Sign in

Spa Business Strategies for Economic Downturn

By Julie Garrow, Managing Director of Intelligent Spas

Get the Skinny! This is just part of the article. Want the complete story, plus a host of other cutting-edge articles to make your job easier? Sign up!

Preliminary findings of Intelligent Spas’ current round of Spa Benchmark Surveys have identified the majority of spa owners and managers are forecasting positive growth in both revenue and spa visits for calendar years 2008 and 2009. This optimism indicates many spa managers believe the spa industry may be protected to some extent from the negative affects of the current economic climate, as spa consumers continue to demand relaxing spa and wellness services despite potential falls in their discretionary spending, coupled with evidence that rationalisation has already occurred in some spa markets.

In June 2008, Intelligent Spas reported 28 spa businesses in Australia had closed down and 10 businesses stopped offering spa treatments in the preceding 18 month period. This indicated some rationalisation within the market place even though the overall number of spas grew by 152% over the previous five years. Similarly Asia Pacific’s largest spa market, Thailand also experienced over 25 spa closures amongst overall strong growth.

This research shows spas are not immune to changes in supply and demand as market places evolve. Over the last five years, although the spa industry has experienced overall strong growth, some rationalisation occurred before the credit crisis began and further rationalisation is likely to occur as the global economy experiences further pressures. This is likely to reduce the timeframe for rationalisation in young spa markets such as Cambodia, which have yet to experience downturn, plus bring uncertainty to spa markets with multiple new developments in the pipeline.

Want the rest of the story? Simply sign up. It’s easy. Plus, it only takes 1 minute and it’s free!



Welcome to the new!

Delivering the best information on the spa, skin care and wellness industry is our passion, and we’ve worked hard to design a powerful new website that incorporates cutting-edge technology to bring you:

  • Mobile-friendly Design
  • Integrated Sample Request
  • Refreshed Look and Feel
  • Dynamic Content
  • Free Registration

Mobile-friendly Design

Providing a unified experience from mobile to desktop, responsive design allows you to access Skin Inc. content from any device, whether you’re in the treatment room, at home or on the go!

Integrated Sample Request

Visit Featured Product pages to quickly and easily identify new suppliers and request product samples and information.

Dynamic Content

Articles are now linked with relevant products so you can find the products and treatments you need to provide the best results for your clients.

Free Registration

Create your user account to gain unlimited access to Skin Inc.’s unparalleled content.

Enjoy the New!

Thank you for joining the Skin Inc. community of passionate skin care professionals. We look forward to providing you the best information to enhance your career!