Pass the Avocado Toast: Updating the Spa Experience for a New Generation

What do millennials want out of a luxury wellness experience? Apparently, avocado toast. That’s just one of the findings lifestyle publication Well+Good discovered after surveying 4,600 of its readers.

californiaavocado.com

Unlike days of yore, when the only way to discover wellness concepts was by going to iconic high-end destination spas like Canyon Ranch and Miraval, today, wellness is accessible nearly everywhere.

You can take a high-intensity interval training class or sip on a matcha latte anywhere from Boise, Idaho to Baltimore, Maryland. There’s the entire urban landscape extending to second-tier and tertiary cities supporting what were once fringe wellness practices and pabulums confined to the likes of Los Angeles or New York.

Alexia Brue and Melisse Gelula co-founded Well+Good in 2010. They presented the findings of the company’s Wellness Travel Survey at the Global Wellness Summit in October.

The ubiquity of wellness is a big part of the reason, says Brue, that millennials aren’t impressed with the iconic spa brands, many of which have traditionally appealed to clientele getting the wellness light switched on for the first time.

But another reason, she says, is simply that this generation doesn’t know these brands. “Starting in the late 1990s through the early aughts,” says Brue, “the iconic spa has not been a part of the cultural currency.”  In pre-Internet days, seekers would discover these retreats thanks to fawning articles and splashy advertising in glossy travel magazines.  But this generation gets its information online, and as Brue notes, “These brands haven’t been part of the social media conversation.”  That’s part of the reason the millennial wellness getaway mindset has traveled elsewhere.

In a game of “would you rather,” the Well+Good survey discovered that a slim majority of the respondents would opt to go to an iconic spa (55 percent) over a guru-led retreat (40 percent). However, Gelula calls the results “shocking,” given that they were expecting an 80/20 differential in favor of the old-school spa.

According to the Well+Good co-founders, the spa attendees in the audience at The Global Wellness Summit were surprised, too. “The spas don’t even realize that their biggest competition isn’t other spas,” says Brue. “Fitness and lifestyle instructors leading retreats are the competition,” says Brue. Indeed, it’s increasingly common for self-branded wellness gurus with large social media followings to organize their own wellness retreats to exotic destinations around the world.

Cambodia is one of the exotic destinations popular for guru-led wellness retreats.

For spa resort executives who might be comforting themselves by thinking it’s all about the price tag, they are wrong, according to Gelula. “They are convincing themselves that if they are not attracting millennials, it’s because millennials aren’t taking luxury trips.” But that’s not true. Millennials do have disposable income (although not necessarily as much free time. According to to the survey, younger wellness seekers are more likely to take a three-day getaway rather than the traditional one-week spa stay). When it comes to retreats versus spas, she says, “it’s important to point out that we aren’t seeing much of a price point difference. Retreat leaders often charge between $700 and $1000 a day.

Brue also believes that some of the iconic spas, instead of trying to appeal to millennials today, are just waiting until they start getting aches and pains. The problem with that approach, says Brue, is that “millennials don’t have a ‘fix me now’ mentality when they go to a spa.” Because they are already incorporating wellness in their everyday life, when they go on a wellness getaway, they want an elevated experience that builds on their daily practices, but doesn’t replicate them.

Gelula says, “Spas are simply are out of the loop in terms of what travelers expect from a wellness retreat.” So, what do today’s wellness warriors want? The number one priority, according to the survey, is food. Ninety-nine percent of the respondents said the quality of the food was a key factor in their decision-making process.

Ninety-seven percent of the survey respondents wanted cultural offerings to be part of the package. That doesn’t necessarily mean experiencing a Lomi Lomi massage in Hawaii, but rather going to a destination where the surroundings themselves provide a broadening experience. That’s part of the reason guru-led retreats are starting to get a leg up. They can roam from place to place from year to year, plunking down in up-and-coming destinations in order to incorporate a greater cultural component into the programming mix.

The Well+Good survey also found the nature experiences (96 percent) and high quality fitness offerings (94 percent) were important, with spa services (93 percent) rounding out the top five.

So, how can the iconic spa bring offerings up to date? Gelula recommends starting with the menu. “Focus on food,” she says. “Provide cool wellness food offerings. After all, consumers are used to eating avocado toast, avocado smoothies and cauliflower rice at home…or seeing them on Instagram.” In addition to menu updates, Brue says spas need to hire higher-quality fitness instructors, and to add more personalization to the spa programming.

All in all, the co-founders of Well+Good suggest spas need to change now or risk becoming dinosaurs. As Gelula notes, “The value proposition has to keep pace with this sophisticated group of travelers. One thing we confirmed with the survey results: Spa experiences for millennials should focus on deepening already-existing wellness practices.”

