Health+and+Wellness.+Positioning+for+Key+Markets

Positioning Strategy for Key Markets

HEALTH AND WELLNESS

�Health & Wellness Positioning Strategy

Escape to a place where the wild Atlantic ocean meets a rugged beauty on the edge of Europe; an untamed landscape where nature’s abundance has the power to embrace and nourish you. Find clarity and feel connected to the land where a soft light gently descends. You’ll feel enlivened by spending time in the company of a warm and hospitable people whose healing inheritance will nurture and settle you.

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1. Market Context1.1 Health & Wellness Tourism DefinitionA health resort [spa] is a place where people engage in activities intended to improve or maintain their health. The concept of a health resort…describes a place and a product; it is a place that provides rest and recreation facilities for overnight guests. The product consists of goods and services aimed at the maintenance or improvement of a guest’s physical or mental health.”

The true meaning of the word spa is ’mineral waters known for the curative powers’. Today in European health resorts, water treatments are frequently administered usually under the supervision of a specifically trained spa doctor as part of a spa programme.

Health tourism and wellness tourism are very different products. A client with various medical conditions would travel to experience therapies that will help to make them well - or to improve their health. Whereas, a person who seeks a wellness travel experience, is generally healthy to start with, and seeks therapies to maintain his or her well being.

Ultimately, it is through professionally delivered health and wellness programmes that people learn to be happy in life, find and maintain a sense or attitude of well-being or find personal fulfilment, meaning and purpose in life. Combining the consumer’s quest for health and wellness with travel, leisure, and fun (products of the travel industry) is, simply stated, spa health and wellness tourism.

Health & Wellness Positioning Strategy

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1.2 Why do people visit Spas?People visit spas for a variety of reasons including pampering, relaxation, fitness, health and spirituality. Internal and external treatments are equally important to spa-goers. What unites all customer groups is the desire to feel better but it is how they seek to feel better that varies. The specific motivations of those who visit spas include:

A desire to feel better via pampering and indulgence. Outer beauty is a key draw for the majority of Irish spa-goers who assume that cosmetic treatments e.g. facials, manicures, will be available at all spa facilities;

A means of Escape – consumers generally feel better when removed from the normal day-to-day environment and circumstances. Many people visit spa facilities to relieve or reduce stress or simply to indulge their senses;

A desire to gain a Holistic approach to well-being – for those who are looking for serenity, understanding and self acceptance;

A desire for improved wellness, to feel better by changing one’s spirit or body – for those who want to discover how lifestyle choices can lead to optimal health;

Rehabilitation – for those who need to recover after an illness;

Expert advice on skin care and diet, products and techniques to use at home to recreate the spa experience;

A way to achieve fitness – for people who want to get in shape by attending fitness classes, or adapting a healthier lifestyle.

1.3 A Profile of Spa CustomersTourism Ireland has identified Sightseers and Culture Seekers as its ‘best prospect’ in each of the main target markets including Great Britain, North America, Europe and new markets. Secondary targets include ‘Outdoor Actives’, ‘Affinity Groups’, ‘MICE’ and ‘Luxury Lovers’.

In developing a brand proposition and positioning strategy for Ireland’s Health & Wellness sector, we have identified six discreet consumer segments.

Based on the unique attributes of each market and the targeting strategy adopted by Tourism Ireland it will be appropriate to target different health and wellness consumers in different markets. This has been reflected in the market strategies outlined later in this document.

Health & Wellness Positioning Strategy

�. Market Context

� Health & Wellness Positioning Strategy

Fun seekersFun seekers love to get away with the girls or guys. Taking a spa break is a secondary consideration to the enjoyment they derive from being with friends, whether that’s through playing a round of golf, enjoying a good meal or hitting the town for some night-life or shopping. Fun seekers are unlikely to be experts in spa therapies and treatments but view spa breaks as just another activity to enjoy on a fun filled, activity laden weekend with friends or significant others. The image of the destination as a fun filled get away with lots to do and plenty to see is of primary importance to fun seeking spa goers.


Occasional pamperersSometimes the pace of life gets too much – whether it’s the demands of family life, work life, commuting or a combination of all three. Taking time out for a spot of pampering is one way to escape daily hassles whilst also rewarding oneself for all the hard hours put in. Because they are worth it, the treatments enjoyed are luxurious – the fact that they look and feel great after is just another added bonus! The quality of treatments they receive is important but so are the surroundings in which they are enjoyed. Occasional pamperers are more likely to select a resort or destination whose reputation for excellence and pampering fits their requirements.

