where healing happens
THERMAL / NORDIC / SCANDINAVIAN / WATER SPA
The description comes in many ways, but it really means the same thing. It’s a process where the spa goers enjoy different water temperatures, treatments and therapries specifically designed to help heal the mind and body.
The benefits to the spa goer include cleansing the body, stimulating blood circulation, the release of endorphins and a general sense of wellbeing.
The Thermal Spa business is becoming a force in the North American Spa market. It’s growing at a faster pace than any other form of spa in North America. In fact, in 2014 there only 201 Thermal Spas in North America compared to 302 in 2018.
Why isn’t there more of them in North America?
The answer to that is simple:
- There is a lack of knowledge out there in research in terms of development and operations to reference.
- The cost is often in the millions to build.
Where to start?
What You Want to Know
- How big your audience will be
- Predict your annual attendance
- Develop a site referenced to code to accommodate this audience
- Know what obligatory amenities need to be implemented
- Know the size of the spa amenities so that we don’t over build and waste capital
- Know conversion rates of guests to spa treatments to calculate spa services section
- Know what your space will need in regards to back office and storage etc.
- Identify all revenue streams to maximize income, this includes your spa services menu, food, boutique along with any additional DIY therapies which may be additional charges.
- Calculate your staffing needs
- Look at all revenue and operation costs and create predicted income.
How We Can Help
These spas can cost a lot, often into the millions. Because of the lack of data, it’s hard to create a document to support your project. We can do that.
The process we take not only creates your site and business model but it also educates along the way so that you are extremely knowledgeable in this business by the time you execute your plan.
When projects cost this much money you can’t afford to experiment or build on passion over proven ROI. It’s our job to direct you to achieve maximum profits from the beginning and ensure that your ATR’s are in balance with your competitors, if you have any, and that your SUR is high because your spa menu has been creating in such a way that you are perpetually busy.
Without a doubt the planning stage is the most important and it is minimal investment to enable you to save money and maximize profits.
SPAFORMATION PROJECT PROCESS
PHASE 1: Should we do this?
- Establish the size of your market
- Population and tourism audits along with household income and disposable income.
- Ancillary Markets based on site specific conditions
- Establish Site specific requirements
- Complete Budget Analysis to determine project viability and profitability
PHASE 2: You are a go! What needs doing now
- Work with design team to finalize specific elements identified in Phase 1
- Menu of services and offerings specified
- Operational startup costs
- Construction Costs
- Detailed Human Resource plan
- Marketing and Sales plans
PHASE 3: Do it! Time to execute the plan
- Assist with everything that needs to happen to the project until it comes to life
- Business Development Strategy and implementation
- Product Selection
- Human Resource – leadership hiring, team training and management
- Marketing Executio
- Procurement of equipment, supplies