15 years in the medical spa

business from the perspective

of Czech companyMartin Plachy

Vice President of the Czech Spa Association

Director, Chairman of Board, ROYAL SPA, Kur&Spa Hotels

ROYAL SPA, KUR & SPA HOTELS

Spa Hotel ROYAL MARIÁNSKÉ LÁZNĚ

Spa Hotel MIRAMARE LUHAČOVICE

Spa VILA VALAŠKA LUHAČOVICE

SULPHUROUS SPAOSTROŽSKÁ NOVÁ VES

Spa Hotel ANTOANETA LUHAČOVICE

THERMAL SPA VELKÉ LOSINY

Wellness Hotel DIANAVELKÉ LOSINY

ROYAL SPA is a private chain of medical spa and wellness hotels located

in four famous spa resorts in the Czech Republic with a total capacity of

almost 1.000 beds

Basic figures of ROYAL SPA

• More than 30 thousand guests coming

yearly for a spa stay with at least one

procedure a day

• Average length of stay – 8 days

• 15 % are foreign guests

• 50 % of total overnights are made by the

clients of Czech health insurance

companies

Main products of ROYAL SPA

• Complex spa treatment for clients of

health insurance companies (treatment,

accommodation, full board) – min. 21 days

• Curative packages – min. 2 weeks

• Wellness, relaxation, preventive packages

– 1 week

• Various weekend packages with treatment

Spas and external influances

• Medical spas and the state

• Origin of the clients

• Product demand

Medical spas and the state

• Beginning of the 90th – total privatization of Czech spa resorts

• Public health system recognizes spa treatment – 2 % of the total spending

• Last five years – health insurance companies reduce slowly the spending

• 2011 – government want to reduce spending on spa by half

Medical spas and the state

• Czech Spas expect to lose about 70

thousand clients out of 108 thousand

coming through health insurance

companies

• 70 thousand clients of health insurance

companies generates about 1,5 mil.

overnights in Czech medical spas facilities

Perspective of further

development

closing of spa facilities

strong competition fight to get

existing spa clients

Origin of the clients

• Czech Republic »123 thousand clients through

health insurance companies

»111 thousand – self payers (In 2000 only 31 thousand)

• Foreign clients»143 thousand

• Dramatic loss of German clients

• Increase of new clients from Russia, Israel, Middle East, Slovak Republic

Perspective of further

development

growing competition in spa

industry

intensive marketing, growing cost to attract customer

Product demand

• 15 years ago - demand on traditional

complex treatment

• 7-5 years ago – demand on wellness

• Last two years – comeback of classical

cure, good medical care, rehabilitation

Perspective of further

development

People care more and more

about their health

Further concentration on good

cure and rehabilitation together

with good hotel services

Our challanges

Our challanges - Internet

• Internet opens the space

• Enables to reach new customer

• Unlimited variation of presentation

• Immediate confrontation with competition

• Enormous pressure on the price

• Customer choose by price

Our challanges - quality

• Make quality

• Develop the product on the fundamentals

of traditional spa cure - ESPA CREDO

Our challanges - quality

• Promote quality

Our challanges - quality

• Sell quality

Thank you for your attention