�. Market Context


RelaxersTo relax, sometimes all that’s needed is fifteen minutes alone, a tranquil walk through the park or to curling up reading a favourite book. Their primary need is to take time out – where they can be free of the pressures of everyday life. Visiting a spa allows relaxers to take time out, gives them a chance to reflect, to reconnect and to emerge with a renewed sense of purpose. The treatments enjoyed are important but taking time out is the necessity!


Serenity SeekersTo serenity seekers the health and wellness movement is a way of life and not simply an occasional break from an otherwise frantic lifestyle. Highly self aware, they are in touch with their physical, emotional and mental well being. They seek serenity, understanding and self-acceptance. Likely to practice meditation, yoga, tai chi and other contemplative exercises serenity seekers philosophy extends to all aspects of their lives. They are most likely to be attracted to resorts or destinations who espouse their values and who understand that health and wellness is a philosophy for living and not just an occasional add on.

�. Market Context


Beauty QueensSometimes characterised as ‘ladies who lunch’ or more recently ‘Ryder Cup wives’, health and wellness for Beauty Queens is all about looking good. Exfoliated, manicured, wrapped and waxed, they could grace the pages of any magazine cover. Looking good is a key part of who they are and when selecting a holiday destination abroad it’s essential they have access to the same comprehensive services they enjoy at home.


Help SeekersWhether wanting to look better physically, feel better mentally or change some aspect of their lives, Help Seekers are looking for change in their lives. Treatments they seek range from cosmetic surgery, help for the clinically obese or just advice on how to deal with health issues e.g. smoking or medical concerns. Selecting a destination is primarily driven by the reputation of the resort or clinic, although locations that have established a ‘centre of excellence’ such as Scottsdale in Arizona enjoy a halo effect for the location’s brand.

�. Market Context

�0 Health & Wellness Positioning Strategy

In order to understand how the sector can best meet the unique needs of each consumer segment, the following perceptual map of each segment’s need states has been developed.

��Health & Wellness Positioning Strategy

1.4 What Ireland has to offer the Health & Wellness visitorThe exponential growth in spas in Ireland over the last five years has been unmissable. Everywhere you look, from big cities to the most remote rural spot, there seems to be a spa opening. In �00� alone, over �0 facilities opened, offering different types of spa experiences. Much of this growth is represented in the hotel or resort spa sector, where the trend is for properties to add on a wellness or spa facility as an additional service to their clients.

The growth is not only in response to changing consumer expectations but is also playing a key role in educating Irish consumers with regard to spa experiences. Within a short period of time, Ireland’s health and wellness industry has grown from offering a few select, dedicated health farms and spas, to offering a significant choice to the consumer. These include:

Destination Spa or purpose built facility. It’s sole purpose is to offer a comprehensive, full service wellness spa experience for overnight or day guests;

Dedicated full service spa in a hotel or resort, which offers a dedicated and comprehensive full service wellness spa experience separate to their hotel business;

Other hotel spas housed in � - � star hotels with small but well appointed spas offering spa services and pampering packages;

Specialised retreats and health farms, which differ from a spa and offer specialised services including holistic treatments and experiences.

The following perceptual map has been developed to show Ireland’s product offers.

�. Market Context

�� Health & Wellness Positioning Strategy

1.4.1 Matching Ireland’s product to customer needsBased on the needs of identified consumer segments we have attempted to match Ireland’s existing spa categories to the needs of each group. The following is an indication of the product that may best match each consumer group. However, it is by no means exclusive.

Serenity Seekers are looking for a holistic experience, and are more likely to focus on the spa (rather than the hotel) as a destination. Their product of choice is the destination spa or health farm;

Help Seekers are looking for a cosmetic or life changing experience which they will find in a specialised retreat or destination spa;

Beauty Queens are looking for a superior quality pampering experience in a luxurious environment and are more likely to visit a destination, resort or dedicated hotel spa;

Relaxers want to get away from it all. They are likely to avail of other hotel facilities and activities as well as enjoying a pampering experience, and are more likely to do that in a resort or dedicated hotel spa;

Occasional Pamperers go away as a special treat and are looking for a luxurious environment. They are most likely to visit a resort or hotel spa;

Fun seekers are more concerned about the qualities of the actual destination and as such are more likely to visit a hotel or resort spa.

