Spa business the global resource for spa professionals - in association with spa business & spa opportunities - Global Wellness Institute

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Spa business the global resource for spa professionals - in association with spa business & spa opportunities - Global Wellness Institute
in association with spa business & spa opportunities

        spa business
         2 0 1 5                    H A N D B O O K

                      the global resource for spa professionals

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Spa business the global resource for spa professionals - in association with spa business & spa opportunities - Global Wellness Institute
TRENDS

Spa foresight™
What’s coming down the track for the global spa and wellness industries? Spa Business
examines the trends, technologies and strategies which will shape the future

1    Invisibles

2    Faecal transplants

3    Panama

4    Massage-on-demand

5    ASEAN market

                                                                                                                                PHOTO: SHUTTERSTOCK/GAUDILAB
6    Attractions & spa

7    Cuba

8    Tiered offering

9    Tribal investments

10 Sport & spa

11 Next gen skincare
                                    Invisibles will enable us to live and exercise free from intrusive devices
12 Haemoglobin testing
                                  THE NEW WEARABLES
13 Sexual wellness
                                  1. INVISIBLES
14 Biomimicry
                                  As wearables innovators and activity app        complete picture of what’s going on with
15 Bintan                         developers such as Jawbone, FitBit and          our health, rather than simply measuring
                                  Strava battle for market share, the next        and reporting on one aspect of it.
16 Halal tourism
                                  phase of activity and wellness monitoring          Invisibles will enable us to more accu-
17 Animal movement                is already being imagined and prototyped        rately understand and diagnose disease
                                  quietly behind closed doors.                    and in turn to establish better methods
18 Age-friendly design               We will move from a time of wearables        of prevention and adherence to wellbeing
                                  to a new evolution in body computing            programmes through lifestyle change.
19 Face massage                   – the age of invisibles – when sensors             They’ll also return us to a more natural
                                  are integrated into the body to give a          state, by removing the need to carry
20 Spa & wellness real estate
                                  continuous data stream and establish a          around intrusive and clonky devices.

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Spa business the global resource for spa professionals - in association with spa business & spa opportunities - Global Wellness Institute
PHOTO: SHUTTERSTOCK/PETER BERNIK
  Faecal transplants can restore balance to the gut and underpin health and the ability to digest and absorb food

HEALING THE GUT

2. FAECAL TRANSPLANTS
The health of the gut directly determines     such as candida, IBS, C diff and a range      metabolise food: when the gut bacteria
the vitality and wellbeing of many aspects    of other highly debilitating disorders.       of an obese person is transplanted into
of health and controls key systems within        All these conditions have been             someone of normal weight, in some cases
the body, such as the immune system.          successfully treated with faecal trans-       they, in turn, become obese.
It’s also now known to have a direct          plants – taking faecal matter rich in            We predict that a trade in premium gut
impact on the brain and mood.                 gut bacteria from a healthy person and        bacteria will emerge, with individuals who
   Modern life is hard on gut flora –          – through an approved medical process –       can show the high quality of their biome
antibiotics and other medication and          inserting them into the gut of the patient,   being paid for samples, and spas offering
refined food upsets the delicate balance.      where they immediately colonise.              customised faecal transplants that give
   Once the gut flora is damaged, chronic         There’s evidence that the nature of gut    specific outcomes to guests in terms of the
and acute health conditions can develop,      bacteria directly determines the way we       impact the transplant has on their health.

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Spa business the global resource for spa professionals - in association with spa business & spa opportunities - Global Wellness Institute
TRENDS: SPA FORESIGHT™ 2015

CRUISE SHIP HOTSPOT

3. PANAMA
In 2016 a new lane will open at the
Panama Canal, doubling the capacity
of the route that links the Pacific
and Atlantic Oceans and effectively
creating a cruise line super highway.
The canal, a visitor attraction in its
own right, will soon be able to host
the world’s largest cruise ships, which
disembark 5,000 passengers at a
time. Notably, cruise liners are also
gaining 6.55 per cent more customers
annually. As the canal forms the

                                                                                                                                      PHOTO: FUSION MAIA DA NANG, VIETNAM
foundation of Panama’s economy, it’s
predicted that GDP will double in the
next eight years. All of these signs are
good news for existing and upcoming
spa operators in the country.

