The recession has given operators the freedom to re-engineer the employment terms of staff. Many more are now part-time and receive few, if any, benefits
By Liz Terry | Published in Spa Business 2013 issue 4
This year’s market research numbers have just been published for the US spa market, showing continuing signs of recovery.
ISPA’s 2013 US Spa Industry Study, PricewaterhouseCoopers (PwC), found the five main measures of trading: visits to spas, spend per visit, total revenues, staff levels and total number of spas, have experienced growth (see our report on page 48).
The PwC team found total revenues were up us$1.2bn – 4.7 per cent – to a healthy us$14bn (€10.1bn, £8.7bn) against a pre-recessionary peak of us$12.8bn (€9.3bn, £7.9bn).
As at May 2013, there were 19,960 spas in the US: an increase of 1.1 per cent over the previous year and a great deal healthier than 2009-10, when closures outpaced new locations for two years.
Hard on the heels of the ISPA report came Trends in the Hotel Spa Industry from PKF Consulting USA (PKF).The two reports make interesting reading – especially when considered together. This is especially true around the area of staffing.
The ISPA research found that although employment increased by 1.2 per cent – up a percentage point on the previous year – there was a “marked shift” from full-time employment – which declined by 7.2 per cent – to part time employment, which was up 13.2 per cent. PwC says this could be an indication of “wider changes in American working practices,” or that it “reflects the spa industry’s commitment to maintaining a flexible workforce.”
The industry’s approach to employment is highlighted by the PKF report, which found that while payroll expenses for hotel employees average 29.6 per cent, spa is running at 22.8 per cent – a whopping 6.8 per cent less. They attribute this to the fact that “many spa technicians work as independent contractors and therefore are not eligible to receive a full package of benefits.”
The recession has given operators unusual freedom to re-engineer the employment terms of staff and they’ve done so in ways that enable them to gain many commercial advantages.
Although profitability is vital, if we’re to build a reputation as a credible industry that offers good careers and practices what it preaches, we need to be mindful of the need to balance these two demands.
Read more from this issue of Attractions Management magazine
View contents of Attractions Management 2013 issue 4
Interview: Helene Goetzelmann
L'Occitane's international spa director tells Rhianon Howells how the consumer retail company has become a spa operator with 60 facilities
Ask an expert: Profit & Loss
Hotel spas need to fight capital expenditure allocation said an investor panel at this year's Global Spa & Wellness Summit
Research: All rise
There's been an increase in the five top key performance indicators in the US spa industry shows the 2013 ISPA study
Company Profile Promotion: ESPA promotion
As ESPA's 20th
anniversary year draws
to a close, founder and
CEO Sue Harmsworth
explains how and why the
company is still evolving
Safari Spa: Animal instinct
Safari spas are the staple for Amani, one of South Africa's largest spa chains. Lisa Starr talks to MD Ronleigh Gordon
Trends: Brief encounters
We take a look at some of the most innovative spa pop-ups, a growing trend across the leisure sector
Interview: Paul Smyth
Something & Son designer shares his insights on creating pop-up spa facilities. Magali Robathan reports
Summit review: Upping the ante
Katie Barnes reveals the takeaway messages from the 2013 Global Spa & Wellness Summit in New Delhi, India, attended by 375 industry leaders
Research: Local news
Domestic travellers dominate the global wellness tourism market which has an economic impact of US$1.3 trillion. SRI's Ophelia Yeung reports
Research: Thai up
Prantik Bordoloi analyses a 2013 Thai spa industry study based on both spa consumer and spa operator opinions
Software news: Tech talk
The latest developments and news from spa software suppliers from around the world
An opportunity to reimagine one of the UK’s most recognisable towers has been formally
opened by Rivington Hark, as St Johns Beacon invites operators and partners to shape its
next phase. [more...]
The recession has given operators the freedom to re-engineer the employment terms of staff. Many more are now part-time and receive few, if any, benefits
By Liz Terry | Published in Spa Business 2013 issue 4
This year’s market research numbers have just been published for the US spa market, showing continuing signs of recovery.
ISPA’s 2013 US Spa Industry Study, PricewaterhouseCoopers (PwC), found the five main measures of trading: visits to spas, spend per visit, total revenues, staff levels and total number of spas, have experienced growth (see our report on page 48).
The PwC team found total revenues were up us$1.2bn – 4.7 per cent – to a healthy us$14bn (€10.1bn, £8.7bn) against a pre-recessionary peak of us$12.8bn (€9.3bn, £7.9bn).
As at May 2013, there were 19,960 spas in the US: an increase of 1.1 per cent over the previous year and a great deal healthier than 2009-10, when closures outpaced new locations for two years.
Hard on the heels of the ISPA report came Trends in the Hotel Spa Industry from PKF Consulting USA (PKF).The two reports make interesting reading – especially when considered together. This is especially true around the area of staffing.
The ISPA research found that although employment increased by 1.2 per cent – up a percentage point on the previous year – there was a “marked shift” from full-time employment – which declined by 7.2 per cent – to part time employment, which was up 13.2 per cent. PwC says this could be an indication of “wider changes in American working practices,” or that it “reflects the spa industry’s commitment to maintaining a flexible workforce.”