This story originally appeared in the Skift New Luxury Newsletter.

The Wharf Turns Washington into a Waterfront City

This story originally appeared in the Skift New Luxury Newsletter, for which I am the luxury correspondent.

cntraveler.com

Washington, D.C. is sporting a new tourism destination that is allowing travelers to get off the National Mall and a world away from politics. But The Wharf doesn’t only serve to transport visitors (including locals) to new reaches of the city. It also may become a role model for 21st century tourism developments. 

The Wharf, which opened last month, is turning Washington, D.C. as a waterfront city. Yes, a river runs through it, but in the past, most of D.C.’s waterfront areas were undeveloped and somewhat seedy. But a new $2.5 billion mixed-use development including hotels, entertainment venues, restaurants, retail, residential and office space is what many  in the city’s political, tourism and business communities are calling a game-changer.

Phase 1 opened on October 12. Together with Phase 2, to be finished by the end of 2021, The Wharf will comprise 24 acres of land, 50 acres of water, marinas, piers and waterfront parks, scores of restaurant and retail outlets, and at least four hotels (the InterContinental, Hyatt House and Canopy by Hilton are open as part of Phase 1).

The Wharf is being developed by Hoffman-Madison Waterfront, a partnership of PN Hoffman and Madison Marquette. PN Hoffman is one of Washington’s premier developers of urban residential and mixed-use neighborhood transformation projects, while Madison Marquette is a private investment and operating company focused on mixed-use developments throughout the U.S. The land on which the project stands is owned by the District of Columbia, but leased by Hoffman-Madison Waterfront under a 99-year lease.

The mile-long area along the Potomac River is transforming a previously-neglected D.C. neighborhood into a tourism hub. But just as importantly, it may serve as a model for other mixed-used developments going forward.

Photo courtesy MadisonMarquette.com 

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Shawn Seaman is the aptly-named project director who has been there since the beginning of the development. A principal and executive vice president at PN Hoffman, Seaman notes that in its request for proposal, the city emphasized that the redevelopment spur job creation, with 50 percent of all jobs set aside for DC residents, and provide affordable housing. Improving the quality of the environment was another key demand in the RFP, which was issued and awarded in 2006.

The approach of the master planners at Hoffman-Madison Waterfront was to understand how the water side of the equation was going to work before erecting buildings, according to Seaman. “We looked at certain world cities that do a good job of being connected to the water,” he says, noting that Nordic ports like Copenhagen, Denmark and the Aker Brygge district in Oslo, Norway were key inspirations. The planners also drew inspiration from Cape Town, South Africa, Vancouver’s Granville Island and Pike Place Market in Seattle.

Photo courtesy of washington.org

Given the generic and sterile nature of so many mixed-used developments, Monty Hoffman, founder and chief executive officer of PN Hoffman, aimed for something completely different. “We wanted a waterfront that is not a typical ‘lifestyle’ center. In fact, The Wharf is a bit messy,” he says. “Messiness” was achieved by having different architects designing the buildings (albeit under a master architectural plan). As a result, instead of a cookie-cutter look, The Wharf sports a mix of shapes, building materials and unique design. Then there’s woonerf, a Dutch concept of using the street as a shared social space for pedestrians, cyclists, dog-walkers and others. Seaman points out that having a mix of users descending upon the same space for different purposes creates a dynamic environment “resulting in a street theater that lacks when everything is perfectly polished.”

GETTING AROUND

While there are ample parking spaces, public transportation is a major component of the development. The facility is within easy walking access of the DC Metro, although there is also a free shuttle bus that goes to one of the nearby stations (and to the National Mall). There are bike rental facilities and 1,750 bike parking spaces. There are marinas which can house everything from houseboats to multi-million dollar yachts. There is a free water jitney that takes outdoor types from the Recreation Pier across to East Potomac Park, where they can play golf or tennis, go for a run, or ride a bike. 

But the highlight of The Wharf’s transportation system is a regional water taxi run by Entertainment Cruises that connects the Potomac waterfront from Old Town Alexandria to Georgetown (and, by next spring, National Harbor). The high-speed 150-passenger boats, inspired by European ferries, are GPS-tracked, so awaiting passengers can know exactly arrival times. The water taxis are designed not only to accommodate tourists, but also locals commuting downtown from the neighborhoods it serves (an annual pass costs $175).

KEEPING IT REAL

Everything in travel these days is about keeping it local and authentic. And The Wharf is both. The first port of entry is DC’s iconic Municipal Fish Market, which has continuously been in operation since 1805. The re-imagined market includes long-time tenants, along with a restoration of the historic oyster shed, a new distillery and a market hall inspired by San Francisco’s Ferry Building. The fish market is open now; the rest of the work will be done by next summer.

