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New Global Spa Research Shows Benchmarks, Economic Effects

Offering a worldwide view of the spa industry, Intelligent Spas has released its first-ever Global Spa Benchmark Report.

Intelligent Spas has published a Global Spa Benchmark Report, which presents a plethora of financial statistics for the global spa industry and includes breakdowns of key performance indicators by region for the Americas, Europe, Middle East/Africa and Asia Pacific.

This statistical report contains more than 1,850 spa industry benchmarks relating to revenue, expenses, visits and employment, with many topics showing historical data available from 2005 to 2008, plus forecast data for 2009 and 2010. The benchmarks are comparable across the entire spa industry due to the consistent methodology implemented, and the some of the statistics and benchmark ratios featured in the report include:

  • treatment room occupancy;
  • average treatment rate;
  • average revenue per visit;
  • revenue per available minute;
  • therapist productivity rate;
  • repeat visitation rate;
  • capture rate of hotel guests;
  • breakdown of total revenue, including retail revenue;
  • breakdown of total expenses; and
  • visitor profiles by gender, age and residence.

The comprehensive report also presents a collection of other spa industry intelligence, including:

  • Spa business models describing ownership, business structure, management structures.
  • Spa infrastructure covering spa size, space breakdown, treatment rooms and stations, standard support facilities versus water-based support facilities.
  • Spa menus such as variety of hydrotherapy and water-based treatments offered and the range of treatments practiced.
  • And spa industry trends relating to clients and products.

The research confirmed the spa industry is not immune to the effects of the global financial crisis, with operators receiving 13% less visits in 2008 compared to their original forecasts, although revenue achieved was 8.5% higher than expected. Predictions for 2009 revenue and employment have been revised down by 9.4% and 15% respectively; however the outlook for 2010 is more positive with all major regions predicting increases in average revenue and visits per spa.

Other findings from the global survey included:

  • The average spa treatment rate achieved by spas globally in 2008 was $90. Europe achieved the highest rate of $111 and Asia-Pacific received the lowest average rate of $77.
  • The average size of a spa facility was 8,487 square feet and spas contained nine treatment rooms on average.
  • Employees per spa averaged 22.9, with the Americas averaging the most (33.8) and Europe the fewest (13.6).
  • 50% of total spa revenue was spent on salaries, bonuses and employee benefits, 9% on operations/maintenance, 4% on marketing and management and 2% on training.
  • Across the globe, the day spa guest has become a critical target market for hotel and resort spas with 38% of total spa visits at hotel spas coming from local residents and other tourists not staying at that hotel. In Europe and the Middle East/Africa, just 53% percent of hotel spa visits were from in-house guests.
  • The region with the largest percentage of outsourced spas (using a management company) was the Americas at 32%, almost three times higher than the other three regions.
  • All regions are expecting decreases in average annual revenue per spa during 2009, however the outlook for 2010 is brighter with all regions expecting growth between 8% and 32%.

Garrow stated, “After eight years conducting spa industry research within the greater Asia Pacific region, we are thrilled to provide global statistics for this very essential industry. This type of business intelligence is ideal for anyone interested to learn more about the spa industry and is a vital reference for those responsible for the operational or financial performance of their spa or spa-related organization.”

Intelligent Spas' Global Spa Benchmark Program is currently underway in more than 60 countries and aims to produce reliable and comparable statistics to help spas maximize their performance, provide business intelligence to assist other organizations to better understand, service and support the spa industry plus generate greater awareness of the spa industry to increase spa visits.

The Global Spa Benchmark Report incorporates a selection of results from Intelligent Spas' Global Spa Benchmark Program. An response of more than 1,270 validated spa businesses contributed to this report. Note: Intelligent Spas does not conduct anonymous surveys. Respondents must identify themselves, comply with Intelligent Spas’ benchmark definition of “spa” and pass numerous screening criteria to qualify. These practices enable high-quality research to be conducted. Intelligent Spas' 100% independence policy ensures all individual survey data submitted by spas is not used for any other purpose whatsoever.