BUSINESS DISRUPTION

4. MASSAGE-ON-
                                             We predict a rise in therapist standards when the new market comes into effect
   DEMAND
From Zeel and Soothe in the USA, to        PAN-ASIAN ECONOMY
Vaniday in Brazil and Urban Massage
in the UK – massage-on-demand              5. ASEAN MARKET
businesses are cropping up all over
the place and are set to shake up the      Spa businesses in South-East Asia will          Increased competition in recruiting
sector. They enable customers to book      start to feel the impact of the ASEAN        skilled therapists and managers, a rise in
same-day appointments – sometimes          Economic Community (AEC) when it             rival businesses, a higher need for differ-
even within the hour – with mobile         comes into effect at the end of 2015.        entiation and a greater need for language
therapists in the area. These new          Likened to the European Union, the AEC       skills are perceived as challenges of the
market entrants could whet consumer        is a single market initiative led by the     AEC (see p74). But on the plus side,
appetites for spas, but they could also    Association of South-East Asian Nations      operators also feel the benefits will
take away custom, not least because        (ASEAN) made up of 10 countries –            include more industry investment, higher
they offer an online community and         Thailand, Singapore, Indonesia, Malaysia,    spa and therapist standards, a wider
convenience – two things which the         the Philippines, Brunei, Cambodia, Laos,     diversity of treatments and employees
majority of spas are lacking.              Myanmar (Burma) and Vietnam.                 with different skills from other countries.

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Spa business the global resource for spa professionals - in association with spa business & spa opportunities - Global Wellness Institute
skincare company amorepacific has created a visitor attraction out of its factory in south Korea

heightened experiences

6. ATTRACTIONS & SPA
The visitor attractions market has               Innovations such as immersive environ-        Other overlaps could include the use
emerged as a multi-billion dollar sector.      ments, virtual reality, haptic technology,   of 360 degree screens and multimedia
It’s growing fast and attracting significant   facial recognition software and aug-         to deliver ambience or to create another
investment worldwide from major players        mented reality could all be deployed to      layer to the spa experience.
in businesses such as theme parks, brand-      create amazing experiences for custom-          Early adopter, Asian skincare brand
lands, museums and science centres.            ers within the spa and wellness industry.    AmorePacific, (see Spa Business 2015
   We believe that the technology used           In addition, the attractions industry’s    issue 2, p76) has worked with theme park
within the attractions industry has huge       expertise in creating vivid customer         designer BRC Imagination Arts to create
potential for use in the development of        journeys and high levels of engagement       an award-winning brandland in South
spa and wellness facilities and expect         can also be used by spas to heighten and     Korea that mixes a spa theme and visitor
significant collaborations to emerge.          elevate the experience being delivered.      attraction. We expect more to follow.

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Spa business the global resource for spa professionals - in association with spa business & spa opportunities - Global Wellness Institute
TRENDS: SPA FORESIGHT™ 2015

OPEN FOR BUSINESS

7. CUBA
Tourism is set to take off in Cuba
as diplomatic relations with the USA
thaw for the first time in 30 years.
In April, President Obama recom-
mended the country be taken off the
USA’s terrorism list, and the number
of Americans who are visiting Cuba
has already increased significantly
– by 36 per cent – since the start of
the year, according to The Associated
Press. While business and tourist
embargoes with the USA remain
intact, spa investors who strike up
partnerships in the communist coun-
try now will be ahead of the game.

