Briefer spa treatments become popular in tough economy

Call it a luxury, call it a necessity. Either way the spa industry continues to expand and see an increase in revenue as clients seek ways to relax and momentarily escape.

"Spas are not about luxury -- they're about recharging your battery, taking time to renew and learning how to take care of yourself," Lynne McNees, president of the International Spa Association, has said. "The key is to take the information you learn at the spa, and incorporate it into your daily routine at home."

As have other industries, spas have been suffering in the recession, and in an effort to move away from the image of being a luxury, some are adapting their marketing strategies to keep spa goers coming back.

Stephanie Hudgens, owner of In the Buff Day Spa, said it's about positioning during tough times.

"We are trying to position ourselves to our clients as something they can't do without," she said. "It's really about how you treat people when they walk through the door."

Day spas comprise 79 percent of spas in the United States, with an overall annual revenue growth rate of 17.8 percent, according to statistics from the International Spa Association. In 2008, there were 21,300 spas in the U.S., an 18.8 percent change from 2007 when there were just under 18,000 spas. Even with the growth, ISPA reports that per spa level revenue has experienced a slight decline.

But that statistic and an unsteady economy didn't stop Rodney Thornton from opening Royal Treatment Day Spa and Salon in April, one of several spas that have opened in Chattanooga in the last two years.

"There were a lot of skeptics out there last year who said I wasn't going to last two months," he said.

"I felt like Chattanooga needed a nice place to go to where women could get just about everything done and get them at a better price, especially in this economy," he said. "You should be able to go to someplace nice without spending half your rent money."

The spa trade group reports that 46 percent of spas reported an increase in the number of shorter treatments (30 minutes or less) booked as opposed to longer, costlier services. Area spas said that offering customers specials, despite a decline in demand for longer treatments, helps to keep their businesses profitable.

Specials and marketing aside, the spa industry's hold on customers may be more than just dollars and cents -- it's possibly part psychology.

Dr. Christopher Cunningham, UC Foundation assistant professor and graduate faculty member in the department of psychology at the University of Tennessee at Chattanooga, said for many consumers cost benefit analysis is a factor.

"People are already making tradeoffs, so the question is about keeping some tradeoffs, turning in others," said Dr. Cunningham, adding that some luxuries carry more weight than others, which makes the cost paid worth the benefits received.

Genia Church, owner of Epiphany Salon and Day Spa, said that the instant gratification of day spa visits helps boost self-esteem -- and that's what keeps customers coming back.

SPAS ACROSS AMERICA* 1 in 4 Americans has been to a spa* 32 million are active spa goers* $12.8 billion in revenue was generated by the industry in 2008* 303,700 people were employed in the spa industry as of June 2008.Source: International Spa Association

"There are so many people that during this time have a lot of different stressors, so when they come here they can escape and you are able to make them feel a lot better about themselves."

Sheila Ullenberg, owner of two Champion Cleaners locations in Chattanooga and a client at Epiphany, said she has cut back to getting her nails done once a month to accommodate her bi-monthly facial and massage.

"It's a perk and reward to yourself," she said. "I don't necessarily feel like it's a luxury all the time. I think it's a necessity to help you feel refreshed."

However, Mrs. Ullenberg said that even when the economy recovers, she still plans on keeping her wallet tight.

"I think everyone has learned their lesson -- it has been a wake-up call."

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