NEWS
Study: ISPA’s latest research shows signs of hope for US spa industry's recovery
POSTED 13 May 2021 . BY Megan Whitby
Researchers said US spas should prepare to welcome back existing customers as well as a brand new client base who've never been to spas before but have been inspired to do so in light of the pandemic Credit: Shutterstock/Dragon Images
There are definitely grounds for optimism for the later quarters of this year and particularly for 2022
– Colin McIlheney
The International Spa Association (ISPA) has revealed its annual five key spa industry financial indicators from its 2021 US Spa Industry Study – known as the Big Five – during its Stronger Together Summit.

Conducted by PricewaterhouseCoopers (PwC), this initial report outlines overall revenue, number of spa visits, number of spa locations, revenue per visit and total employees for the US spa industry during 2020.

“These statistics provide the clearest picture yet of the pandemic’s impact in the spa sector,” said Lynne McNees, ISPA president.

“We trust these figures, along with the full report coming later this year, will provide the industry at large with meaningful insights they can use to aid their recovery.”

The findings
Results showed that by the end of 2020, the industry had experienced a US$7bn drop in total revenue, decreasing from US$19.1bn at year’s end in 2019 to US$12.1bn (a 36.4 per cent decrease).

Findings indicated resort and hotel spas have been harder hit by this, with an average revenue fall of 46 per cent compared to day spas who had an average drop of 31 per cent.

Spa visits dropped from 192 million in 2019 to 124 million in 2020, while average revenue per visit shifted from US$99.5 to US$97.5.

In addition, as of December 2020, 21,560 spa businesses were recorded*, compared to 22,430 in December 2019.

Encouragingly, the study showed that, as of January 2021, roughly 305,000 spa employees had returned to US spas, compared to the previous 384,000 in January 2020. This represents only a 20.6 per cent drop.

Again, data showed that day spas fared better in these metrics, as one in two resort/hotel spas (51 per cent) reported a greater than 25 per cent decrease in staff, compared to one in five day spas (23 per cent).

McNees remarked: “The timeline for a full recovery is uncertain, but we’re confident that there is considerable demand for spa experiences and that as pandemic-related restrictions continue to lift, spas will make strong gains."

A bright future
Russel Donaldson, manager at Pwc Research, presented the Big Five today to ISPA attendees, alongside his colleague Colin McIlheney, PwC global research leader.

The two researchers told summit attendees that although this research reflects the impact of the pandemic, things look hopeful for the industry.

“It’s clear there’s pent-up demand to get out to spas. There are definitely grounds for optimism for the later quarters of this year and particularly for 2022,” McIlheney said.

Attendees were curious to know how long this increased demand would last and posed the question to the researchers during the Q&A session.

McIlheney responded saying it’s important not to just reflect on customers that used to come, but also focus on the great potential during rebuilding to bring in new customers who've never been to spas before but have been inspired to do so in light of the pandemic.

“Personally, I could see demand rolling on, not just driven by old existing customers but being driven by a new even more diverse base of guests.”

Analysis
For Donaldson, the most intriguing finding was “the fragmentation between different parts of the industry and the outcomes for day spas versus resorts/hotel spas”.

He also said he was struck that research reconfirmed that the spa industry has continued its historic role as a reliable bellwether for the broader economy.

McIlheney felt the location metrics were the most remarkable.

“With regards to locations, there were many people who thought numbers would fall off a cliff,” he said, “but the fact that there are still so many spas – over 20,000 – to choose from is very encouraging.

“In contrast, the drops in revenue and visits were expected and I anticipated they’d be in and around the mark they were.”

ISPA will release the full study in July 2021 packed full with even more insights and data.

The study has been an annual ISPA instalment since 1999 and this year it surveyed over 2,050 establishments including day spas, destination spas and medical spas.

*The count of spas includes spas that were temporarily closed at the end of the calendar year 2020.
RELATED STORIES
How can spas reimagine the future? Asks ISPA keynote Seth Mattison


COVID-19 has presented our industry with a chance to reinvent itself, said thought leader Seth Mattison at ISPA's Stronger Together Summit.
Patrick Huey and Lynne McNees share top highlights from ISPA summit


Throughout the pandemic, the International Spa Association (ISPA) has championed the strength of the spa community and strived to support, inform and inspire the industry as it grapples with the new challenges of operating in a COVID-19 landscape.
Seth Godin leads ISPA masterclass on how spas can optimise their marketing strategy


Marketing guru and New York Times best-selling author Seth Godin kicked off ISPA’s Stronger Together Summit today (10 May) with an insightful keynote Power Session about the benefits of using creative, remarkable thinking to transform spa businesses' ideas and practices.
ISPA celebrates creativity and reveals 2021 ISPA Innovate Awards winners


The International Spa Association (ISPA) has named 12 winners of the 2021 ISPA Innovate Awards.
 


CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2021

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS
 
Leisure Management - Study: ISPA’s latest research shows signs of hope for US spa industry's recovery...
25 Jun 2021 Leisure Management: daily news and jobs
 
 
HOME
JOBS
NEWS
FEATURES
PRODUCTS
FREE DIGITAL SUBSCRIPTION
PRINT SUBSCRIPTION
ADVERTISE
CONTACT US
Sign up for FREE ezine
Latest news

13 May 2021

Study: ISPA’s latest research shows signs of hope for US spa industry's recovery
BY Megan Whitby

Researchers said US spas should prepare to welcome back existing customers as well as a brand new client base who've never been to spas before but have been inspired to do so in light of the pandemic

Researchers said US spas should prepare to welcome back existing customers as well as a brand new client base who've never been to spas before but have been inspired to do so in light of the pandemic
photo: Shutterstock/Dragon Images

The International Spa Association (ISPA) has revealed its annual five key spa industry financial indicators from its 2021 US Spa Industry Study – known as the Big Five – during its Stronger Together Summit.

Conducted by PricewaterhouseCoopers (PwC), this initial report outlines overall revenue, number of spa visits, number of spa locations, revenue per visit and total employees for the US spa industry during 2020.

“These statistics provide the clearest picture yet of the pandemic’s impact in the spa sector,” said Lynne McNees, ISPA president.

“We trust these figures, along with the full report coming later this year, will provide the industry at large with meaningful insights they can use to aid their recovery.”

The findings
Results showed that by the end of 2020, the industry had experienced a US$7bn drop in total revenue, decreasing from US$19.1bn at year’s end in 2019 to US$12.1bn (a 36.4 per cent decrease).

Findings indicated resort and hotel spas have been harder hit by this, with an average revenue fall of 46 per cent compared to day spas who had an average drop of 31 per cent.

Spa visits dropped from 192 million in 2019 to 124 million in 2020, while average revenue per visit shifted from US$99.5 to US$97.5.

In addition, as of December 2020, 21,560 spa businesses were recorded*, compared to 22,430 in December 2019.

Encouragingly, the study showed that, as of January 2021, roughly 305,000 spa employees had returned to US spas, compared to the previous 384,000 in January 2020. This represents only a 20.6 per cent drop.

Again, data showed that day spas fared better in these metrics, as one in two resort/hotel spas (51 per cent) reported a greater than 25 per cent decrease in staff, compared to one in five day spas (23 per cent).

McNees remarked: “The timeline for a full recovery is uncertain, but we’re confident that there is considerable demand for spa experiences and that as pandemic-related restrictions continue to lift, spas will make strong gains."

A bright future
Russel Donaldson, manager at Pwc Research, presented the Big Five today to ISPA attendees, alongside his colleague Colin McIlheney, PwC global research leader.

The two researchers told summit attendees that although this research reflects the impact of the pandemic, things look hopeful for the industry.

“It’s clear there’s pent-up demand to get out to spas. There are definitely grounds for optimism for the later quarters of this year and particularly for 2022,” McIlheney said.

Attendees were curious to know how long this increased demand would last and posed the question to the researchers during the Q&A session.

McIlheney responded saying it’s important not to just reflect on customers that used to come, but also focus on the great potential during rebuilding to bring in new customers who've never been to spas before but have been inspired to do so in light of the pandemic.

“Personally, I could see demand rolling on, not just driven by old existing customers but being driven by a new even more diverse base of guests.”

Analysis
For Donaldson, the most intriguing finding was “the fragmentation between different parts of the industry and the outcomes for day spas versus resorts/hotel spas”.

He also said he was struck that research reconfirmed that the spa industry has continued its historic role as a reliable bellwether for the broader economy.

McIlheney felt the location metrics were the most remarkable.

