As a result of the downturn, 33 per cent of operators reduced staff hours; and for the very first time, the number of part- time employees is nearly equal to those in full-time employment
TABLE 1: KEY RATIOS BY SPA TYPE Revenue (mean):
All
Per visit Per sq ft
Per employed person
Median per spa Revenue Visits
Square feet Total employees (% full-time) US$86 US$161 US$36,941
US$300,000 3,616 2,000
7 (43%)
Day US$76 US$185 US$34,810
US$245,000 3,500 1,900
5 (60%)
For the first time, the number of part-time employees has virtually equalled the number of full-time employees in the spa industry. Although the 2.5 per cent decline in employment seems moderate
compared to other leisure sectors, this doesn’t take into account the sig- nificant shiſt from full-time to part-time employment. Te researchers say: “If each part-time job is considered to be 60 per cent of a full-time equivalent, the decline would have been in excess of 6 per cent”.
THE CHALLENGES AHEAD Many spas used varying forms of discounts/promotions in order to retain volume. Te challenge will be, as the report states, to dis- count “without cheapening the product or damaging reputation”. In addition, the danger of discounting is the difficulty in subse- quently increasing prices back to previous, or even higher levels. Consumers become accustomed to the discounted price which can subsequently act as a barrier to purchasing at the previous higher rates. Any discounting increases the value-consciousness of clients of all spas, even of those spas that do not discount. Staffing is a major issue. On the one hand, payroll is at unsustain-
SPA BUSINESS 4 2010 ©Cybertrek 2010
Medical US$132 US$211
US$54,692
US$437,000 2,500 1,900
5 (60%)
Resort/Hotel US$108 US$106
US$39,366
US$850,000 9,000
10,000 21 (48%)
Other
US$118 US$183
US$38,749
US$550,000 5,050 2,940
15 (33%)
able or unacceptably high levels for 38 per cent of businesses, despite recent downsizing in employment of 6 per cent, as estimated by PwC. Yet, 39 per cent of survey respondents still find a “lack of qualified can- didates applying for positions” and find it “hard to maintain qualified management and staff. [Staff have] high expectations regarding wages, perks, etc ... [meaning it is] unsustainable to keep on full-time staff.” But the shiſt towards more part-time workers has its own pitfalls. Part-
timers may be less loyal, particularly when a full-time position becomes available, and according to survey respondents, “better business train- ing and knowledge [is] needed [but we] cannot invest in training due to restrained budgets especially for more temporary staff”. It is clear that there will be further casualties as the industry moves
from growth into a mature phase in what are turbulent times. Te sur- vivors need to grow demand above all, convincing clients that spas are not only a treat, but contribute to their health and wellbeing. l
ISPA members have free access to the ISPA 2010 US Spa Industry Study. Non-members may visit
www.experienceispa.com, or call +1 888 651 4772 to purchase a study for us$800.
Read Spa Business online
spabusiness.com / digital 35
PHOTO:
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