“ 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