The bulk of restaurants and retail at The Wharf have local roots. Chefs who are already established in the community—like Top Chef contestants Mike Isabellaand Kwame Onwuachi – have opened eateries, and local entertainment impresario Seth Hurwitz runs The Anthem, a 6,000-seat concert venue designed by David Rockwell. Retail follows the same pattern, with nary a national chain store to be found. The highlight of the retail tenant list is Politics and Prose, a DC institution that opened its second bookstore here

According to Eleanor Holmes Norton, D.C.’s non-voting representative in Congress,  “We’ve added a new destination to the District of Columbia. We have transformed a neighborhood, giving tourists new areas to visit This is so important because we are a tourist economy.” Amer Hammour, chairman of Madison Marquette, says, “All around us the whole area is changing. There will be new museums nearby—the International Spy Museum (which is moving from another location) and the Museum of the Bible. Plus, a new soccer stadium is being built. The Wharf made it all possible.”

But it’s not just about tourism. The Wharf will provide 6000 permanent jobs and a million-dollar job workforce training program. Up to 30 percent of the apartment units will be set aside for affordable housing. And, according to Seaman, the city will garner an estimated $50 million in annual tax revenue. Most importantly he says, “We built a real neighborhood, which makes The Wharf a more interesting and authentic place to be because real people live and work there.”

The Key Demographic That Travel Marketers Are Forgetting About

This story originally appeared on Skift.com, for which I am the luxury correspondent.
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Despite often being ignored by marketers, who tend to focus their attention on the millennials, older baby boomers and the so-called matures, mid-lifers (ages 45 to 59) form a vast and relatively affluent legion, representing 16 percent of the world's population.

Global Mid-Lifers at a Crossroads: Lifestyles and Market Impact, a new report from Euromonitor International, examines the lifestyles and spending habits of members of this group, whose relatively high incomes make them an important market for luxury goods and premium products and services of all types, including, of course, travel.

This Mid-lifer subset comprises baby boomers born in the late 1950s and early 1960s. Younger baby boomers were the first to coin the term, "40 is the new 30." Different from their generational cohorts born right after World War II, later boomers embrace the idea of staying active and continually evolving, no matter their age. Even though they may be in their 50s, many are embarking on new careers or new relationships.

According to the report, "Mid-lifers do not want to be ignored by businesses, but nor do they want to be singled out, stereotyped or treated in a patronizing manner." That said, marketers cannot take a one-size-fits-all approach with this group, given the fact that some may be empty nesters, while others are raising younger children; or that some are married and others singles. That's why the report notes, "Mid-lifers should be targeted in terms of life stage as much as age." For example "for those harried parents squeezed between bringing up children and looking after aging parents, convenience and price will be key factors in purchasing decisions."

What are the advantages are marketing to Mid-lifers? According to the report, overall, Mid-lifers have the highest spending power among all age groups. Many are at the peak of their careers, while others may have received inheritances or made money on real estate, or a combination of wealth thereof. This makes the group a logical target market for luxury and indulgence items.

The report also notes that wellness and relationships are the key to Mid-lifer's sense of happiness. They are seeking a better work-life balance, and are choosing to slow down, change direction or fulfill lifelong dreams.

That may be one reason why divorce is becoming more common at this stage in life. Another is because divorce has lost its stigma in more traditional countries, such as Italy. The country's 2015 divorzio veloce (quick divorce) procedure reportedly received 50,000 request within two months of being introduced.

Euromonitor cites a study by UK-based QualitySolicitors finding that "over- 45s who get divorced report feeling "relieved", "excited" and "more confident. Some 17 percent of respondents said hitting middle age highlighted what they were missing in life, with divorce one of the first steps to nding happiness for 40 percent. That's a huge opportunity to travel marketers, with an appeal to divorced spouses feeling the need for freedom and adventure at this particular juncture.

Another opportunity for travel marketers is this group's intense emphasis on health and fitness. "Mid-lifers are focusing on improving their health and appearance through diet, exercise and lifestyle. Energetic pursuits have become popular among this age group the world over."

According to Tim Simons, the founder of Build Coaching, an Australian business consulting company, who is quoted in the report, "Fitness is the new mid-life crisis. The old-school, traditional mid-life crisis has been about buying things and feeding the ego, and while fitness is also ego-related, this time it's a physical thing, and a transformational thing."

