Prices for primary services have held steady, which refl ects the moderate uplift in consumer demand
try has kept up with the moderate rate of expansion, reversing reces- sionary declines in revenues, visits and staffi ng numbers. In 2010, total spa industry reve-
nues rose by an estimated 4.3 per cent, or 2.6 per cent after adjust- ing for infl ation, 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). T e 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. T ough not back to the pre-re- cession peak of 160 million recorded in 2008, this still marks an impor- tant 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. T is expansion in full-time staffi ng has been the driver of employment increase and indicates that there is a measure of confi - dence 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. T is 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
SPA BUSINESS 4 2011 ©Cybertrek 2011
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 fi gure that is likely to be elevated due to the linger- ing eff ects of the recession. T e 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. T e composition of the industry remains broadly unchanged. Day spas are still in the majority (78 per cent), followed by resort/hotel spas account- ing for 9 per cent of the total; medical spas (8.7 per cent); club spas (2.8 per cent); des- tination spas off ering seven-day wellness
programmes (0.4 per cent); and mineral spring spas (0.3 per cent). Overall, the spa industry recovery refl ects
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 strat- egies to manage the eff ects of the downturn and position themselves for future growth.
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PHOTO:
SHUTTERSTOCK.COM/ ANDREY_POPOV
PHOTO:
SHUTTERSTOCK.COM/PHIL DATE
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