Research just out gives some indication of COVID-19’s impact on the spa industry in the US. But there’s a lack of data to show what’s happening within our sector globally
By Katie Barnes | Published in Spa Business 2021 issue 2
ISPA’s 2021 study looks at spa revenue, visits, workforce and locations / wavebreakmedia/shutterstock
The International Spa Association recently released a sneak peek of its ‘Big Five’ statistics ahead of the publication of its full 2021 US Spa Industry Study findings next month (see p38).
Conducted by PricewaterhouseCoopers (PwC), the preliminary findings give the clearest picture yet of how COVID-19 has affected businesses in the US spa sector.
Some of the statistics confirm what many expected. There was a 36.4 per cent decrease in overall spa revenues, from US$19.1bn at the end of 2019 to US$12.1bn at the end of 2020. At the same time, the number of spa visits dropped by 35.1 per cent from 192 million in 2019 to 124 million at the end of last year.
There were some surprises too. The number of spa locations only fell by 3.9 per cent, meaning by the end of 2020, there were still 21,560 spas in the US, including those temporarily closed due to the pandemic. “Many people thought these numbers would fall of the cliff,” says PwC’s global research lead, Colin McIlheney, adding that it’s “very encouraging” to see that so many businesses are still out there.
Another key finding was the marked difference between types of facilities, with day spas weathering the storm far better than resort and hotel spas. Average revenue fell by 46 per cent for resort/hotel spas compared to only 31 per cent for day spas. One in two resort/hotel spas reported a greater than 25 per cent decrease in staff, compared to one in five day spas.
These figures are valuable as they give operators a chance to take stock of how they measure up and an idea of how to adapt their businesses in the future.
However, the publication of the report highlights the lack of available industry numbers on a global scale. How do these figures compare in terms of the impact COVID-19 has had on spa businesses in Asia, for example, where anecdotal evidence suggests businesses are bouncing back quicker than in other world regions? Where’s the spa benchmarking data from industry associations and organisations in other international markets?
We want industry bodies worldwide to step up and gather and publish their numbers, so decision-makers can fully understand the impact of the pandemic on the global sector and plot successful ways forward.
Katie Barnes, editor @SpaBusinessKB
Katie Barnes is the editor of Spa Business magazine
| [email protected]
Read more from this issue of Attractions Management magazine
View contents of Attractions Management 2021 issue 2
Spa people: Adrian Zecha
Adrian Zecha talks about his latest brands and why he's not planning retirement anytime soon
Spa people: Michala Chatel
Ultima Collection's managing partner explains why and how it's adding wellness options to exclusively rented villas and properties
Spa people: Stephanie Stahl
The Ace of Air co-founder tackles sustainability head on with a 'buy the product rent the packaging' scheme
Menu engineering: At your service
Art and sauna bathing collide in a Japanese exhibition; Banyan Tree rolls out its Wellbeing Sanctuary concept globally
Top team: Capella
Neena Dhillon talks to the owning company and senior executives from this burgeoning Asian hospitality brand with a passion for wellness
Ask an Expert: Treating Long COVID
One in 20 people who've had coronavirus are still battling its side effects for three months or more. How can spas help?
Promotion: Art of Cryo: Cool night's sleep
High-performance cryo chamber specialist Art of Cryo joins forces with leading bed manufacturer Samina to launch cryo centres for sleep health
Interview: Stelian Iacob
Therme Group's COO tells Katie Barnes how it's making the traditional thermal facility model more relevant to today's consumers
First person: Yasuragi
Spas in Sweden stayed open in the pandemic, but does the nation still have an appetite for wellness? Andrew Gibson investigates at this Japanese concept spa hotel near Stockholm
Interview: Tammy Pahel
The VP of spa at Carillon Miami candidly shares some of the challenges of the past year with Lisa Starr and explains why she's investing in touchless innovations
Spa survey: Wellness time
A new consumer survey shows how people's attitudes towards wellness and spas have changed. Mindbody's Katherine Wernet
Focus on: IV nutrition therapy
Is IV nutrition therapy as credible as some spas claim? Lisa Starr investigates this increasingly popular treatment
An opportunity to reimagine one of the UK’s most recognisable towers has been formally
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Research just out gives some indication of COVID-19’s impact on the spa industry in the US. But there’s a lack of data to show what’s happening within our sector globally
By Katie Barnes | Published in Spa Business 2021 issue 2
ISPA’s 2021 study looks at spa revenue, visits, workforce and locations / wavebreakmedia/shutterstock
The International Spa Association recently released a sneak peek of its ‘Big Five’ statistics ahead of the publication of its full 2021 US Spa Industry Study findings next month (see p38).
