PULSE POINTS
CONTINUED
of hotel resort spas enjoyed a profit percentage of more than 20 percent .
Among all other spas , profit percentages were more unevenly distributed , although , overall , they too were strong . About one in five of these spas ( 21 percent ) noted a percentage of more than 35 percent , while 47 percent reported a profit percentage of at least 15 percent . The most commonly reported profit percentage range for non-resort / hotel spas was between 10.1 and 15 percent .
These figures may be explained by a range of factors , including reduced labor costs due to staff shortages and the price increases that many spas implemented as demand for services rose over the course of the year .
COMPENSATION Along with the COVID-19 pandemic itself , one of the most significant occurrences in the U . S . spa industry landscape in 2021 was the Great Resignation and its effects on everything from turnover to compensation rates . As workers in nearly every sector re-evaluated their employment situation , millions left their jobs . The desperate need for employees and the increased competition for their services drove up compensation levels and forced many employers to expand the scope of their time off and benefits packages , as well as their workplace culture , as they looked for an edge in hiring and retaining qualified employees .
In the U . S . spa industry , those in leadership and management saw their compensation levels rise less sharply than among other spa employee types , particularly massage therapists . Nearly a third of respondents noted that compensation levels for leadership or management positions did not change in 2021 , while 45 percent indicated that compensation for those positions had risen 10 percent or less . Just under one in eight spas ( 13 percent ) indicated that leadership or management compensation rose by between 10 and 20 percent , while just only two percent of respondents cited increases of more than 25 percent .
Compensation increases among front desk staff ( including receptionist and spa concierge positions ) were similar to those reported for leadership positions , although a greater number of front desk employees ( 20 percent ) reported an increase of between 10 and 20 percent .
Massage therapists saw the greatest degree of movement in their compensation levels , with just 10 percent of respondents reporting no change to that figure . More than twothirds of those surveyed ( 69 percent ) said massage therapist compensation at their spas had grown by at least five percent , with nearly one in three ( 30 percent ) reporting an increase of between 10 and 20 percent . Increases of between five and 10 percent were most common among day spa respondents , while hotel / resort spas most commonly cited increases of between zero and five percent . At the same time , however , nearly a quarter of hotel / resort spas ( 23 percent ) said that therapist compensation at their spas rose by more than 15 percent , compared to 15 percent of day spas .
The figures discussed here represent only a small portion of the illuminating data contained within the 2022 ISPA U . S . Spa Industry Study , which also includes research on spas ’ evolving service menus , retail revenue figures , pricing information , revenue management practices and more . The complete results report is available to all ISPA members at experienceispa . com . n
“ Massage therapists saw the greatest degree of movement in their compensation levels , with just 10 percent of respondents reporting no change to that figure .”
Movement in annual compensation levels , massage therapists 32 %
18 %
7 %
NOT APPLICABLE
10 % |
12 % |
12 % |
1 % |
|
|
|
|
|
3 % |
DECREASE |
NO CHANGE |
0-5 % |
5-10 % |
10-15 % |
15-20 % |
20-25 % |
4 %
MORE THAN 25 %
50 PULSE n AUGUST / SEPTEMBER 2022