Pulse Legacy Archive June 2012 | Page 50

A Quick Guide on How to Incorporate the Onsen/Sento Business Model l Make the most of what you have: Two good examples of businesses that know how to maximize profits from their mineral springs are the Evian Ermitage in France and the Pepper Spring Retreat and Spa in Australia. The Pepper Spring Resort has functioned as a hot spring resort for many years until recently, they saw the value in bottling their water for profit as well. Conversely, Evian, famous for their natural spring water, is currently working on utilizing their natural resources to create a mineral spring resort. l The onsen business model not only helped put the resort and spa out of the mold from their competitors since they are able to market the medicinal benefits of mineral hot springs but has also diversified their revenue stream. In 2011 alone, they accommodated over 100,000 visitors in which 75 percent were day spa guests and 25 percent were overnight guests. recent occupancy and see if you can offer a membership program that coincides with your guest flow. Day visitors may be just the added boost to the revenue stream your business needs. Consider discounting early morning and late night usage when you know occupancy is lower. l ABOUT THE WRITER: Melita Issa has traveled to and lived in Japan on and off since she was 16 years old. She graduated from the University of North Carolina at Chapel Hill’s esteemed Journalism and Mass Communication School, and later received a Master’s in Interior Design from Savannah College of Art and Design. Melita’s recent book, American Onsen: Adapting the Japanese Hot Spring Bathhouse Spa for American Users was published in 2011. She resides in Atlanta, Georgia with her husband and daughter. For more, visit her website: melitaissa.com. 48 PULSE n June 2012 Unique Location: Maximize your unique location and tie it in with a theme, whether it’s historic or nature. One thing almost all the examples had in common was their ability to optimize nature’s views to create a unique spa experience for their guests (e.g. sento bathing with a mountain view). Conclusion Whether using mineral springs or solely heated municipal water, it is important to understand that the onsen and sento business models should not be viewed dependent from the spa business. These two worlds (onsen/sento and spa) can be bridged in order to create a unique customer experience and spa brand. Onsen and sento spas’ target markets appeal to both men and women. Generally, women make up about 60 percent of clientele with spa treatments, but at Kabuki Springs & Spa, Nelsen says, men make up 55 percent of their bathhouse guests. This offers businesses a new way to attract both sexes. To further add marketability, there is a need to educate spagoers about the benefits of mineral hot springs and water-based treatments in general. This is a critical component for them to fully embrace this wellness practice. n Membership programs and day access: Take a look at l Make it a value package: The Japanese ryoken owners look to get their money upfront by charging per person for room, meals and spa services. There may be some additional services that can be included in this, but knowing exactly how much money they will make before their customer walks through the door is one reason the ryoken business in Japan has survived for hundreds of years. Group or couple packaging is another marketing tool that allows owners to give a deal without having to lower the value of the brand. l Experiential travel: Adopting the experiential style is not limited to activities like yoga, hiking trails and locally inspired cuisines, but can be extended to how you present the thermal experience to your client. Kohler Waters Spa and its sento-style thermal suite is a good example of a spa that has designed a service that treats almost every part of the body in a self-guided 30- to 60-minute aquatic experience. Glen Ivy Hot Springs Spa is another property that has both an outdoor mineral hot springs bath and indoor bathhouse for a complete water-based therapy and experience.