ON A LEVEL

8. TIERED OFFERING
For years the airline and hospitality
industries have reaped the rewards          The Ngai Tahu tribe in New Zealand is investing in hot pool complexes
of appealing to a broad spectrum of
customers at the same time. Those         RESTITUTION
who can afford upper class seats or
suites get access to nicer food, more     9. TRIBAL INVESTMENTS
space and better service. Yet, simul-
taneously, there’s still a perfectly      As tribal peoples the world over receive        In New Zealand, the Ngai Tahu tribe
acceptable range of options for those     restitution from governments for the         has announced it will invest in a new hot
who are on a budget.                      loss of their lands and rights, some are     pools complex, while in Australia, the
   It’s time spas ventured down the       choosing to invest this money in leisure,    Jawoyn people have invested in Cicadia
‘tiered offering’ route. Such a move      tourism and increasingly in spa.             Lodge, an eco retreat, and have also
would impact all aspects of a facility       The world sat up and took notice in       moved into adventure tourism.
– from design, therapies and service      2007 when the Seminole Indian Tribe             We expect this to become a trend as
to pricing and marketing – but it would   of Florida bought hotel, casino and          human rights successes mean the pace
also widen the scope for business         hospitality business Hard Rock Café          of restitution increases. Many tribes also
rather than limiting it to just one       International in a huge deal which was       have indigenous treatments and customs
customer segment.                         just shy of a billion US dollars.            which complement the spa market.

18   SPA BUSINESS HANDBOOK 2015                                                                           www.spahandbook.com
Spa business the global resource for spa professionals - in association with spa business & spa opportunities - Global Wellness Institute
Divers enjoy swimming in 4,300 cubic meters of warm spa water in Y-40, the 40m dive tank at the Hotel Terme Millepini, Italy

HARNESSING PASSIONS

10. SPORT & SPA
As the spa market matures and the               In Italy, for example, the four star Hotel      The pool has a depth of 40m, with
demand for niche spa offerings becomes       Terme Millepini has conceived the Y-40          intermediate caves for technical under-
greater, operators will look for ways        – the world’s deepest swimming pool –           water diving. It supports a wide range
to differentiate their spas. We believe      otherwise known as The Deep Joy.                of activities year round, from beginners’
combining sport and spa will be a               It offers diving enthusiasts the freedom     scuba diving training to professional
very powerful and attractive option for      to dive and swim without a wetsuit, while       diving for experts, and photo sessions for
collaboration and investment.                still enjoying the pleasures of spa.            photographers and film producers.
  There are great synergies between the         Measuring 21X18m on the surface, the            Choose pretty much any sport and
two markets and sport-orientated spas        pool contains 4,300 cubic meters of spa         a spa connection could be developed.
would find an existing group of highly        water which is maintained at a constant         We expect to see more this kind of
engaged consumers to tap into.               temperature of 32-34˚C.                         investment going forward.

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Spa business the global resource for spa professionals - in association with spa business & spa opportunities - Global Wellness Institute
TRENDS: SPA FORESIGHT™ 2015

MORE THAN JUST PRODUCTS

11. NEXT GEN
    SKINCARE
How we feel and what we eat has a
visible impact on our appearance,
so it stands to reason that the next
generation of skincare will be about
more than just the creams we put on
our face. Dermalogica’s Face Mapping
tool already links zones on the face
to the health of internal organs. Other
product houses such as Comfort
Zone, Gazelli and Elemis are tapping
into lifestyle and nutritional advice
with their packages and prescriptions
too. We expect to see much more of

                                                                                                                                          PHOTO: SHUTTERSTOCK/LEV RADIN
this, but wonder what ramifications
it will have on the workforce and the
new skills demanded of therapists.

IRON LEVELS

12. HAEMOGLOBIN
                                              Dita Von Teese is heading up a sensuality programme at Canyon Ranch
    TESTING
We’re led to believe that iron-rich food    BEYOND THE BEDROOM
is good for you, however, research
shows that enough is enough and             13. SEXUAL WELLNESS
too much iron in the system can be
toxic and oxidising and can lead to the     USA destination spa Canyon Ranch has           sex counselling and sensual healing
development of a range of diseases.         teamed up with burlesque icon Dita Von         therapies. Since launching in 2013, Shh
   Post-menopausal women are espe-          Teese to create a programme which covers       (Sensual, Healing, Harmony) Global has
cially vulnerable to high iron levels: as   sensuality, seduction and discussions          held six retreats in the UK and Ibiza for up
menstruation ends, they can climb to        about the health benefits of sexuality. Dr      to eight women. In 2016 it will host twice
levels which are detrimental to health.     Nicola Finely, who heads up the talks, says:   as many retreats to meet demand.
   With an ageing population, this          “Respecting one’s sexuality is an important       While a taboo subject (sometimes
presents opportunities for spas to          element of living a full and happy life.”      understandably so in spas), sex and
offer haemoglobin testing and advice           Meanwhile in Europe, one company            sexuality is important to wellbeing and
on this health issue. The solution is       is experiencing much demand for its            we expect more operators to explore this
simple too – give blood.                    luxury sensuality retreats which include       trend with sensitivity and integrity.