The proposed categorisation that will take place in �00� will provide a greater insight on the quality and quantity of spa product available and will be vital for future planning purposes.


1.5 Market TrendsA number of key market trends have been identified for the Health and Wellness sector:

Spa-goers are drawn to indigenous treatments and products, especially when travelling (e.g. Desert Sand-herb Rasoul Scrub in Dubai);

Evolving spa-goers desire spa experiences customised to their personal needs and desires;

An increased demand for unique products and treatments – leverage local places and indigenous traditions (e.g. Dead Sea black mud baths, seaweed baths, vinotheraphy or wine spas of France);

Differentiation can be achieved by reinforcing the local culture and customs at spas - each destination to reflect its location (e.g. innate grace delivering serenity in Thailand, a cultural adventure in Bhutan);

As urban centres become more congested, local residents will seek out opportunities for retreat and wellness within their own cities (e.g. the Mandarin Oriental in New York City is located on the ��th floor of the luxurious Time Warner centre, on Central Park and the Mandarin Oriental Hyde Park, London has world class shopping in Knightsbridge on its doorstep);

There is increased demand for integrated resorts and gated communities that offer a particular lifestyle combining location, activity and healthy living. These are rapidly developing in the USA like Scottsdale in Arizona and are also catching on in Asia;

Medical spas, medical tourism and rehabilitation at desirable destinations will play a big part in a new movement of spas (e.g. Hungary sits on one of the richest geothermal and medicinal water resources in the world and has a long history as the land of healing waters);

Specialised spas for specific populations such as men, teens and consumers seeking specific therapies will continue to grow (The Refinery in England and Nickel in France are examples of men-only spas);

Experts (such as Richard Dusseau of Spa Strategy) suggest that building a brand is increasingly important for both independent operators and large chains such as branded hotel companies given that spa users will base their decisions on the strength and reputation of the brand. Some hospitality companies can rely on the strength of their hotel brand to support their spa operations. The luxury-segment market leaders such as Mandarin Oriental, Four Seasons and Ritz-Carlton can distribute their spas internationally without creating an additional brand to support the spa operations. As consumers develop loyalty to specific spa brands it will become increasingly crucial for each brand to develop its signature. As a service-based business, it will be critical that consistency become the defining factor. While Ireland has seen the emergence of branded spas e.g. Absolute Spa, to date there is little evidence of spa brand loyalty developing in Ireland.

�. Market Context


2.0 Brand PropositionOver the last number of months, Fáilte Ireland, in conjunction with an Industry Advisory Group, has made significant progress on developing an over-arching positioning strategy for Ireland’s health and wellness sector.

2.1 Ireland’s Health & Wellness Brand Model The brand proposition is based on Tourism Brand Ireland’s (TBI) existing model and has been enhanced to take advantage of the growing health and wellness opportunity. Elements of TBI have been tailored to leverage the unique attributes that Ireland has to offer and to create a distinctive positioning for Ireland in the health and wellness sector. The proposition is reflective of the industry and brand offering. It is positioned to create a broader appeal to distinct health and wellness segments and will also provide a sharper focus for brand and marketing communication efforts.

The elements of TBI that will be accentuated when dealing with the health and wellness sector are highlighted in white in the figure below.

�. Brand Proposition


2.2 Positioning Territories / The road to ‘True Ireland’ In agreeing Ireland’s health and wellness positioning strategy a number of alternative propositions were considered including - Spiritual Ireland, Indulgent Ireland, Social Ireland and True Ireland each of which have been mapped out in the figure below.

Following evaluation against a number of agreed criteria ‘True Ireland’ was selected based on the proposition’s appeal and relevance, distinctiveness, credibility, indigenous and sustainability. Where appropriate, elements of the other territories may be ‘dialed up’ to give particular emphasis based on specific market or customer needs. A fuller articulation of ‘True Ireland’ can be found in the Health and Wellness Brand Booklet.


3.0 Ireland’s Health & Wellness Tourism Opportunity 3.1 Current PositionPeople are increasingly in tune with their personal health and wellness and are highly informed about what is required to lead a healthy life, both physically and mentally. Their willingness to travel in order to avail of the benefits offered by different destinations has led to significant growth in the sector.

