A Quick Guide on How to Incorporate
the Onsen/Sento Business Model
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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.
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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.
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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
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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
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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.
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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.