“With regards to locations, there were many people who thought numbers would fall off a cliff,” he said, “but the fact that there are still so many spas – over 20,000 – to choose from is very encouraging.

“In contrast, the drops in revenue and visits were expected and I anticipated they’d be in and around the mark they were.”

ISPA will release the full study in July 2021 packed full with even more insights and data.

The study has been an annual ISPA instalment since 1999 and this year it surveyed over 2,050 establishments including day spas, destination spas and medical spas.

*The count of spas includes spas that were temporarily closed at the end of the calendar year 2020.



Connect with
Leisure Management
Magazine:
View issue contents
Sign up:
Instant Alerts/zines

Print edition
 

News headlines
Accor to introduce avant-garde wellness sanctuary at first SO/ resort in Spain
Accor to introduce avant-garde wellness sanctuary at first SO/ resort in Spain   25 Jun 2021

Accor’s vibrant lifestyle brand SO/ Hotels & Resorts, together with Sotogrande SA, developer and creator of the namesake destination, will unveil the .... more>>
Clinique La Prairie upgrades Bangkok flagship with new mediwellness technology and treatments
Clinique La Prairie upgrades Bangkok flagship with new mediwellness technology and treatments   24 Jun 2021

Luxury Swiss spa and wellness destination brand Clinique La Prairie has launched a new medical menu at its Bangkok Aesthetics & Medical Spa .... more>>
KAAN-designed renovation of Antwerp arts museum among winners of Architectural Heritage Intervention awards
KAAN-designed renovation of Antwerp arts museum among winners of Architectural Heritage Intervention awards   24 Jun 2021

The "respectful renovation" of the Royal Museum of Fine Arts in Antwerp, Belgium is among the four winners of this year's European Award for .... more>>
Technogym launches new app with revenue-sharing option for gyms
Technogym launches new app with revenue-sharing option for gyms   24 Jun 2021

Technogym has launched a new app featuring an AI-powered digital coach. The Technogym App is designed for health clubs looking to tap into the .... more>>
Barry's signs content partnership with Forme
Barry's signs content partnership with Forme   23 Jun 2021

Forme has signed an exclusive partnership with boutique fitness operator Barry's, the latest sign of the blurring of boundaries between the at-gym and .... more>>
European health club revenues fell by a third in 2020
European health club revenues fell by a third in 2020   23 Jun 2021

The number of active memberships across European health clubs fell by roughly 10 million – or 15.4 per cent – during 2020, a year defined by the .... more>>
Company profile


Red Light Rising Ltd

Company is owned by the founders James Strong and Bryan Gohl. We launched in late 2017 and continue to grow.

View full profile>>

Catalogue gallery


Featured Supplier

Increasing staff productivity with technology

Increasing staff productivity with technology

As spas reopen after more than a year of fluctuating restrictions, spa operators face a new challenge. More>>




in this issue

• Virgin gets right to wipe out rent arrears
• Fitness industry mourns passing of Jan Spaticchia
• STA offers mindfulness resources



Latest jobs

Jobs Search



Operations Assistant (Dry Site)
Salary: Competitive
Location: Pickering, UK
Company: Everyone Active
Self Employed Personal Trainer
Salary: Competitive
Location: Scarborough, UK
Company: Everyone Active
Catering Assistant
Salary: Competitive
Location: Scarborough, UK
Company: Everyone Active
Diary dates
Powered by leisurediary.com




01-04 Jul 2021

RiminiWellness

Expo Centre & Riviera di Rimini, Italy



Leisure Management magazine 2018 issue 1
Leisure Management
2018 issue 1

View issue contents
View on turning pages
Download PDF
  Tourism: Right to roam
Sweden is inviting everyone to come and stay – and indulge in a spot of wild camping. Jenny Kaiser from VisitSweden talks about the initiative More>>
  Social good: Spice of life
Oomph! founder Ben Allen is bringing variety to residential homes More>>


Leisure Management magazine 2016 issue 1

Leisure Management
2016 issue 1

View issue contents
View turning pages
Download PDF
  Sports: Play to the crowd
When public sector budgets are tight, crowdfunding is an attractive option More>>
  Hospitality: Wasted opportunity
Restaurants take innovative approaches to solve the problem of food surplus More>>


Published by Leisure Media Tel: +44 (0)1462 431385 | Contact us | About us | © Cybertrek Ltd