Many factors are driving the health conscious consumer to seek wellness tourism experiences, including changing demographics, an increasing desire across cultures to live longer and live well and the seemingly insatiable appetite for new and different leisure experiences.

Overseas spa tourists generally have greater experience of spas and, therefore, greater expectations. This is particularly true of US and German tourists. Overseas tourists are attracted by the kind of experiences they cannot get elsewhere, or treatments that are particular to a certain country or place.

At the same time, the drive by the health and wellness and tourism industries to diversify, expand current product offerings and provide desirable new leisure experiences and treatments has fuelled growth in the sector. To date, the Irish wellness tourism market has been supply-side driven, not consumer driven.

In the UK and Ireland, indulgence is one of the main reasons people visit a spa. Research shows that there is an increased need for consumers to feel better. This desire is driven by a hectic commuter culture, stress-related health problems and a tiring pace of life. �0% of workers now travel over �0miles to work and � in � motorists spend �hrs+ in traffic. People are more tired and hassled than ever before with �0% of Irish mums working now versus ��% in �� and crèches opening at �am. As a result, our health is suffering. In the US, �0% of all problems brought to GP’s are stress-related (The American Academy of Family Physicians). While in Ireland stress is the second most common cause for sick leave over �� days (VHI). It is expected to be number � by �0�0 (WFMH). Thanks to better economic times, the Irish in particular also have more money now than ever before to spend on pampering.

3.2 Future OpportunityHealth and wellness tourism has several unique advantages including a lack of seasonality, independence from weather conditions, an average length of stay that is longer when compared with other tourism sectors and regional diversity.

Recent years has seen a veritable explosion in the quality and variety of health and wellness facilities in Ireland. The unique combination of a diverse and professional supplier base with Ireland’s unique destination attributes delivers a compelling proposition to consumers and positions Ireland as a leading spa and wellness destination.

As the Irish market becomes more sophisticated, Irish consumers will also become more demanding, and the demand for more sophisticated, high quality product and discreet spa experiences, isolated from other hotel activities will increase.

As the international market continues to mature, Ireland’s uniqueness will be vital to providing it with a compelling point of difference from other markets also trying to develop their wellness propositions and attract high spending visitors in this sector.The UK and domestic markets clearly represent the greatest immediate growth opportunity followed by the US and Germany. Potentially Scandinavian countries, Italy and France represent longer term opportunities. However, wellness tourist from these countries will be more demanding of the product they receive given that the sector is more mature in those countries.

�. Ireland’s Health & Wellness Tourism Opportunity


4.0 Target Market Profiles 4.1 Domestic MarketThere are approximately ��0,000 ‘wellness tourists’ in Ireland. Irish Spa goers have two main reasons for visiting spas, to pamper and indulge themselves and to escape. Indulgence is the entry point for most consumers, especially females. However, according to ISPA Trends ’0�, there is evidence that the more sequential services one experiences in a short period of time, the more likely they are to evolve into core attitudes and consistent behaviour’. The level of experience of Irish spa-goers varies from ‘committed’ (�� %) to ‘occasionals’ users (��%) to ‘dippers’ (��%) or those who infrequently visit a spa.

�0% of spa consumers in Ireland are Irish, and because they currently have less experience, their expectations of the spa experience are lower. Demand for more sophisticated products (including quality of service, expert staff and unique treatments), will increase as these consumers gain more experience. However, Irish consumers are quick to try new experiences and perceived value is very important, particularly if they are not sure what they’re paying for. Recommendations from friends are key in deciding on facilities and treatments. Given that Irish spa-goers are open to trying new experiences, spa owners should consider new ways of easing in spa goers, for example by offering trials and challenging and encouraging potential consumers to try new spa experiences. Spa trials tend to lead to evangelical converts!: e.g. ISPA reports ��% repeat visit within ��mths.


4.1.1 Target SegmentsBased on this profile the target segments that have been selected for marketing investment purposes are as follows:

Primary Target Markets

Pamperers

Relaxers

Fun Seekers

Secondary Target Markets

Beauty Queens

Our primary efforts will be focused on educating the primary target segments regarding the product that is available in Ireland and supporting the burgeoning ‘spa-culture’ that has developed in our primary target markets.

Beauty Queens should only be targeted for premium campaigns, probably focussing on spas that offer a minimum ‘dedicated spa facility’ standard.