The industry’s approach to employment is highlighted by the PKF report, which found that while payroll expenses for hotel employees average 29.6 per cent, spa is running at 22.8 per cent – a whopping 6.8 per cent less. They attribute this to the fact that “many spa technicians work as independent contractors and therefore are not eligible to receive a full package of benefits.”
The recession has given operators unusual freedom to re-engineer the employment terms of staff and they’ve done so in ways that enable them to gain many commercial advantages.
Although profitability is vital, if we’re to build a reputation as a credible industry that offers good careers and practices what it preaches, we need to be mindful of the need to balance these two demands.
Read more from this issue of Attractions Management magazine
View contents of Attractions Management 2013 issue 4
Interview: Helene Goetzelmann
L'Occitane's international spa director tells Rhianon Howells how the consumer retail company has become a spa operator with 60 facilities
Ask an expert: Profit & Loss
Hotel spas need to fight capital expenditure allocation said an investor panel at this year's Global Spa & Wellness Summit
Research: All rise
There's been an increase in the five top key performance indicators in the US spa industry shows the 2013 ISPA study
Company Profile Promotion: ESPA promotion
As ESPA's 20th
anniversary year draws
to a close, founder and
CEO Sue Harmsworth
explains how and why the
company is still evolving
Safari Spa: Animal instinct
Safari spas are the staple for Amani, one of South Africa's largest spa chains. Lisa Starr talks to MD Ronleigh Gordon
Trends: Brief encounters
We take a look at some of the most innovative spa pop-ups, a growing trend across the leisure sector
Interview: Paul Smyth
Something & Son designer shares his insights on creating pop-up spa facilities. Magali Robathan reports
Summit review: Upping the ante
Katie Barnes reveals the takeaway messages from the 2013 Global Spa & Wellness Summit in New Delhi, India, attended by 375 industry leaders
Research: Local news
Domestic travellers dominate the global wellness tourism market which has an economic impact of US$1.3 trillion. SRI's Ophelia Yeung reports
Research: Thai up
Prantik Bordoloi analyses a 2013 Thai spa industry study based on both spa consumer and spa operator opinions
Software news: Tech talk
The latest developments and news from spa software suppliers from around the world
Hotel de France, located on the British Isle of Jersey, has created a wellness retreat package
that includes a hot yoga session that will take place in Jersey Zoo’s butterfly sanctuary.
A new immersive attraction designed to transport visitors into the final hours of ancient Pompeii
is preparing to open near the world-famous archaeological site in southern Italy.
Experience design company, BRC Imagination Arts, has completed a transition that sees founder
Bob Rogers pass ownership of the business to four long-serving senior executives, while
remaining actively involved with the company.
Movie Park Germany has opened a new Paramount Pictures-themed attraction as part of its 30th
anniversary celebrations, using immersive storytelling and adaptive reuse to reinforce the park’s
longstanding “Hollywood in Germany” positioning.
Therme Manchester’s 28-acre development, which will include interconnected glass pavilions
that measure 65,000sq m, will be the largest bathing and wellbeing attraction in the world once
complete, according to prof David Russell, CEO of Therme UK.
Efteling has opened Hooghmoed, a new family drop tower designed to broaden the appeal of its
recently launched Sirene Island themed area and introduce younger visitors to thrill attractions.
A proposed Puy du Fou development near Bicester and Universal Destinations and Experiences’
planned resort in Bedford are emerging as part of a wider transformation of the Oxford–
Cambridge Growth Corridor into a major centre for UK leisure and tourism inv
Shedd Aquarium has opened the Immersion Theater developed in partnership with SimEx-
Iwerks, as part of a wider strategy to enhance the guest experience and create additional
revenue opportunities.
The UK government has announced a temporary reduction in VAT on visitor attractions and
children’s meals as part of a summer cost-of-living support package designed to stimulate the
visitor economy and encourage family days out.
As designer Yinka Ilori prepares for his first solo gallery show in London, he speaks exclusively
to CLADmag about his mission to spread joy, the power of play, and his bold approach to using
colour (including the colours you won’t see in his work).
The government of Thailand is exploring plans for a THB300bn (£6.3bn, US$8.3bn)
entertainment complex in the country’s Eastern Economic Corridor (EEC), with officials
proposing a large-scale theme park and sports destination as part of a broader tourism and
economic development strategy.
+ More news
COMPANY PROFILES
Taylor Made Designs Founded in 1993, Taylor Made
Designs supply corporate clothing
and brand-enhancing merchandise
to [more...]
Sally Corporation Our services include: Dark ride design & build; Redevelopment of existing attractions; High-quality [more...]
Simworx Ltd The company was initially established
in 1997. Terry Monkton and Andrew
Roberts are the key stakeh [more...]
An opportunity to reimagine one of the UK’s most recognisable towers has been formally
opened by Rivington Hark, as St Johns Beacon invites operators and partners to shape its
next phase. [more...]
