“[ If ] we want to guide the world toward greater well-being , we have to start internally with our staff . So , we ' ve tried to ... become much more individualized in our approach to retaining our talent .”
— ALEXANDRA WALTERSPIEL
might seem like heresy , but … if I can take 20 to 25 percent of my labor away , I can then take that money and really pay my team members in therapy and deliver proper market salaries and wages … that becomes a virtuous circle .”
Alexandra Walterspiel , chief operating officer for Sensei Wellness , added that spas may have to rethink how they utilize and support service providers to minimize turnover and stabilize staffing situations .“ Instead of saying ,‘ Okay , we ’ re going to offer this particular treatment , now let ’ s find a therapist who can do it ,’ we find that amazing therapist and then say ,‘ What treatments can we build around that ?’” Walterspiel said .“[ If ] we want to guide the world toward greater well-being , we have to start internally with our staff . So , we ’ ve tried to … become much more individualized in our approach to retaining our talent .”
THE PRICING QUESTION As demand for spa services has risen and remained high in many places , many spas have responded by raising prices , often facing little to no sensitivity to those increases from guests . During the Town Hall , participants were asked about pricing going forward and whether the current situation is sustainable .
For Canyon Ranch CEO Jeff Kuster , pricing should be seen as a function of not just what a given spa ’ s demographic will pay ( which of course varies by spa type and location ), but on crafting an experience that leaves guests feeling well-served by their investment .“ We ’ re not really competing for a share of wallet in our space , we ’ re competing for a share of time . Our guests can typically afford us multiple times if they want , so it ’ s all about us creating that relationship and giving them value and a reason to come back ,” Kuster explained . “ It ’ s more about ,‘ Are we delivering enough for what we ’ re charging ’ versus ,‘ Is the price too high ?’”
As part of that value-focused approach , Kuster noted that Canyon Ranch is seriously investigating the idea of a membership model .“ What a lot of people say to us after a week is ,‘ I slept great . I ate great . I feel amazing . How the heck am I going to keep this up when I go home ?’” he said .“ We think [ a membership model ] is a way to keep folks in our ecosystem as they go home . It ’ s also a great acquisition tool for us to get people into what we ’ re all about .”
On the pricing front , Massage Heights CEO and President Susan Boresow explained that , though her company ’ s franchisees have , like many other spas , raised prices over the past year , the perception of spa services ’ value has actually led to more consistent investment on the part of their members .“ Our franchisees have raised prices , and we ’ re at the highest retention rate with our members ever . People are not leaving ,” she said .“ They need the therapeutic value … for what they ’ re dealing with in their lives , and we are absolutely providing that service to them . They ’ re willing to pay the price .”
The lack of price sensitivity among guests was echoed by each panelist , though Emlyn Brown cautioned that , when considering what ’ s next for spa , assuming that lack of sensitivity will persist may be a mistake .“ I think 2023 will be a backlash against some of the pricing that we ’ ve had this year ,” he said . At the same time , Brown acknowledged that guests are likely to remain committed to the wellness outcomes spas provide , which presents the industry with an opportunity to implement a membership model that could allow for more sustainable revenues , even as some consumers might eventually be turned off by price increases . Though consensus on where exactly the industry is headed can be challenging to find , Susan Boresow offered up a question that those across the industry must continue asking themselves , no matter what the future holds : “ How do we keep connecting with our guests and our members , our teams and everybody else in the system ?” The answer may not be the same for every spa , but asking the right questions is half the battle . n
JULY 2022 n PULSE 37