4.1.2 Brand Positioning for Primary Target SegmentsBased on the needs of targeted domestic health and wellness customer segments, a slight nuance in the positioning of health and wellness brand activity should occur. This is reflected in a subtle shift towards an outer directed experience as illustrated in the positioning map below.

�. Target Market Profiles


4.1.3 Brand FocusThis positioning will require an increased focus on the ‘enriching’ aspect of the brand – delivering a ‘positive and rewarding experience’ for the consumer. The spotlight will be on ‘being made to feel special’ as well as ‘chill out/unwind’ and the opportunity ‘to get away from it all’ – resulting in the consumer emerging rejuvenated and de-stressed.

4.2 Great Britain MarketThe Great Britain market currently presents the single biggest overseas opportunity for the Irish wellness sector. An increasing proportion of British holidaymakers are travelling to Ireland independently. This correlates to the increasing utilisation of the Internet, which is assisting holidaymakers in both choosing and planning holidays to the island. Word of mouth remains the key source when choosing Ireland for a holiday.

The size of the British market to the island of Ireland.Great Britain is the largest market to the island of Ireland, accounting for over ��% of total visits. In �00� the island welcomed, for the first time, over �.� million visitors, an increase of �% on the previous year, with a further increase showing in the �00� preliminary figures. The value of these visits generated record revenue levels in excess of €�.� billion; a growth of �%, which was faster than visitor growth.

Table 2 British market - numbers & revenue

Holiday and Conference / Incentive and EFL � Euro = 0.�� Sterling

�000 �00� �00� �00� �00� �00�0�/0�

% CHANGE

Total Visits (000’s) �,�� ,�0� �,�� ,�� ,�� ,��0 + �%

Holiday Visits (000’s)

�,��0 �,�� ,��0 �,�� ,�� ,�� - �%

Promotable Visitors (000’s)*

�,�� ,�� ,�� ,�� ,�� ,�� - �%

Revenue (€M) �,�� ,�� ,�� ,�� ,�� ,�� + �%

Revenue (£M) ��0 �,00� �,0�� ,�00 �,0�� ,�0� + �%


According to Mintel and McCann Erickson TGI profiling, at least �.� million UK people would be interested in a Spa holiday abroad. International wellness tourists profiled suggests the target is predominantly ��-��yr female, urban, married and working. Value for money will be a key driver.

In �00�, there were low numbers of outbound spa holidays sold but operators suggest this number will grow at ��-��% p.a. (Mintel). Ireland would be competing against long-haul exotic spa locations e.g. Far East, Indian ocean and also Eastern Europe where there is great value for money in cheap flights and hotel costs.

The latent market in the UK is significant with ‘escape’ a key wellness driver for the segment. There is also a strong ‘beauty’ driver that is currently being serviced by the day-spa market in the UK but which offers potential for the Irish market.

4.2.1 Target Segments for Primary Target MarketsIn its marketing plans for �00�, Tourism Ireland stated that it will concentrate on positioning the island of Ireland as a year-round, quality holiday destination in Great Britain. It identified Sightseers and Culture Seekers as the primary target segment.

Based on the market profile and Tourism Ireland’s plans, the target segments that have been selected for marketing investment purposes for the Health and Wellness product include:


Fun Seekers

Pamperers

Relaxers


Beauty Queens

The focus will be on promoting Ireland as a Health and Wellness destination, particularly suited to short-breaks, by emphasising the range and quality of product available.

Similar to Ireland, Beauty Queens should only be targeted for premium campaigns, probably focussing on spas that offer a minimum ‘dedicated spa facility’ standard.


4.2.2 Brand Positioning for Primary Target SegmentsBased on the needs of targeted UK health and wellness customer segments, a stronger nuance in the positioning of health and wellness brand activity should occur in this market. This is reflected in a more overt shift towards an outer directed experience as illustrated in the positioning map below.

4.2.3 Brand FocusThis positioning will require an increased focus on the warm and friendly characteristics of the brand. The spotlight will be on ‘being made to feel special’ as well as ‘enjoy the freedom’ of a place called Ireland. The brand will position Ireland as the ideal location to take a short-break – to discover new places, new things and new people. The perfect destination for those who want to ‘get away from it’ all, relax and enjoy top class facilities on their doorstep. While in Ireland on a spa break, visitors may also wish to engage in other activities such as shopping, walking, equestrian or golf.



