How Spas Manage Stress

Owners Step Up Services and Plan for Drop in Luxury Spending

So you want to escape from the economic malaise and set your mind adrift with a 50- minute deep facial or a 50-minute deep massage for $95 each.

Sounds like an unaffordable indulgence these days, doesn't it? The $11 billion U.S. spa industry, which has enjoyed several years of growth, is expected to get whacked by the same slowdown that is hitting sports tickets, upscale boutiques and private-jet travel.

But Elizabeth Snowdon is betting that the money-minded of Washington will see her Nusta Spa in downtown Washington as downright cheap compared with the $5,000 mink coat for a Christmas gift or the $2,000 New Year's trip to New York with dinner at the 21 Club and a Broadway show.

It's all relative, she figures:

"Here is something nice that I can do for myself. I really may not take that weekend away or go on vacation, but I can spend half a day at the spa. That's going to be my mini-vacation and makes me feel good, and make me feel like I had a break."

Whether sentiment like that is reality or smart marketing, business owners such as Snowdon are trying to remain upbeat this holiday season in the face of the worst economic downturn in decades. They really don't have any choice. It's hustle or watch your business go elsewhere.

The robust economy of the past decade spurred a big increase in the number of spas, according to the International Spa Association. As of June 2007, the most recent numbers available, there were 18,100 spas in the United States, compared with 14,600 the year before. Competition has been heavy, with some spa owners vying for the best masseuses because of the loyal clients they bring with them.

Eyal Uzana of Eyma Salon & Spa in Bethesda said he has seen some pullback in his day spa traffic in recent months, although the hair salon part of his business is doing fine.

"If you've got gray hair, you've got gray hair," Uzana said, referring to the clients who need coloring every five weeks or so. "We have had the spa for four years, and there is a lot of competition. And I feel it with the economy. People are waiting a little longer for a facial or are using cream instead of coming in for a visit."

Carl Boger, associate dean of academics at the Hilton College of Hotel and Restaurant Management at the University of Houston, estimates that 5 to 7 percent of all spas nationwide won't make it through the coming year. Those that do are likely to see customers skip the high-cost options like stone massages in favor of basic treatments such as facials and massages. "The occasional users are going to cut back," he predicted.

But that doesn't mean there's not money to be made for those who have done their homework.

Snowdon, who went to Stanford for undergrad and got an MBA from Duke, provides an interesting glimpse into the ever-gentle world of wellness. Snowdon's approach to her customers reminds me of a business case study that I read about Southwest Airlines. Southwest's competition wasn't other airlines. The Texas-based airline's competition was the car. How far would a Texan have to drive before a dirt-cheap hop on a commuter plane became more economical -- and convenient? Southwest doesn't see itself as an airline. It sees itself as a transportation company.