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Spa business the global resource for spa professionals - in association with spa business & spa opportunities - Global Wellness Institute
PHOTO: © MARC FORNES
  Marc Fornes’ nonLin/Lin Pavilion has been inspired by coral and can be replicated infinitely

LEARNING FROM NATURE

14. BIOMIMICRY
Increasingly architects and designers are      of striking examples of biomimicry in the         In New York, David Benjamin’s Hy-Fi
turning to nature for inspiration – not just   leisure industry, including thermo-metal       art installation is built entirely from
for the way buildings look, but also in the    cladding that ‘breathes’ like human skin to    fungus, hemp and corn stalk bricks,
way they function. Biomimicry, the act of      heat or cool a building; and super-efficient    which grew naturally into shape over five
applying biological principles to design,      solar panels modelled on butterfly wings.       days. “Biological systems have amazing
hasn’t made its way into spas (yet). But          In France, the nonLin/Lin Pavilion – con-   properties like adaptation, self-organisa-
we see it as the next step for a sector        sisting of perforated aluminium sheets that    tion, self-healing and regeneration,” he
that’s already embracing sustainable and       can be replicated infinitely – emulates the     told Inhabitat blog last year. “Imagine our
wellness-focused properties.                   morphology of coral. Meanwhile, Rome’s         buildings having the same properties.”
  In CLADmag – a sister magazine to Spa        Jubilee Church uses self-cleaning cement       QRead more about this thought-provoking
Business – we recently outlined a number       that is inspired by photosynthesis.            topic in CLADmag: http://lei.sr?a=W1T2p

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Spa business the global resource for spa professionals - in association with spa business & spa opportunities - Global Wellness Institute
TRENDS: SPA FORESIGHT™ 2015

THE NEW BALI

15. BINTAN
Bintan, in Indonesia, has often been
overshadowed by Bali and Thailand
as a holiday destination even though
it’s only a 45-minute boat ride from
Singapore. But that could be about to
change with a new international airport
opening in mid-2015 and a number
of revamped and fresh hotels (all with
spas, naturally) arriving on the scene.
Alila plans to open a resort there, with
a sizeable spa, in 2016, and Canyon
Ranch has chosen the location for
its first destination spa outside the
USA (see p36). In short, investing
in facilities on the island would be a
smart move – a move which we expect
other spa operators to spot.

UNTAPPED NICHE

16. HALAL TOURISM
                                             A new breed of exercise class draws inspiration from the animal kingdom
Muslims spent US$140bn on inter-
national travel in 2013, representing      WILD AT HEART
almost 13 per cent of global travel
expenditures, according to a report        17. ANIMAL MOVEMENT
by Crescent Rating. The agency is
one of a growing number of firms that       Crawling on all fours, swinging from bars,     concept is making its way into gyms. Early
rate facilities on their adherence to      leaping between obstacles: there’s a whole     market arrivals include MOV’ training by
Islamic traditions, such as no alcohol     new breed of group exercise class that         Parkour Generations; the Australian-born
and gambling, serving halal-certified       draws inspiration from the animal kingdom.     ZUU concept; and Animal Flow classes
food and offering gender-segregated          These classes, which focus on body-          offered at USA gym chain Equinox.
leisure facilities. Spas in Muslim         weight-based movement, rather than the           All of the classes deliver a full-body
countries already offer separate male      use of equipment, are a great fit for spas      functional workout. Crucially, they’re
and female areas, but we predict           because of their kit-free, natural approach.   also great fun, helping participants to
further segregation in design and in         Wildfitness has been running ‘wild            rediscover the joy of movement.
facilities outside these regions as the    moving’ fitness holidays in Africa and          QRead more in Health Club Management
growth of halal tourism picks up pace.     Europe for a few years, but now the            magazine: http://lei.sr?a=x6L9b