4.3 US MarketThe United States is the �nd largest tourism generating country for the island of Ireland and accounts for ��% of total visits. Visitors from the United States account for ��% of total revenue to the island of Ireland. The US visitor spends �0% more than the average visitor per trip and in �00� they spent €�� per trip.

The size of the United States market to the island of Ireland.The number of visitors from the United States remained static in �00� after strong growth of +�% in �00�, with preliminary figures for �00� showing a further increase of ��%. The value of visits from the United States market is substantial, but in �00� the revenue generated decreased by -�%. This is strongly connected to the poor exchange rate in �00� which saw the value of the dollar drop by �% to €0.��. Holiday visitors decreased by -�% in �00� – this was after strong growth of +�% in �00�.

Holiday and Conference/Incentive and EFL � Euro + 0.�� Sterling

Table 3 US market - numbers & revenue

�000 �00� �00� �00� �00� �00�0�/0�

% CHANGE

Total Visits (000’s) �,00� �� 0 0%

Holiday Visits (000’s)

�� - �%


�� 0� �� - �%

Revenue (€M) �� 0 �� 00 - �%

Revenue (£M) �� 0 �� - �%


‘Today travellers are experienced, more quality conscious, independent and harder to please’ (Mintel ’0�)

In the US, wellness holidays are sanitised by a motivation for ‘self-improvement’ and/or self-betterment’. Consumers want activity-based, results orientated programmes. They want to actively do things to bring about a state of wellness e.g. early morning walks, yoga etc. They want rapid transformation to move from one state (tired, stressed) to a better state of wellbeing (renewal, rejuvenation).

It is estimated that � in �0 wellness holidays are decided by females and the level of expected service from these customers is very high.

According to the �00� ISPA Spa Industry Study and Consumer Trends Report ‘Consumers experiment more when at spas on vacation and expect a broader array of “authentic,” indigenous as well as health and wellness oriented services.’ Ireland will need to compete with the increasing sophistication of US offerings that are, after all, on this markets door-step.

Table 4 Preferred destinations for US and Canadian spa goers for future spa vacations

Destinations United States Spa-Goer (%) Canadian Spa-Goer (%)

United States �� % �0 %

Mexico/Caribbean �� % �� %

Europe �� % �� %

Canada �� % �� %

Asia �0 % �� %

Other � % � %

Not Planning a Spa Vacation � % � %

* Hartman Group �00�



4.3.1 Target SegmentsWith the assistance of industry partners on both sides of the Atlantic, Tourism Ireland has reviewed the future potential of North America and developed an action plan for growth. In its marketing plans for �00�, Tourism Ireland identified Sightseers and Culture Seekers as the best prospects to target.

Based on the market profile and Tourism Ireland’s premium destination marketing strategy, the target segments that have been selected for marketing investment purposes for the Health and Wellness product are as follows:


Serenity Seekers

Relaxers


Beauty Queens

Given the emphasis on self improvement and the sophisticated nature of the spa industry in the USA, it is likely that spa goers will be more expert than their counterparts in Europe. They are likely to come to Ireland for a variety of reasons, which may include golf and culture, and will combine their spa experience with these other activities. Therefore, the focus will be on promoting a spa experience as an additional activity to complement their stay in Ireland.

4.3.2 Brand Positioning for Primary Target SegmentsBased on the needs of the targeted US health and wellness customer segments, a shift in nuance in the positioning of health and wellness brand activity should occur. This is reflected in a shift towards appealing to a more ‘expert’ and sophisticated

audience than has been the case in other markets and is illustrated in the positioning map below.



4.3.3 Brand FocusThis positioning will require an increased focus on the inspiring, natural and enriching aspects of the brand. The spotlight will be on ‘being made to feel special’ as well as ‘feeling connected to an historic culture’. The brand will position Ireland as the ideal location to discover new places, new things and new people. The ideal place to enjoy an invigorating or relaxing spa experience and in an environment that is also conducive to activities such as walking, fishing, golf, culture and heritage.


4.4 German MarketThe size of the German market to the island of Ireland.The island of Ireland welcomed, for the first time, over four hundred thousand German visitors in �00�, an increase of �0�,000 visitors (+��%) over �00�. The value of these visits grew by ��% to the highest recorded levels of €�� / £�� million, while holiday trips increased by a phenomenal ��% over the previous year.

Preliminary figures for �00� show a further increase of �% visitor numbers from Germany.

