Spa Business issue 4 2011 - TourismInsights

PHOTO: SHUTTERSTOCK.COM/ ANDREY_POPOV
Prices for primary services
have held steady, which
reflects the moderate uplift in
consumer demand
try has kept up with the moderate
rate of expansion, reversing recessionary
declines in revenues, visits
and staffing numbers.
In 2010, total spa industry revenues
rose by an estimated 4.3 per
cent, or 2.6 per cent after adjusting
for inflation, bringing the total
to us$12.8bn (€9.4bn, £8.2bn), up
us$0.5bn (€0.37bn, £0.32bn) from
2009’s us$12.3bn (€9.2bn £8bn). The
average revenue was up by 8 per cent,
equal to us$642,000 (€470,900,
£410,300). With average spend per
visit remaining unchanged at us$85
(€62, £54), the main factor driving
the increase was a 5 per cent rise in
total visits, from 143 million by year
end 2009 to 150 million by year end
2010. Though not back to the pre-recession
peak of 160 million recorded
in 2008, this still marks an important
step towards recovery.
Further encouraging signs include
total square footage holding steady
and an estimated 2 per cent rise in
employment. As of May 2011, a total
of 338,600 people were working in the US
spa industry, with the number of full-time
employees up by 8 per cent compared to
2010. This expansion in full-time staffing has
been the driver of employment increase and
indicates that there is a measure of confidence
as spas bounce back.
However, the recovery has not been
enough to prevent a further fall in the
number of spa locations (down 3 per cent),
which dipped for the second year running.
This is partly due to the fact that the rate of
new spa openings fell sharply in 2010. Of the
spas surveyed, only 2.5 per cent had opened
in 2010, compared to an opening rate of 6-8
In 2010, total industry revenues rose by 4.3 per cent, or 2.6 per
cent after adjusting for infl ation, bringing the total to US$12.8bn...
49 per cent of spas reported improvements in profi ts
per cent in previous years. Also, an estimated
5.8 per cent of spas closed in 2010 – a figure
that is likely to be elevated due to the lingering
effects of the recession. The fall in the
number of spa locations may also represent
a consolidation in the industry following
rapid expansion between 1998-2008.
By the end of 2010, the total number of
locations stood at 19,900. The composition
of the industry remains broadly unchanged.
Day spas are still in the majority (78 per
cent), followed by resort/hotel spas accounting
for 9 per cent of the total; medical spas
(8.7 per cent); club spas (2.8 per cent); destination
spas offering seven-day wellness
programmes (0.4 per cent); and mineral
spring spas (0.3 per cent).
Overall, the spa industry recovery reflects
the national picture and similar experiences
in comparable leisure industry sectors such as
health clubs, theme parks and cruise lines.
STRATEGIES FOR GROWTH
National economic developments have been
the single most important factor shaping the
pace of growth in the spa industry, through
the recession and into the recovery phase. In
response, spas have adopted a range of strategies
to manage the effects of the downturn
and position themselves for future growth.
PHOTO: SHUTTERSTOCK.COM/PHIL DATE
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