22   SPA BUSINESS HANDBOOK 2015                                                                              www.spahandbook.com
PHOTO: SHUTTERSTOCK/GOODLUZ
  Baby boomers are the most influential generation, yet many companies are ignoring their needs as they get older

RESPECTING YOUR ELDERS

18. AGE-FRIENDLY DESIGN
Accounting for around 450 million people,     spas in hotels and generally they’re not      to remember, let alone older adults with
baby boomers are one of the most influen-      age-friendly because they just haven’t        cognitive issues. Staff are sometimes
tial generations in the world. They’re also   given thought to it.” It’s about subtle       soft-spoken and may have a foreign accent,
the main market for spas. But as these        changes as well as obvious ones, he           making it harder to hear them... The point
51- to 69-year-olds age, their biological     says. If a non-slip floor looks wet, for       is, if you made these things age-friendly
and psychological needs change too.           example, people will still change the way     everyone would benefit.”
   The Silver Group in Asia has developed     they walk and are just as likely to fall.        Spas that start now to assess and
an age-friendly AF Audit™ tool that helps        But be mindful that baby boomers           adjust their facilities to best serve the
companies such as Accor understand            don’t want to be singled out, adds Walker.    50-plus age market will be one step ahead.
the needs of older consumers. CEO Kim         “When you enter a spa, you’re bombarded       QRead more in Spa Business magazine:
Walker says: “We’ve evaluated a lot of        with instructions that most people struggle   http://lei.sr?a=K1y5p

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TRENDS: SPA FORESIGHT™ 2015

FACE FORWARD

19. FACE MASSAGE
Facials are a best seller for spas, with
ever more complex rituals on offer.
   However, just as body treatments
include everything from a simple mas-
sage to a complex treatment that involves
wraps and scrubs, so we expect spas to
evolve fuller facial menus which include a
new addition – a face massage.
   Face massage is a technical treatment
that manipulates and releases the

                                                                                                                                                                                   PHOTO: SHUTTERSTOCK/MAKSIM SHMELJOV
muscles of the face, head and neck,
relieving tension, re-balancing muscles
and improving lymphatic drainage, but
without heavy product use.
   It can be anti-ageing, relieve the side
effects of tension behaviours such as
teeth grinding, and help with headaches
and puffiness around the eyes.
   There’s a limit to how often facials can
be delivered, but face massage can be
done regularly, so would be a profitable,
complementary addition to the menu.                                                    Spas could offer face massage as part of a package with facials to upsell regular clients

                                                                                     LIVING WELL

                                                                                     20. SPA AND WELLNESS REAL ESTATE
                                               PHOTO: SHUTTERSTOCK/DUDAREV MIKHAIL

                                                                                     The lifecycle of the spa and wellness real        We expect wellness real estate to boom
                                                                                     estate market is following the classic         as a sector in the next five years, as the
                                                                                     growth curve, starting out with high end       property market continues its rebound
                                                                                     offers, but with niche and mass market         from the global recession, and for well-
                                                                                     products now very much on the horizon.         ness to be a key differentiator in giving a
                                                                                        We know adding spa and wellness to          competitive edge to developments.
                                                                                     hotel rooms and residential developments          This trend will play to consumers’
                                                                                     gives up to a 30 per cent uplift in value at   increasing interest in wellness and spa,
                                                                                     the top end of the market; what’s yet to       as this is translated into a commitment
                                                                                     be established is the premium that will be     to living in an environment that is more
  No longer the preserve of the very wealthy                                         achieved in the mid-market.                    conducive to good health.