The emerging trend in German wellness is to return to more intuitive, natural ‘remedies’ which is good news for Ireland. The concept of wellness is very well established in Germany where, since the ��00s, ‘taking the water’ has been popular resulting in spa use that is part of everyday German culture. For many, spa use is believed to be a right, not a privilege e.g. up until the mid �0’s, workers had the right to visit a spa resort paid for by the Government.

In ��, Germany, along with many other European countries, reformed their social health laws. This resulted in an initial decrease in customers to spa resorts. The German National Tourist Board established ‘Wellness in Germany’ as a theme for its international marketing strategies. This has resulted in rapid growth of wellness tourism and Germany now has the highest share of the European spa market and is the premier market for wellness tourism.

* Holiday and Conference / Incentive and EFL � Euro = 0.�� Sterling

Table 5 German market - numbers & revenue

�000 �00� �00� �00� �00� �00�0�/0�

% CHANGE

Total Visits (000’s) �� 0� �0� �� + ��%

Holiday Visits (000’s) �� + ��%


��0 �� 0� �00 �� 0 + �0%

Revenue (€M) ��0 �0� ��0 �� + ��%

Revenue (£M) �� + ��%



There are �.� million German spa users who holiday abroad and significant numbers of potential wellness tourists are willing to holiday outside the country. International travel for wellness holidays is largely to neighbouring countries. Germany borders the no. � and no.� markets (Austria and France). It is also very close to the emerging Eastern European destinations e.g. Hungary and Bulgaria.

Destinations such as Thailand and Indonesia have been successful in attracting long-haul tourists to their spas and wellness centres’. And significantly, ��% of potential wellness tourists rate weather/climate as the most important factor for choosing a vacation destination. This will pose a challenge for Ireland.

Sources - Mintel Global Report, August 2004 and ‘Defining the Irish Wellness Tourism Opportunity’, research carried out by McCann Erickson and Amarach on behalf of Fáilte Ireland

4.4.1 Target SegmentsIn its marketing plans for �00�, Tourism Ireland stated that it will continue to invest and pursue increased market share in Germany. It identified Sightseers and Culture Seekers as the best prospects to target.

Based on the market profile and Tourism Ireland’s plans, the target segments that have been selected for marketing investment purposes for the Health and Wellness product are as follows:


Serenity Seekers

Relaxers


Pamperers

German visitors are likely to come to Ireland for a variety of reasons, which may include sightseeing, outdoor activities and culture experiences. Combined with the fact that the German health and wellness sector is mature and German wellness tourists mainly travel to neighbouring countries, the focus will be on promoting a spa experience as an additional activity to complement their stay in Ireland. Serenity seekers are more likely to take the opportunity to enjoy an indigenous or holistic experience (e.g. eco-wellness or seaweed baths).


4.4.2 Brand Positioning for Primary Target SegmentsBased on the needs of targeted German health and wellness customer segments, a shift in nuance in the positioning of health and wellness brand activity should occur. This is reflected in a shift towards appealing to a more ‘expert’ and inner

directed audience seeking a more holistic spa experience. This shift in emphasis is illustrated in the positioning map below.

4.4.3 Brand FocusThis positioning will require an increased focus on the inspiring and natural aspects of the brand. The spotlight will be on ‘feeling connected to an historic culture’, ‘regaining a balance of life’ and ‘getting away from it all’. Similar to the US market, we will package spa and wellness with other products and activities such as walking, fishing, golf, culture and heritage.

4.5 Secondary Geographic MarketsWhile our primary focus will continue to be on the core markets of the UK, US and Germany, a number of potential new markets - Italy, France and Scandinavia - have been identified for investment. Initial market intelligence suggests potential interest in Irish wellness products and markets will be targeted to develop potential visitor numbers.


5.0 Strategic Priorities And Recommendations for the FutureThe Health and wellness sector in Ireland is a relatively new and developing market. However, in the past two years, growth in the sector has been significant and this is set to continue and evolve in the future. To date the market has been supply driven, but consumers’ awareness is increasing, creating a need for the industry to focus on both the consumer and worldwide industry trends and adapt a consumer-led approach. The Sector is taking the necessary steps to position Ireland as a major spa and wellness destination, a leader that can rival its European neighbours.

