Massage franchise businesses in the US have permanently changed the spa industry, drawing new types of consumers to the wellness lifestyle and accelerating the growth of the sector.
The model has scaled incredibly quickly to the point where market leader Massage Envy topped the US$1bn turnover mark last year and will have more than 1,000 spas by the end of 2014, making it a substantial business by any measure.
No-one has yet estimated the value or volume of the crossover business, ie, people who are introduced to the industry via a franchise and go on to become customers of full-service spas and vice versa. There’s a need for these numbers to be established now and more importantly, to be tracked given the rapid growth being experienced.
The franchise industry is a highly entrepreneurial one and investors have been quick to see the potential of the sector. New entrants in the US such as Massage Green Spa, Hand and Stone, Massage Luxe and others are growing quickly and investors right across the international markets starting to see the potential too.
Massage is a neighbourhood purchase, with people typically prepared to travel a 20-30 minutes for a treatment. This makes it very like the health club model in scale, while the pricing being adopted by massage and facial franchises is also similar to that deployed by volume health club operators. As a result, it seems likely the spa franchise market will turn out to be a similar shape to the health club sector by the time it reaches maturity.
On page 34, our experts examine the impact that franchises are having on the wider spa market. The debate centres around quality control, market fatigue and staffing – are there enough customers to support this many sites and enough therapists to deliver the volume?
But the biggest question is whether these businesses can be sustained without impacting full-service spas. Will they suck the life out of the full-service sector and what kind of shape will the industry be in once they’ve scaled?
In the health club industry, where budget offers have proliferated, they’re starting to bed down to co-exist in a sustainable way with the high end operations, but have knocked the stuffing out of the mid-market. Time will tell whether the same thing happens with spas.
Whatever the outcome, spa operators worldwide need to prepare for this change with eyes wide open.
Read more from this issue of Attractions Management magazine
View contents of Attractions Management 2014 issue 2
Letters: Letters
Why don't more spas participate in benchmarking schemes?
Interview: Andrew Gibson
The new VP of spa and wellness at FRHI tells Katie Barnes about his plans for spas in the Fairmont, Raffles and Swissôtel hotel chains
First person: Braving the Banya
Jak Phillips gets whacked with birch branches and endures two hours in an 80?C sauna – all in the name of wellness
Hotel spa: Green house
The family behind Ecover cleaning products invests in an idyllic hotel and spa set in the English countryside
Focus on: Gut restoration
The complex nervous system in our stomach is known as the second brain due to the impact it can have on everything from our mood to immunity. Julie Cramer investigates
Celebrity spa: Mane attraction
A passion for horses, wellness and business underpin the new US Salamander Resort & Spa that's owned by filmmaker Sheila C Johnson
Spa software: Operator case studies – part 2
Spa managers tell Kate Corney how they're using software to improve the performance of their businesses – from streamlining operations to keeping on top of revenue reports
Product focus: Private label
What companies offer white label skincare and products? And how can own-brand ranges benefit spas? Kate Corney finds out
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...]
Massage franchise businesses in the US have permanently changed the spa industry, drawing new types of consumers to the wellness lifestyle and accelerating the growth of the sector.
The model has scaled incredibly quickly to the point where market leader Massage Envy topped the US$1bn turnover mark last year and will have more than 1,000 spas by the end of 2014, making it a substantial business by any measure.
No-one has yet estimated the value or volume of the crossover business, ie, people who are introduced to the industry via a franchise and go on to become customers of full-service spas and vice versa. There’s a need for these numbers to be established now and more importantly, to be tracked given the rapid growth being experienced.
The franchise industry is a highly entrepreneurial one and investors have been quick to see the potential of the sector. New entrants in the US such as Massage Green Spa, Hand and Stone, Massage Luxe and others are growing quickly and investors right across the international markets starting to see the potential too.
Massage is a neighbourhood purchase, with people typically prepared to travel a 20-30 minutes for a treatment. This makes it very like the health club model in scale, while the pricing being adopted by massage and facial franchises is also similar to that deployed by volume health club operators. As a result, it seems likely the spa franchise market will turn out to be a similar shape to the health club sector by the time it reaches maturity.
On page 34, our experts examine the impact that franchises are having on the wider spa market. The debate centres around quality control, market fatigue and staffing – are there enough customers to support this many sites and enough therapists to deliver the volume?
But the biggest question is whether these businesses can be sustained without impacting full-service spas. Will they suck the life out of the full-service sector and what kind of shape will the industry be in once they’ve scaled?
In the health club industry, where budget offers have proliferated, they’re starting to bed down to co-exist in a sustainable way with the high end operations, but have knocked the stuffing out of the mid-market. Time will tell whether the same thing happens with spas.
Whatever the outcome, spa operators worldwide need to prepare for this change with eyes wide open.
Read more from this issue of Attractions Management magazine
View contents of Attractions Management 2014 issue 2
Letters: Letters
Why don't more spas participate in benchmarking schemes?
Interview: Andrew Gibson
The new VP of spa and wellness at FRHI tells Katie Barnes about his plans for spas in the Fairmont, Raffles and Swissôtel hotel chains
First person: Braving the Banya
Jak Phillips gets whacked with birch branches and endures two hours in an 80?C sauna – all in the name of wellness
Hotel spa: Green house
The family behind Ecover cleaning products invests in an idyllic hotel and spa set in the English countryside
Focus on: Gut restoration
The complex nervous system in our stomach is known as the second brain due to the impact it can have on everything from our mood to immunity. Julie Cramer investigates
Celebrity spa: Mane attraction
A passion for horses, wellness and business underpin the new US Salamander Resort & Spa that's owned by filmmaker Sheila C Johnson
Spa software: Operator case studies – part 2
Spa managers tell Kate Corney how they're using software to improve the performance of their businesses – from streamlining operations to keeping on top of revenue reports
Product focus: Private label
What companies offer white label skincare and products? And how can own-brand ranges benefit spas? Kate Corney finds out
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.
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.
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COMPANY PROFILES
RMA Ltd RMA Ltd is a one-stop global company
that can design, build and produce from a
greenfield site upw [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...]
