PULSE POINTS

BY JOSH CORMAN

THERE HAS BEEN A TREMENDOUS AMOUNT OF SPEC- ULATION about how the spa industry ’ s recovery from the COVID-19 pandemic would progress . Anecdotal reports from spa leaders of sky-high demand following the lifting of pandemic-related restrictions have been common in recent months , and the forward-looking analysis of PwC representatives Colin McIlheney and Russell Donaldson during the unveiling of the so-called Big Five statistics at the ISPA Stronger Together Summit will likely have only added to the feeling that the industry is poised for a significant rebound in the months and years ahead .

As McIlheney , leader of global research at PwC , noted during the pair ’ s presentation in May , there is much to suggest that a pent-up demand for spa services will lead to a potentially sharp rebound for the industry , especially in areas where pandemic-related restrictions are no longer in effect . Donaldson concurred with his colleague ’ s assessment , explaining that , though the economic impact of the pandemic had a statistical effect on the industry similar to the great recession in terms of lost revenue , the causes of those two downturns were different , meaning the industry ’ s recovery from each will likely be different as well . The great recession led to a lack of demand due to a sharp drop in consumer spending power .“ Luxuries ” such as spa treatments were cut from many spa-goers ’ budgets at the time , leading to a decline in bookings . But the pandemic , as Donaldson explained , created a lack of supply . Because spas were either closed or operating under occupancy restrictions for much of 2020 , they simply couldn ’ t provide the volume of services required to keep revenues at typical levels . With those sorts of restrictions out of the picture , the supply of and demand for spa services should come back into balance , and revenues are likely to fall in line when they do .

44 PULSE ^■ AUGUST 2021