Betting On Indian Tourism’s Latest Spa-cialty

Jyoti Koul- New Delhi

According to a KSA Technopak survey, the lifestyle spend of Indians today is estimated at a whopping Rs 8,000 crore a year (eight lakh Indian households with an annual discretionary spending of Rs one lakh each). The upper crust urban Indian spends more than the normal average and is affluent and well travelled. Therefore, there is definitely a huge market potential for lifestyle products like spas, which are not only a niche product but also one of India's fastest growing tourism segments. Spas actually originated in India but were adopted by the West and hence it is similar to the chicken tikka story.

India's Globalisation Flake

The mushrooming of spas in India is not really an instance of the percolation of globalisation or about keeping pace with international trends simply because India has been a pioneer and is emerging as the world leader by offering countless wellness options. The contribution of spas in bringing India on the global tourism map is immense. India is the pioneer but it lacked the marketing approach, packaging and promotion. And now that India has got its act together, it is the rest of the world that has to keep pace with India's flourishing spa business. According to Ashit Sud, managing director, Mayar Health Resorts Ltd and Amatrra Spa in Delhi, "Till now, in India, exotic destination spas attracted the upper crust urban Indian, who lavishly indulged on an occasional holiday to break-off from his normal routine and rejuvenate. From occasional and restricted usage, spas are now emerging as a part of daily lifestyles of the upwardly mobile urban Indian, besides foreigners in the country."

Not Just A VAcation Option

As the interest of the consumer is growing in the theme-based travel, wellness is the name of the game for it has always been a silent constituent in the art of holidaying. However, with the advent of the spa, vacation options have not only increased but also attained a new meaning. No wonder, spa as a concept is catching up fast on the holiday-horizon. The increasing trend of life-style diseases has led to its popularity, resultantly, spa destinations or resorts have registered a growth in the country. Amongst the most popular ones are Oberoi Spa by Banyan Tree at the Wildflower Hall in Shimla, Ananda Spa Resort in Rishikesh; Golden Palms Spa and Resorts and Angsana Spa in Bangalore. Pampering the senses and uplifting the diminished spirits, the Oberoi Spa by Banyan Tree at the Wildflower Hall in Shimla is a destination spa offering holistic treatments based on western and Asian therapies to relax, rejuvenate and inspire. The Oberoi spa caters to the body, mind and soul, with tranquil views through lush green forests to nourish oneself.

AnyTime...AnyWhere

A spa is not just about physical well being, it is about the holistic wellness anytime anywhere and that is the reason hotels are turning to day spas.

Gone are the days when spas were limited to five-star hotels and elite or the high end users. Today even a budget hotel includes a spa as the necessary evil. Recently, Country Inns and Suites by Carlson added a spa to their property at Katra in Jammu and Kashmir. Realising the need and the demand the property despite being a budget hotel, had to add the spa to cater to high end consumers that visit the shrine of Vaishno Devi. According to Sanjeev Pahwa, vice president, Country Development and Management Services (P) Ltd. (a joint venture between Country Inns and Suites by Carlson and Chanakya Hotels Ltd) "We felt it necessary to introduce a spa at Katra even though it is a budget hotel. We are considered to be the most elite and luxurious hotel in that belt. So it was on demand and was an urgent need to add the facility to the market."

Business Economics

Spas are becoming a hot product for the lean season. Through spas India can now prolong its limited tourist season and convert its lean season into a peak season as most of the tourists prefer spa treatments in the summer months.” It is surprising but true that foreigners prefer spa holidays from May to September and it is a positive indicator for the Indian tourism industry," says B Venkatesh, manager, sales and marketing, Devigarh Resort.

The spa treatments come with a hefty price tag, and the proportion of business derived from this segment, is about 12 to 15 per cent and growing. Devigarh offers a package for six nights and seven days for US$ 2800.

While tour operators are calling it a business diversification and hotels are happy calling it a value addition to the guest as well as to the business, it is a demand-based product. As Pahwa puts it, "Initially we started with the foot massages but then requests started pouring in for more therapies and treatments and that is when we thought of including a spa."

Realising the potential of the segment Devigarh Resort in Rajasthan opened a spa about three years back while catering to its high end customers especially German clients. It has turned Devigarh into a destination. According to Venkatesh," There is tremendous potential for spa tourism in India and it is growing fast, especially in states like Kerala and now Rajasthan. The spa business in Rajasthan has picked up in the last two years. We started Devigrah as a resort but we realised how Udaipur was gradually turning into a leisure and spa destination and we followed suit. By adding a spa (by Sansha), Devigarh is a complete leisure destination. And at a leisure destination, the customer wants the best of everything and we are servicing them."

Interesting Incentive

Apart from leisure tourists, spa holidays are fast catching up with the corporate segment. Spa holidays not only feature in their motivational programmes but are also becoming popular incentives. "Spa holidays are becoming a rage. However, the latest trend is that the corporate sector is considering spa holidays as an apt incentive for their employees or workers. It works for both the company and the worker, while the worker enjoys his holiday and comes back rejuvenated, they deliver better and thus contribute to the growth of the company. While the company saves on the medical bill, the worker feels obliged. So keeping such a scenario in mind, I foresee tremendous growth in this segment," informs Arun Kundu, manager operations, Discover India Incentives and Affairs. Spas therefore not only act as centers for rejuvenation but also as ego boosters.

Spa Segmentation

Traditionally spas are classified into two categories, destination spas and city spas. However, specialty spas belong to both the categories and remain an elite's cup of tea.

Masses are gradually getting the taste as the options are increasing. That said, there is still lot of segmentation in terms of affordability like specialty spas, flexible spas and cheap spas. However, Pahwa says, "Today there is nothing like a luxury or budget segment, as the market is opening up and people get the taste of everything. It is the demand and supply equation. However, luxury hotels and resorts operate spas on their terms and that is what is known as a specialty spa. The package for a day is around Rs 15,000.”

In order to cash in from this segment, market maturity is very important. The market has to get structured to tap the potential properly. Mayar Health Resorts proposes to chart this market potential with structured development plans, based on the recognition of market potential. "At present, the market potential is being addressed haphazardly and this is evident in the conversion of every small beauty salon within the city as a spa. This clearly denotes the demand for a spa experience as a part of daily routines," says Sud.