RESEARCH
RESULTS FROM THE ISPA 2012 US SPA INDUSTRY STUDY SHOW THAT THE COUNTRY’S OPERATORS ARE MAKING FURTHER, POSITIVE PROGRESS. PWC’S COLIN MCILHENEY ANALYSES THE FINDINGS AND THE CHALLENGES AHEAD
COLIN McILHENEY » GLOBAL RESEARCH DIRECTOR » PRICEWATERHOUSECOOPERS T
he 2012 US Spa Industry Study by the International Spa Association (ISPA) provides a profi le of the spa
industry in the US throughout 2011 and also into the fi rst half of 2012. Its fi ndings are based on a survey of 807 spa operators across the US, including day spas, hotel/resort spas, medical spas, club spas, destination spas and mineral springs spas. Criteria analysed include the regional distribution of spas, their type, ownership structure, number of client visits and service/product off erings. T is year’s study focused on the industry’s
performance as it kept pace with an economy still in gradual emergence from the reces- sion, and as spas adapted to an increasingly competitive marketplace where cost-con- scious consumers are shopping around. T e report gauged the extent to which
the industry has stabilised and experienced growth. T is was measured by examining the change across fi ve key factors: revenues,
spa visits, number of locations, fl oor space and staffi ng levels (see Table 1). To gain insight into more recent and
emerging trends, spa operators were also asked about their experiences during the period of September 2011 to March 2012. T eir answers reveal that the steady upward trajectory has continued from 2011. Survey questions also identifi ed the key
challenges facing spas as they regain ground and the changes operators have made to ensure they stay competitive and deliver value and professionalism to clients.
GRADUAL PROGRESS During 2011, the spa industry in the US con- tinued to build on the moderate growth experienced in 2010 when business gradually picked up aſt er the downturn and customer visits increased (see sb11/4 p38). All fi ve key performance factors for the
spa industry either grew or held steady com- pared to their 2010 performance. Total spa revenue for 2011 rose to us$13.4bn (€10.2bn, £8.3bn) – a 4.5 per cent increase on 2010 and
TABLE 1: THE BIG FIVE STATISTICS:
2011 OUT-TURN AND % CHANGE IN 2011* *2010 (YEAR END)
REVENUE SPA VISITS LOCATIONS
TOTAL EMPLOYEES FULL-TIME PART-TIME CONTRACT
SQUARE FOOTAGE
US$12.8 billion 150 million 19,900
2011 (MAY) 338,600 149,200 134,200 55,200
76 million sq ſt *Source: ISPA 2012 US Spa Industry Study 40 Read Spa Business online
spabusiness.com / digital
*2011 (YEAR END) % CHANGE US$13.4 billion 156 million 19,850
+4.5% +4.1% -0.4%
2012 (MAY) 339,400 163,100 128,500 47,800
77 million sq ſt
+0.2% +9.3% -4.3% -13.4% +0.8%
a fi gure which has now surpassed the pre- recession peak of us$12.8bn (€9.8bn, £8bn) achieved in 2008. T is is an important mile- stone as the industry recovers. The performance mirrors the overall
recovery rate across the US economy. In 2011, total consumer spending on services in the nation grew by 3.7 per cent. While, for the second year in a row, average revenues per spa expanded, rising by 4.9 per cent in 2011 to us$673,000 (€513,350, £417,000). T is increase in spa revenues is driven largely by a boost in visits, up by 4.1 per cent in 2012 to 156 million. But while visits were up, revenue per visit stayed virtually unchanged at us$86 (€66, £53), with a slight liſt of 0.4 per cent compared to 2010. Nonetheless the notable increase in visits is a positive sign. Across the US, the total number of spa loca-
tions now stands at 19,850, largely unchanged from 19,900 in 2010. Aſt er declines in both 2009 and 2010, this is welcome news. In those years, spa locations fell by 1,400. Day spas are still by far the largest category, representing 78.9 per cent of all spas in the US, followed by medical spas at 8.8 per cent, resort/hotel spas at 8.7 per cent, club spas at 2.9 per cent, destination spas at 0.4 per cent and mineral springs spas at 0.3 per cent . Total employment held steady, with a 0.2
per cent increase between May 2011 and May 2012. Yet there’s been a marked shiſt towards full-time employees, up by 9.3 per cent; a fur- ther sign that the industry’s back on track. Total square footage also held steady, with an expansion of less than 1 per cent.
MORE RECENT TRENDS T e survey of spa operators covering from September 2011 to March 2012 revealed a con- tinuation of the upward trend. T e majority of spa operators reported a liſt in demand compared to the same period one year ago.
SPA BUSINESS 4 2012 ©Cybertrek 2012
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