day spas accounted for 75 per cent of spa locations. Resorts spas/hotel spas were the next big category, accounting for 12 per cent of the spa locations. Health club spas are also emerging as contenders to become a dominant model, he said. Mr Patel said the country had many locations that would suit the creation of destination spas, a popular model worldwide. The lack of trained manpower, the stigma attached to the profession, the narrow base of equipment suppliers, lack of exposure to spa operations of international standards and the fact that India has not been positioned as a wellness destination are the challenges to the spa business in the country. However, those interested in the business could capitalise on these factors: 93 per cent of travellers looked for day/resort spas, demand for spas is going up, low manpower costs, and the opportunity that the nascent business provided for trained spa specialists and equipment manufacturers. Mr Patel made the point that "spas are not and should not be ayurveda" as ayurveda was an entire science by itself and not designed for spas. He emphasised the importance of adopting international expertise, processes and products. Mr Rashmin Perla, Managing Director, GEO Spa Fitness, which equips and designs spas, said equipment was important but that spas should not look like sweat shops. Design should be leveraged to create the wellness value proposition, he said. Madeline McGrath, a spa consultant based in Dubai, said all the five senses had to be pleased to create the right environment. Spas were not "pamper parlours" any longer; they are places one went to for holistic inner and outer well-being, she said. The speakers also noted that men accounted for over 30 per cent of spas' clientele globally.
The company will invest about Rs 50 lakh in each of five units; in some cases, the investment would go up to about Rs 75 lakh depending on the kind of equipment that will be installed. These will be mainly day spas and will be up and running by the end of the year, he said.
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