24   SPA BUSINESS HANDBOOK 2015                                                                                                                        www.spahandbook.com
SPA FORESIGHT™ THE ARCHIVE

2014                                              Q Pop-up   spas: nimble solutions                   2010
Q Loneliness:   bad for health                   Q New  allies: shared aims                          Q Spa  art: in the picture
Q Oil, gas and solar: global hot spots           Q Cellulite: female obsession                       Q Four  star spas: the middle road
Q Edible environments: growing interest          Q Home spa: personal services                       Q Menu engineering: fine tuning
Q Playing with food: taste sensation             Q Childhood obesity: teaching self-care             Q Spa memberships: join the gang
Q Neuroplasticity: there’s a thought             Q Mobile biometrics: expert engagement              Q Social spa-ing: lighten up
Q Cellular health: striking a balance            Q Sex in spas: no longer taboo                      Q Spa niching: pushing boundaries
Q Robot therapists: automation                   Q Spa brands: moving into retail                    Q No appointment needed: flexi-time
Q War zones: a new perspective                   Q Hand & arm massage: smartphone relief             Q Online learning: surf school
Q Fats & carbs: the new superfoods               Q Repeat business: keeping loyal                    Q A call for scientific proof: giving evidence
Q 3D printing: product will be printed on-site   Q Africa: in sight of change                        Q Heating up: wellness tourism;
Q Predicting purchasing: weather channel         Q Variable pricing: software support                   retail brands turn pro; eco-
Q No front desk: welcoming guests                Q Last impressions: powerful recall                    packaging; social networking
Q Spa boom in Japan: the Olympic effect          Q Exercise: the key to wellbeing
Q Virtual trainer: access to experts             Q Hospital spas: provable outcomes                  2009
Q Bad products: lawsuits on the horizon                                                               Q Spa  benchmarking: measuring up
Q Over nourishment: too                          2012                                                 Q Beautiful view: consumer brands
   much of a good thing                           Q Budget  spas: low cost & widespread                  explore spa potential
Q Circadian aware: setting the rhythm            Q Corporate   wellness: support staff               Q Brand diversification:
Q Microgyms: specialist fitness                   Q Education overhaul: starting from scratch            multiple personalities
Q Gut health: the second brain                   Q Deal sites: what’s next?                          Q Yield management:
Q Clean air & water: the basics are now a USP    Q Beauty brand power: what’s in a name?                making the most of it
Q Facial recognition: tuning in                                                                       Q Travel spas: on the move
   or just plain creepy?                          2011                                                 Q Hair spa services: head first
Q Wellness cities: hubs for health               Q Express  treatments: speeding up                  Q Net worth: marketing, gifting
                                                  Q Spas  seduced by beauty: sitting pretty              and booking websites
2013                                              Q Tracking & analysing spa                          Q Diagnostic spas: testing, testing
Q Fresh  food deliveries: ready prepared            data: number crunching                            Q Organic skincare certification:
Q Online  reviews: star performance              Q Location-based marketing: on the map                 setting standards
Q Wearable tech: Google glass                    Q More serious skincare: face value                 Q Radio frequency identification
Q Death: end-of-life care                        Q Discounting for volume deals: bulk order             systems: every step you take
Q Emotion: engaging the heart                    Q Treatment room size: room                         Q Ethical products and operations: fair play
Q Skills register: get enlisted                     for improvement                                   Q Olfactory marketing: smells good
Q Glute massage: the bottom line                 Q The rise of part time staff : half measures?      Q Getting hotter: real estate; medical
Q More with less: getting creative               Q International marketing                              tourism; sustainability; spas for the
Q Delicious extras: small & powerful                partnerships: cross country                          boys; sleep health; spa bedrooms

QAbout the authors:                                                          Katie Barnes has a 14-year career in international
Liz Terry has been writing about and analysing                                spa, beauty and health media. She’s managing
the global leisure industries since 1983. She’s                               editor of Spa Business magazine and was
editor of Spa Business and Spa Opportunities                                  launch editor of the Spa Business Handbook.
magazines. Email: lizterry@spabusiness.com                                    Email: katiebarnes@spabusiness.com
Twitter: @elizterry                                                           Twitter: @SpaBusinessKB

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