The “Thermal Spa” in North America takes on many names. Some know them as Nordic spas or Scandinavian spas, geothermal spas and hot spring spas, as well as bathhouse-style spas. The real defining factor is whether the spa has a complete thermal cycle.
The thermal cycle entails heating the body either by sauna, steam or hot pool, then cooling it very rapidly with either a plunge pool, Nordic waterfall or even a roll in the snow if the climate supports this option—although snow rooms are starting to pop up. After the cooldown, there is a period of relaxation, and then the process is repeated over the course of the day.
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The “Thermal Spa” in North America takes on many names. Some know them as Nordic spas or Scandinavian spas, geothermal spas and hot spring spas, as well as bathhouse-style spas. The real defining factor is whether the spa has a complete thermal cycle.
The thermal cycle entails heating the body either by sauna, steam or hot pool, then cooling it very rapidly with either a plunge pool, Nordic waterfall or even a roll in the snow if the climate supports this option—although snow rooms are starting to pop up. After the cooldown, there is a period of relaxation, and then the process is repeated over the course of the day.
Related: Sky Lagoon Unveils 7-Step Bathing Ritual
The thermal spa sector is the highest ROI form of spa. They are extremely capital intensive, and the order in which you plan can save you money. My first and best advice to startups is to follow four easy steps:
- Research and discovery
- Secure your site
- Raise the money
- Design and build
Location Considerations
Where do you want to build? What’s the zoning? Will it permit your use? For example, open space zoning may allow recreational use, and a spa falls under that. The natural setting with the pools and landscaping in most cases will be a permitted use. An open space land purchase versus buying commercial zoned property could save millions in property acquisition. How many acres do you require for buildings, pavilions, parking, pools, patios, landscaping and storage?
Those are big questions that can only be answered once a feasibility study has been conducted and we know what to expect in the way of attendance. Will you have accommodations? This changes it from a day spa to a destination spa. It definitely changes the footprint and will often change the zoning requirements. In this case the “open space” loophole won’t work.
Working with the right consultant will make this process accurate, less painful and less likely to incur financial missteps.
There are many things to look at when deciding on your location. Are there competitors? What else is there to do in the community? What are some B2B opportunities? How much acreage is available, and is there flat accessible land for parking?
Your immediate reaction to the property is important. Are there great vistas, are there nearby natural water sources? Is there highway noise? Will your spa be easy to find, and is there a great traffic count to benefit from your entrance signage?
Calculating Attendance
There are strict formulas that will determine the annual and daily attendance. The obvious is your immediate population, but how far will someone travel and still consider it a day spa visit? What is the tourist to visitor ratio for thermal spas?
A good thermal spa consultant knows the conversion ratios and can calculate the main drivers into an assertive number. They should be able to suggest an appropriate design team, various building consultants, constructors or CM’s.
It's important to calculate what a high traffic day will look like—weekend traffic versus weekday traffic, for instance—and how it will affect your space capacities and code requirements. Your back of house (BOH) requirements, circulation, massage and treatment rooms, all factors to consider.
Do a checklist for yourself that will encompass the experience you want your guests to have.
What Services Should You Offer?
In areas with fierce competition, you'll need to add more innovative and interesting offerings, the newest and trendiest new therapy ideas and/or over the top architecture and equipment. But in most cases, offerings included in your basic entrance fee are value enough for the thermal cycle commitment of the spa. If you add a saltwater suspension pool or Banya, you may choose to call it a signature service and have that as an upgrade with added fees.
Related: 3 Wellness Treatments Using Mineral Spring Water
One way to look at extra therapies is the same way amusement parks look at new rides. The new ride creates excitement to go visit the park again. A significant addition of a wellness pavilion could add plenty of excitement in future years, thus resulting in return visits.
The majority of your clients are going to attend your spa because of the experience, not for over-the-top design. They want to experience the thermal circuit, relax, socialize, enjoy a date night and rejuvenate. These days, a "social wellness" experience is in demand, so if this is on your list, be sure to plan for a bar area, patio, wine cellar and/or enticing dining area(s).
Taste should be stimulated at a spa, too, and to do food and beverage correctly is like adding another distinct business to the property—another layer on the proverbial onion. You'll need to decide how big this area should be. Find out how many clients at any one time will want to sit down and dine. How many will want a charcuterie and wine after the spa experience, versus a sit down meal?
Some people are early morning people and love the sounds of morning birds and watching the sunrise. You may have a yoga or meditation ritual for these clients. Mid-day guests tend to be tourist-heavy and often spend more on food. Later in the day, visits transitions more to social wellness or date-night outings and the overall atmosphere is different again.
Space Logistics
In addition to the thermal circuit and potential food and beverage space requirements, you must also calculate how many people will want massages and other spa services.
These separate yet related offerings are a huge contribution to overall square footage. You need treatment rooms, storage space, circulation, reception, waiting area, soiled laundry area and possibly a refreshment area.Staff will need space for changing, breaks or to simply decompress.
Will there be an outdoor patio? Will it have an area that can automatically be enclosed during bad weather and, if not, will you have enough indoor space for those patrons?
Meanwhile, your high traffic day attendance will determine how big your locker rooms will have to be. What is the attendance to available lockers ratio? You will need overflow lockers, but how many? The locker room is part of the spa experience and it has to be nice.
There are also engineering issues to think about. A good consultant will know what to look out for, such as heated walkways to prevent icing and slips/falls, how to best enclose the patio to poor weather, and even your waste solutions or heat recovery options.
Staff Needs
A lot of experts in a lot of fields will be required to run your business successfully. An experienced thermal spa consultant will help you create that detailed list and scale your staff summary to your annual attendance.
As previously mentioned, your employees need space to eat, change, maybe shower and socialize. It’s very important to keep your staff happy because that will translate into the guest experience and less employee turnover. These spaces need to be applied into your SF analysis.
Thermal spas are capital intensive. Phase one is the most important phase, and you must start with the right team to guide you. Getting it right at the very beginning will ensure maximum efficiency on your spa, which will turn into higher returns.
Antony von Palleske is an independent thermal spa consultant working on spas around North America. He is currently launching his own brand of resort spas focusing in Central Ontario and BC. Previously, he was a partner of Thermea Whitby.