Conducted by PricewaterhouseCoopers (PwC), the preliminary findings give the clearest picture yet of how COVID-19 has affected businesses in the US spa sector.
Some of the statistics confirm what many expected. There was a 36.4 per cent decrease in overall spa revenues, from US$19.1bn at the end of 2019 to US$12.1bn at the end of 2020. At the same time, the number of spa visits dropped by 35.1 per cent from 192 million in 2019 to 124 million at the end of last year.
There were some surprises too. The number of spa locations only fell by 3.9 per cent, meaning by the end of 2020, there were still 21,560 spas in the US, including those temporarily closed due to the pandemic. “Many people thought these numbers would fall of the cliff,” says PwC’s global research lead, Colin McIlheney, adding that it’s “very encouraging” to see that so many businesses are still out there.
Another key finding was the marked difference between types of facilities, with day spas weathering the storm far better than resort and hotel spas. Average revenue fell by 46 per cent for resort/hotel spas compared to only 31 per cent for day spas. One in two resort/hotel spas reported a greater than 25 per cent decrease in staff, compared to one in five day spas.
These figures are valuable as they give operators a chance to take stock of how they measure up and an idea of how to adapt their businesses in the future.
However, the publication of the report highlights the lack of available industry numbers on a global scale. How do these figures compare in terms of the impact COVID-19 has had on spa businesses in Asia, for example, where anecdotal evidence suggests businesses are bouncing back quicker than in other world regions? Where’s the spa benchmarking data from industry associations and organisations in other international markets?
We want industry bodies worldwide to step up and gather and publish their numbers, so decision-makers can fully understand the impact of the pandemic on the global sector and plot successful ways forward.
Katie Barnes, editor @SpaBusinessKB
Katie Barnes is the editor of Spa Business magazine
| [email protected]
Read more from this issue of Attractions Management magazine
View contents of Attractions Management 2021 issue 2
Spa people: Adrian Zecha
Adrian Zecha talks about his latest brands and why he's not planning retirement anytime soon
Spa people: Michala Chatel
Ultima Collection's managing partner explains why and how it's adding wellness options to exclusively rented villas and properties
Spa people: Stephanie Stahl
The Ace of Air co-founder tackles sustainability head on with a 'buy the product rent the packaging' scheme
Menu engineering: At your service
Art and sauna bathing collide in a Japanese exhibition; Banyan Tree rolls out its Wellbeing Sanctuary concept globally
Top team: Capella
Neena Dhillon talks to the owning company and senior executives from this burgeoning Asian hospitality brand with a passion for wellness
Ask an Expert: Treating Long COVID
One in 20 people who've had coronavirus are still battling its side effects for three months or more. How can spas help?
Promotion: Art of Cryo: Cool night's sleep
High-performance cryo chamber specialist Art of Cryo joins forces with leading bed manufacturer Samina to launch cryo centres for sleep health
Interview: Stelian Iacob
Therme Group's COO tells Katie Barnes how it's making the traditional thermal facility model more relevant to today's consumers
First person: Yasuragi
Spas in Sweden stayed open in the pandemic, but does the nation still have an appetite for wellness? Andrew Gibson investigates at this Japanese concept spa hotel near Stockholm
Interview: Tammy Pahel
The VP of spa at Carillon Miami candidly shares some of the challenges of the past year with Lisa Starr and explains why she's investing in touchless innovations
Spa survey: Wellness time
A new consumer survey shows how people's attitudes towards wellness and spas have changed. Mindbody's Katherine Wernet
Focus on: IV nutrition therapy
Is IV nutrition therapy as credible as some spas claim? Lisa Starr investigates this increasingly popular treatment
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.
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