What Should Spas Offer in the Face of Increased Competition -
Big Deals or Quality?
by SpaQuality LLC

If you read Avery Johnson’s 3-4-06 Wall Street Journal article, Competition Forces Spas to Offer Big Deals, you are familiar with the statistics he sites that indicate a spa industry slowdown:

and what some spas are doing to try to keep their share of the market:

Offering bribes in hopes of earning guests’ loyalty is one method. However, data from other industries indicates that once you begin such tampering with cost, it is generally impossible to recover. It continues to directly impact profit even after the market condition is corrected. When the bribes and bargains stop, the Guest starts looking elsewhere. A more viable long-term strategy is to focus on quality and delivering what the Guest values. By providing good value, impeccable and personalized customer service, clean and comfortable facilities, and reliable and effective treatments Guests remain loyal.

Having and using a vigorous quality management system, such as that described by The International Standards of SpaExcellenceSM, is a far more effective way to earn Guest loyalty than frequent-buyer-style loyalty programs, deep discounts, or other temporary perks. When Guests return, the Spa can be assured that the Guest will experience the quality that the Spa has worked hard to deliver. Offer Guests consistent quality and value, and they will go out of their way to pay you for the trip.

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