The market research company Intelligent Spas has released its fourth Spa Benchmark Report on Thailand's spa industry, noting the region's trends and growth.
Intelligent Spas’ fourth Spa Benchmark Report on Thailand found the 743 spas operating in Thailand are expected to generate approximately $275 million in revenue during 2009. Thailand hosts the highest number of spas in the region and the research confirmed spa numbers have increased 202% since 2002. The new report presents an extensive collection of financial statistics, including breakdowns of key performance indicators by day spas, hotel spas and resort spas.
Some key findings included:
- Forty-six percent of spas are day spas (not co-located with accommodation) and 54% were destination spas incorporating hotel, resort and retreat spas offering overnight accommodation.
- The spa industry is forecast to employ more than 10,600 people in 2009, which was a 3% decrease on 2008 employment numbers.
- Almost one-third of visits to hotel spas are from people not staying in the adjoining hotel, highlighting the importance of hotel and resort spas also catering to their local markets in terms of operational policies and procedures and incorporating local day spas in their competitor analysis activities.
- Starting prices of standard spa treatments are higher at resort spas.
- Twenty-six percent of survey respondents observed the latest spa industry trend is more spa guests are preferring natural and organic products.
“Thai spas experienced a drop in revenue during 2009; however, the number of visits and employees have remained relatively stable. While this is encouraging, a number of key benchmark ratios are forecast to decline, so spa operators, suppliers and consultants need to apply this new research to help them successfully compete in 2010,” stated Julie Garrow, managing director of the independent research company Intelligent Spas.
Andrew Jacka, president of the Thai Spa Association, stated, "Given the global economic turmoil of the past year or so, the release of this, the latest Thai Spa Benchmark Report, is timely. A chance to reflect and plan for the future based on an element of reality of where the industry is and how it has been affected by both local and global issues, rather than just on speculation. The statistics this benchmark report provides give an unequalled insight into the Thai spa industry highlighting its true level of wellness. This report is an essential business tool for every serious minded spa operator."
Spa benchmarks available
The full report is available from Intelligent Spas Web site at www.IntelligentSpas.com and contains more than 800 updated spa industry benchmarks relating to total spa 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 global research methodology implemented by Intelligent Spas.
Other statistics and benchmark ratios featured in the report include:
- average revenue per visit
- total revenue per available treatment hour and minute
- total revenue per square foot
- total revenue per available treatment room
- total revenue per employee
- breakdown of total revenue, including retail revenue
- breakdown of total expenses
- visitor profiles by gender, age and residence
- proportion of hotel guests visiting the spa
The report also presents a collection of supporting business 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.
- Spa industry trends relating to treatments and clients.
Research objectives and sampling
This Spa Benchmark Report aims to provide a reliable update of the spa population, profile, size and value, plus calculate updated and reliable industry benchmarks for key financial and performance indicators. The research achieved a response of 169 validated spa businesses, representing 24.3% of the spa population, where 5% is considered reliable in industry research terms, and is available for purchase from www.IntelligentSpas.com. Note: Intelligent Spas does not conduct anonymous surveys. Each respondent must identify themselves, comply with Intelligent Spas’ benchmark definition of “spa” and pass numerous screening criteria to qualify to ensure the research is accurate and reliable for users. Intelligent Spas' 100% independence policy ensures all individual survey data submitted by spas is not used for any other purpose.
Intelligent Spas is one of the only 100% independent research companies specializing in the spa industry. Founded in Singapore in 2001, it has helped to pioneer spa industry research in the greater Asia Pacific region and continues to publish a range of Spa Operations Manuals and Spa Benchmark Reports to assist the performance and growth of this essential industry.
Intelligent Spas' Global Spa Benchmark Program is currently underway in more than 80 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.