Growth in this segment isn't slowing down anytime soon. The report notes, "Mid-life consumers will continue to represent a huge and lucrative market, with population numbers expected to expand by 10 percent globally." Growth will stem largely from the Middle East and Africa (17 percent) and the Asia-Pacific and Latin America regions (both 11 percent), although incomes will continue to be much higher in North America and Europe.

Separating China from the pack, Euromonitor International reports the massive country accounts for 26 percent of the world's 45-59-year-olds. Incomes of those between the ages of 45-49 and 55-59 increased by 49 percent in constant value terms between 2010 and 2015. Given that China has the biggest and the fastest growing Mid-lifer demographic, one with a strong penchant for purchasing luxury, this is an extremely important market for the travel industry to pursue with alacrity.

More Travel Gadgets on Great Day Washington

Greetings, dear readers. Apologies for being AWOL, but this new luxury travel gig for Skift is keeping me going 24/7.  But I continue to squeeze in time for my Travel Tuesday gadget guru segments on Great Day Washington. Here's the most recent, which features items like A/Stand, AirHook, Face Cradle and the HydraPak collapsible water bottle. Take a look.

Five Luxury Travel Trends You Need to Know About

The story originally appeared in the Skift New Luxury Newsletter, for which I am the chief correspondent.

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Changes in the world are happening at warp speed, and the expectations of luxury consumers are following suit, according to The Future of Luxury, recently published by Sabre Corporation.

Palm Trees in Martinique

The report notes that smart brands will make a move toward more individualized and transformative forms of luxury in order to appeal to the new consumer ethos of wanting to broaden personal horizons while finding purpose and connection.

Sabre identifies five core trends that luxury purveyors should be paying close attention to — trends that tap into the desires to be unique and to access luxury on one’s own terms.

The five core luxury trends are:

1. The Quintessential Self: “The endless search to realize the idealized version of themselves that they carry around in their head.” Consumers are looking for brands to deliver goods to “help them fulfill their dreams to be better human beings.”

A prime example of a product appealing to this trend is Le Monastere des Augustines, about which we previously wrote. A bit more extravagant is Maverick Helicopter’s Yoga in the Desert. For “just” $3,500, yogis are transported by helicopter from Las Vegas to Valley of Fire State Park for a 75-minute class.

2. No-Frills Chic: Growing numbers of experienced luxury travelers consider themselves post-status, according to the report. They say they are not drawn in by brand prestige, but rather by quality and purpose.

Many luxury travelers “are looking for more subtle indulgence, choosing low-key brands, products and services over showy opulence.” That said, as the report notes, even the display of shunning brands is a status play. It’s just an alternative way of expressing it.

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Examples of “no-frills” include the 2016 introduction of a new Louis Vuitton luggage line with the LV logo obscured. Another example is Airstream, whose camper trailers range in price up to $140,000.

3. Premium Redeemed: “Thanks to an ever-greater awareness of the impact of their actions, many travelers feel increasingly guilty about the negative impact their consumption has on the environment, society and their health.” So, there is a rising demand for luxury products that make the world a better place. The report notes that businesses should be looking at how to make products sustainable and/or how the brand can do social good.

For example, in Nicaragua’s countryside, the not-for-profit American Nicaraguan Foundation runs a luxury resort helping local communities benefit from tourism. Nekupe Sporting Resort and Retreat is situated on land where slash-and-burn agriculture was previously practiced. According to Sabre’s report, “The aim of the hotel is to educate visitors about its goals of improving local employment, sustainable farming and environmental stewardship.”

Nekupe Sporting Resort and Retreat
sfgate.com

4. Extravagance on Demand: “Smart phone-fueled on-demand services have rewired the expectations of customers.” Luxury brands seeking to get a leg up must realize that their consumers expect the benefits of instant access and “will push their on-demand mindset to new highs, and into entirely new domains of consumerism.”

Recharge taps into this trend. The app allows consumers to reserve luxury hotel rooms by the minute. It debuted in New York this spring. The cost of a New York City luxury hotel by the minute: 66 cents to $3. (Doing the math, that’s $40 to $180 per hour).

Blade, an on-demand helicopter service, partnered with Delta Airlines to reduce travel time from JFK Airport to Manhattan. Upon arrival at JFK, an elite service team whisks guests and their luggage to an awaiting chopper, which takes them to Manhattan in ten minutes.

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5. Customized: “Many luxury travelers want to construct experiences that align with their unique interests, needs and values.” The report notes expectations around personalization are constantly being heightened online, where it appears everything can be tailored to individual preferences and interests.

Nothing’s more personal than your own DNA. Last year, London-based Travel Unwrapped launched DNA Unwrapped, a series of travel itineraries inspired by the traveler’s genetic code.

For more stories on luxury travel trends, please subscribe to the Skift New Luxury Newsletter.