WHAT ’ S ON THE HORIZON ? In addition to scouring data sources and anticipating opportunities to overdeliver on the guest experience , I also specialize in looking continuously for clues and symptoms of change and talking with my clients about how they can get ready for what ’ s coming next . The goal : getting ahead of the curve and actively creating opportunities by reimagining how they engage with the guest .
Recently , these evaluations have drawn my attention to one possible negative effect of the demand spike the spa industry has experienced for much of the last year . The issue is this : These spikes in demand and revenues are not necessarily the result of our therapists or frontline staff doing something different . In fact , the opposite is true . Guests and spa-goers are the ones doing something different . They have recognized a greater need for self-care and , at the moment , are visiting the spa as a means of addressing their well-being .
As an industry , we ’ re thrilled that demand and revenues have been high , but that boom shouldn ’ t be faced passively . We cannot simply assume that guests ’ newfound enthusiasm for spa and their strong desire for touch is a trend with no end in sight , ignoring the potential vulnerabilities that spas face from forces beyond their control , such as inflation ( which reached a 41-year high of 8.5 percent in March of this year ) or even recession . I ’ ve likened the level of demand the industry is seeing as feeling like a firehose — what happens when that constant , powerful flow of guests diminishes and we haven ’ t trained , readied or empowered ourselves and our teams to maintain it ?
THE NUMBERS TELL THE STORY Guests have shown a clear preference for bringing the kinds of wellnessboosting services spas frequently offer ( or at least approximations of them ) into their homes . Recent ISPA consumer research indicates that more than 70 percent of active spa-goers ( those who have visited a spa in the past year ) utilize spa services in their own homes and in a traditional spa environment . As research from business consulting firm McKinsey recently concluded ,“ These days , consumers view wellness through a much broader and more sophisticated lens , encompassing not just fitness and nutrition but also overall physical and mental health and appearance . They also have more choice in the types of products and services they buy and the way they buy them .” 1
Spa leaders seem to be seeing evidence of those attitudes on a consistent basis . Two-thirds of spas reported that retail revenue per treatment was up at least 2.5 percent year-over-year in ISPA ’ s April 2022 Snapshot Survey , with more than one-fifth ( 21 percent ) seeing an increase greater than 10 percent . In addition , the Big Five statistics from the 2022 ISPA U . S . Spa Industry Study indicated an increase in revenue per spa visit of more than seven percent , up to $ 104.5 per visit — an all-time high — from $ 97.5 from the year before ( that figure ’ s previous peak was $ 99.5 in 2019 ).
All of these figures add up to a strong indication that guests are looking for more of the kinds of benefits spa treatments bring them , whether through a basic service , add-ons and enhancements , retail items purchased at the spa or third-party items and products they can use on their own .
The question for the spa industry is how to do more than simply take advantage of shifting consumer attitudes and behaviors . Rather than merely reacting to new circumstances , spas must be more proactive , taking this opportunity to broaden their understanding of what their guests want from a wellness perspective and owning the process of educating guests , making sound recommendations and leveraging the unparalleled power of the spa experience to make it more likely for guests to see the spa as their best option for maintaining and improving their wellness across a range of categories .
THE FIGHT FOR THE WELLNESS SPACE Additional research from McKinsey shows that consumers are most interested in six particular wellness-related categories : health , fitness , nutrition , sleep , appearance and mindfulness . 2
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