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Top 5 Facts About the Spa Industry in 2011
Posted: October 6, 2011
The newly released ISPA 2011 U.S. Spa Industry Study reveals an increase in spa visits, revenue and the total number of employees to indicate that the spa industry is recovering from the impact of the recession. The five major categories of measurement further explored in the study include: revenue, visits, locations, employment and square footage. Compared to the results from the 2010 Industry Study, the data shows that the spa industry is growing at a moderate pace as the recovery from the economic recession begins to move forward.
“The ISPA 2011 U.S. Spa Industry Study takes an in-depth look at how spas managed the recession, as well as providing information on the types of treatments offered, a breakdown by spa type and marketing tactics employed by spas,” said ISPA President Lynne McNees. “We’re excited to report positive growth in the data and look forward to sharing the information with spa professionals to help them strengthen their business.”
The study, which has been conducted in cooperation with PricewaterhouseCoopers since 2000, provides insights into the industry during 2010 and the beginning of 2011. In addition to investigating the five major indicators the study takes an in-depth look at six other categories affecting the industry.
Industry size and impact of the recession
Many spas remain cautiously optimistic as they continue on the road to recovery. As the fourth largest leisure industry, the spa industry experienced a pick-up in demand with a majority of spas reporting increased visits and revenue. Spas were also more likely to hire staff members with an overall two percent increase in employment. Online services were employed to help increase revenue. Almost all spas (95%) use their own Web site to motivate consumers. Social media is a popular way to promote offerings amongst 81% of spas. Online reviews and directories were also popular with over 50% of spas utilizing them.
Spa industry profile
The composition of spa types remained similar to the previous year. Day spas comprise a significant majority of establishments (79%); resort/hotel spas comprise the second largest segment (9%), with medical spas a close third (8.7%). Other spa types include Club, Mineral Springs and Destination spas. The Northeast maintains the largest portion of spas with 25% while the Southwest region holds 23% of spas. The vast majority of spas, 74%, are single location operations (i.e. not affiliated with a franchise or corporate headquarters).