Airport spa takes off

The largest operator of airport spas in the United States, XPresSpa, plans to double its market presence in the next nine months and is in negotiations to purchase two of its competitors.

Currently under construction are one full-service spa at Philadelphia International Airport; two spas plus a spa kiosk at Raleigh-Durham International Airport; and one full-service spa each at John F. Kennedy International and LaGuardia airports, both in New York City.

In addition to these and the five sites it currently operates, XpresSpa has signed leases for four new locations set to open in 2006 and is in negotiations to purchase two unspecified competitors.

Unlike some other spas, which operate inside and/or outside of airports, operate only one or two locations, or provide a limited number of services, XpresSpa follows a large-scale model with a singular focus on airports.

“Our model is not a local spa operator that jumps into an airport location,” explained Moreton Binn, chief executive officer. “Our model is based upon developing a brand, and a consistent level of service at multiple outlets in multiple airports.”

The average footprint of an XpresSpa is 1,000-1,300 square feet. Binn reports annual revenues of $1.2 million and a monthly client load of 2,000-2,300 people per storefront.

The spas' service menu includes table and chair massage, esthetician services, body treatments, nail treatments and product sales. Binn said he could not operate his spa format in a 400 square-foot store, because an airport would prefer to rent that space to a Starbucks or McDonald’s, which could ensure reliable sales.

Because of its scale, its successful earnings thus far, deep pockets for investment, and marketing arrangements with the airlines, XpresSpa is able to rent premium spaces and satisfy airport requirements, according to Binn.

“When you have financial credibility, they will make space for you,” he said.

Binn added that XpresSpa will test a smaller, kiosk-style format in Raleigh-Durham as an extension of its facilities there. The kiosk will offer an abbreviated list of services, but will share labor, management and product ordering with the full-service spas.

XpresSpa currently operates two locations at John F. Kennedy International, one at San Francisco International, and two at Pittsburgh International. The latter two were purchased from the now-defunct airport spa operator Polished.

— Craig Faucher