Spa-rkling in the time of inflation

 

Anshul Dhamija & Swati Anand | TNN

 

Bangalore: With inflation at an all time high at 12% and consumers cautious on their wallets, there is a business that’s unruffled by it all — spas and salons.
   A visit to the spa to relax and destress seems to have now become a necessity rather than an aspiration or indulgence. Spa outlets at leading star hotels as well as standalone saloons show no sign of any inflationary pressure. In fact, business has just continued to grow more than two-fold with an average daily spend of Rs 4,000 per person.
   Hotel Grand Ashok’s spa Rejuve, that has been rated amongst the world’s top ten spas by Conde Nast Traveler, has reported a 100% increase in its business over the same period last year.
   “Last year we used to do a monthly business of Rs 7 lakh. This has grown to Rs 18 lakh per month,” said Harinder Singh, GM of Grand Ashok. She says that while the room occupancy has dipped by around 7% with rising airfares and peaking inflation, the spa business continues to see high growth.
   The spa center at The Leela too reported an 18% growth over the same period last year. The minimum bill here is around Rs 5,000.“On an average, a person spends close to Rs 5,000 every month at a spa-salon. Inflation may force a person to cut that dinner or lunch at a five star hotel or clip that extra outing to a cafe, but he/she wouldn’t skip a pedicure at the salon,” says an industry expert. With greater awareness of grooming today, there is much more that a professional comes to a salon for every month than a few years ago. A facial, for instance, is no longer a rare annual indulgence, but a regular monthly necessity. “A spa-salon offers services that are very close to each customer and has a close impact on their body. This requires an expert and products that the customer relies on. So no one will down trade a facial to a cheaper salon to save Rs 100 or Rs 200. This business is highly loyalty driven and it’s difficult for inflation to make a dent,” says Dharmendra Manwani, CEO of Jean-Claude Biguine India.
   Rising stress levels too play a role. “The kind of people we cater to realise that for their stressful lifestyles, a visit to a spa is the best antidote and therefore, something they’re not willing to compromise on. However, over the past few months, since there has been a dip in occupancy, our hotel spas have been affected. But in our stand alone spas, there has been no change at all,” says Jesper Houghaard, MD of Serena Spas.