Pulse November / December 2023 | Page 59

ISPA Foundation Partners with PwC for the ISPA U . S . Spa Industry Study

THE SPA INDUSTRY ENTERED 2022 STILL FACING CHALLENGES from the effects of the pandemic . Though spa operating hours were no longer hugely affected by the pandemic , other issues had emerged , such as staffing difficulties and price inflation . A PwC-prepared report on the 2023 ISPA U . S . Spa Industry Study focuses on how the industry met the challenge of sustaining the momentum in the recovery from the pandemic . In the

following pages , we will review some of the main findings in the 2023 report and consider its utility in predicting and informing decisions about growth of individual spa businesses and the spa industry as a whole . Note that , while the Study and related report focus on the spa industry in the U . S ., many of its themes and findings are applicable to the global spa community .

History and Methodology of the U . S . Spa Industry Study

First conducted in 2000 to assess the spa industry in 1999 , the Spa Industry Study is now an annual initiative to evaluate and benchmark the health and direction of the spa business community . The Study is the ISPA Foundation ’ s largest annual research investment and is made possible by the support of ISPA members .

Throughout the 24-year history of the Study , the ISPA Foundation has partnered with PwC to ensure consistent data expertise . As a leading global professional services firm , PwC is known for its proficiency in market research and data analysis , which is invaluable in producing accurate and comprehensive industry reports .

The estimates for key statistics in the 2023 Study are based on responses relating to 2,829 establishments . Those establishments were based on 438 survey returns submitted for either single locations or composite returns for businesses with multiple spa locations . For information about Study methodology , members should view the full 2023 ISPA U . S . Spa Industry Study report in the Research Library on experienceispa . com .

Operational Value of the Study

Operational predictors and direction are immensely valuable to industry leaders , including spa owners , operators , investors and policymakers . Here ’ s why : l

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Strategic planning : Spa businesses can use the data to make informed decisions about expanding their services , locations or marketing efforts . Competitive insights : Understanding industry trends and competitors ’ performance helps spa leaders stay ahead in the market . Investment decisions : Investors and financial institutions use this data to assess the viability of investing in the spa industry . Policy development : Policymakers can rely on industry studies to craft regulations and incentives that support the growth of the spa sector . Educational resources : Industry associations and academic institutions can use the data for research and educational purposes .

“ Big Five ” Statistics

The report has several components covering a wide range of data . Perhaps the most eagerly anticipated each year — and certainly the most widely cited in popular media — is the list of “ Big Five ” statistics : l l l l l

Number of establishments Revenues Number of visits Revenue achieved per visit Employment In 2022 , “ Big Five ” numbers were strong . Total spa industry revenue is estimated to have risen 11.1 percent to $ 20.1

Members may access the complete 2023 ISPA U . S . Spa Industry Study in the Research Library , found in the Resources tab at experienceispa . com .

NOVEMBER / DECEMBER 2023 n PULSE 57