Fáilte Ireland is committed to supporting the Industry by prioritising the following recommendations/initiatives:

5.1 CategorisationIncreasing consumer awareness of health and wellness issues, coupled with the growing range of facilities and spa experiences available to today’s consumer, have presented an interesting challenge for both the industry and the consumer. Following extensive research, Fáilte Ireland has responded by working with an industry working group and a categorisation expert to develop a categorisation system for the Health and Wellness sector.

When the categories have been agreed, all facilities will be inspected and assigned a category. Following that, promotional material, will be produced to showcase Ireland’s portfolio of Spa and Wellness offerings by category.

With the categorisation system in place, the Industry will be in a position, for the first time, to assess the product currently available and identify obvious gaps. It will essentially become a product audit.

The system will enable existing and prospective customers to better navigate the variety of health and wellness offerings available, make informed choices and find the products that best match their needs. It will assist operators in identifying potential new products based on consumer need-states. It will benefit the Industry by providing definitions and setting boundaries including minimum standards for each category. And it will also drive standards by providing potential new operators with standards to which they must adhere.

5.2 Marketing and CommunicationsIn order to position Ireland as a world-class Health and Wellness destination and to create awareness of the expanding and superior product offering, Fáilte Ireland are committed to:

Attracting a greater number of international spa and wellness tourists particularly from the UK and other short break markets;

Encouraging international tourists already planning to visit Ireland to use Ireland’s spa and wellness facilities during their stay – promoting higher spend and yield;

Driving demand for wellness breaks in the domestic market.

�. Strategic Priorities And Recommendations for the Future


We plan to do this by:

Adapting the positioning recommendations as detailed in section �, to attract spa and wellness tourists in our primary markets;

Incorporating Ireland’s spa and wellness experience in all destination marketing, thereby making it an integral part of the Irish holiday experience;

Bundling the spa and wellness experience with other complementary products to offer a complete holiday experience. Customers will be offered different ‘combined’ products depending on the market and target audience.

These combined offers will include: A luxury proposition US and Italian markets combining spa and golf or spa and food; An ‘outdoor actives’ proposition focussed on the German, US and Scandinavian markets combining wellness holidays and walking. Short breaks focussed on the UK and other short break markets combining spa and shopping or spa and sightseeing.

5.3 Measurement and TrackingAlthough there is some international data available (e.g. from ISPA, Mintel), there is no measurement system in place in Ireland and official figures relating to Health and Wellness Tourism do not currently exist. This makes it impossible to assess the value and on-going growth of the sector. On an international level, different countries define the product in different ways and there is a lack of conformity in how data is collected, making it very difficult to compare market information.During �00�, plans will be put in place to improve measurement and collect more robust data at a number of levels. Systems will be put in place to measure usage and propensity to usage, both in this market and other markets. This will enable us to assess the size and value for each of the primary source markets. In addition, Fáilte Ireland will collaborate with national and international industry groups/agencies (e.g. NSAI, Visit Britain) to move towards standardised measurement. Once the baseline has been established Fáilte Ireland will be in a better position to set future growth targets.

5.4 Promoting sustainable developmentGiven that the Irish Health and Wellness sector is emerging and will continue to evolve in the future, it will be necessary to identify international trends and changing consumer needs in order to position Ireland as a world-class Spa and Wellness destination. This will be achieved through on-going research and performance monitoring using a number of channels, and will include a benchmark study to measure Ireland’s competitive position against other wellness destinations.

Fáilte Ireland is committed to allocating long-term investment to improve and evolve the current product offering. In particular, it will focus on the development of indigenous products and experiences which are unique to Ireland.

�. Strategic Priorities And Recommendations for the Future


5.5 Developing PeopleAs a relatively new Industry sector, the pool of trained personnel is limited, particularly at management level. We will work with the industry to develop training programmes specifically designed to assist spa mangers. We will also identify official qualifications for spa therapists ensuring a consistent level of service across the sector.

Relevant ContactsFailte IrelandHealth and Wellness Marketing Officer – Imelda Rey, Tel: 0� �� 00, Email: imelda.rey@fai lteireland. ieHead of Product Marketing – John Rafferty, Tel: 0� �� 00, Email: john.rafferty@fai lteireland. ie

Regional ContactsFailte Ireland South East Tel: 0�� Failte Ireland Midlands East Tel: 0�� Failte Ireland North West Tel: 0�� 0�Failte Ireland West Tel: 0�� 00Failte Ireland South West Tel: 0�� 00Shannon Development Tel: 0�� Dublin Tourism Tel: 0� �0� ��


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