“ There are now more spas in the U . S . than at any time in history : an estimated 21,770 spa establishments , overtaking the previous record ( 21,300 ) registered just before the financial crisis in 2008 .” context of other leisure segments , health and racquet club revenues are at $ 27.1 billion , the cruise line industry is at $ 21.6 billion and the amusement and theme park industry is on a par with the spa industry . As the economy marches on with much higher growth figures in the second quarter of 2018 , there is confidence across many spas that they will see that reflected in their own numbers — the spa industry being a good bellwether for overall spending patterns .
PulsE PoiNts
2018 ISPA U . S . Spa Industry Study :
THE SPA INDUSTRY IN THE U . S . CONTINUES TO BE IN BUOYANT FORM . The 2018 U . S . Spa Industry Study conducted by PwC highlights further strong growth in the sector . Every one of the ‘ Big Five ’ statistics has hit an all-time high , with revenue passing $ 17 billion for the first time . However , even with a record number of people currently employed in the industry , there are still over 35,000 service provider positions and more than 2,500 spa director manager positions vacant across the country . The study re-enforces the view that this is the “ biggest issue of the day .”
The performance of the U . S . economy is the key backdrop for assessing the upward trajectory of the spa industry . With annualized growth of 2.2 percent in the economy as a whole , the growth in revenue for the spa industry of 4.3 percent is a very positive sign . Total revenue now stands at $ 17.5 billion ; this number has climbed for eight successive years , and total industry revenues are now 43 percent higher than at the 2009 downturn ($ 12.3 billion ). In the by coliN McilHENEy
“ There are now more spas in the U . S . than at any time in history : an estimated 21,770 spa establishments , overtaking the previous record ( 21,300 ) registered just before the financial crisis in 2008 .” context of other leisure segments , health and racquet club revenues are at $ 27.1 billion , the cruise line industry is at $ 21.6 billion and the amusement and theme park industry is on a par with the spa industry . As the economy marches on with much higher growth figures in the second quarter of 2018 , there is confidence across many spas that they will see that reflected in their own numbers — the spa industry being a good bellwether for overall spending patterns .
There are now more spas in the U . S . than at any time in history : an estimated 21,770 spa establishments , overtaking the previous record ( 21,300 ) registered just before the financial crisis in 2008 .
In 2017 , there were an estimated 1,080 new spa openings , adding 5.1 percent to the number of spas in operation . The new spa openings were partly offset by an estimated 580 spa closures over the course of 2017 . The net effect was the addition of approximately 500 spa locations during 2017 ( 2.4 percent ). This showcases the growth of the industry as a whole .
Average revenues per spa location rose to $ 803,000 in 2017 , an increase of 1.9 percent on the 2016 average of $ 788,000 . With average revenues now passing the benchmark $ 800,000 level , the 2017 out-turn represents a further steady advance for the industry .
More than half a million people are visiting U . S . spas every day . This equates to some 187 million visits in 2017 . This combination of revenues and visits translates into a figure of revenue per visit of $ 93.70 , which is up again .
The report provides an often-unseen illuminating insight into the importance of gift cards for the industry . The data suggests that 83 percent of spas offer gift cards ; the revenue generated is $ 1.55 billion ( 9 percent of overall revenue ) and equates to revenue of $ 86,200 per spa .
One of the most compelling numbers in the study is the total number of individuals employed in the U . S . spa industry . This now stands at 372,100 , which is the highest figure ever recorded . The balance of full and part time roles is basically now at a balance of 50-50 , and the number of contractors continues to decline .
The economic context is again crucial . Unemployment levels in the U . S . are at near-record lows , yet the number of vacancies in the spa industry is rising . There are 35,480 service provider roles open and 2,540 spa directors and managers required . There are many initiatives being undertaken to address this deficit — but it is clear that this shortfall may well be beginning to impact the
20 PULSE ■ October 2018