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
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
Abu Dhabi-based investment firm Mubadala Capital has made a binding, fully financed
€1 billion
offer to acquire Pierre and Vacances SA, the European holiday resort operator behind the
continental European Center Parcs business.
Disney has reaffirmed its commitment to investing US$30 billion in its US parks and cruise
business by 2033, using new America250 celebrations to underline the role its attractions play
in supporting jobs, tourism and economic growth.
Expo 2030 Riyadh is being planned as a permanent visitor destination, with organisers
confirming the six-million-square-metre site will become a Global Village after the event closes.
The owner of one of Australia's best-known waterparks has acquired a major competitor,
creating a new attractions business spanning two of the country's largest visitor destinations.
The Toverland theme park in the Netherlands has announced a €98m expansion programme
that will add a resort, new attractions and staff facilities as it pursues plans to become a multi-
day destination.
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.
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