The US has seen increases in spa revenues, visits, locations, and employment / shutterstock
The spa industry in the US has been boosted by another year of healthy growth, according to the International Spa Association’s 2018 US Spa Industry Study, which was carried out in collaboration with PricewaterhouseCoopers (PwC) and funded by the ISPA Foundation.
The research is a nationwide overview of the US spa industry’s size and performance, and looks at data from 2017 through to May 2018.
The report is the result of a large-scale survey of spa operators across the United States. Respondents provided key metrics for 2,375 spa locations, and this year’s estimates show a sector that continues to grow.
Against a nationwide backdrop of higher GDP and employment numbers, there are increases in spa revenues, visits, number of locations and employment within the spa industry, marking the eighth year of positive growth since the financial downturn of the late 2000s.
The big five Each of the ‘big five’ statistics increased in 2017, reinforcing the industry’s growth (see Table 1). Total spa revenue is estimated to have reached US$17.5bn in 2017 – another all-time record figure for the industry. With the wider US economy growing more rapidly in 2017 (up 2.3 per cent compared to 1.5 per cent in 2016), the spa arena reflects this trend, with growth picking up from 3.1 per cent in 2016 to 4.3 per cent in 2017.
The last year has also seen a more modest rise in total visits, to 187 million (+1.6 per cent) – the equivalent of over 511,000 people visiting US spas each day. Bringing the revenue and visits data together means that revenue-per-visit rose healthily in 2017, up 2.7 per cent to US$93.70 (€80.20, £71.50).
With overall employment in the US economy rising by 1.6 per cent in 2017, the number of people working in the US spa industry has reached an all-time high, increasing for the second consecutive year to 372,100 (+1.9 per cent). By a wafer-thin margin, part-time employees are now more numerous than full-time staff. The total number of part-time workers grew to 173,900 in 2017 (+5.7 per cent), compared to a more modest growth in the number employed full-time (170,900, +3.1 per cent). Backing up a long-standing industry trend, this year’s results show a further fall in the number of contractors to 27,300 (-22 per cent); this group now represents fewer than one in 10 of the workforce.
Spa locations in the US are now at an all-time record high. Growth of 2.4 per cent in 2017 means that the 21,770 establishments surpasses the previous high of 21,300 recorded in 2008, just before the recession. The net increase of 510 spa locations in 2017 equates to just shy of 10 new spas opening every week.
Looking ahead Spas are continuing to use a variety of methods and techniques to ensure they remain well-positioned for further growth. Their use of modern communication channels continues to come to the forefront, with over three quarters (78 per cent) reporting that they offered social media promotions in 2017 and almost a third (32 per cent) offering special promotions to consumers who gave their spa a positive mention on social media or review sites. In addition, 77 per cent said they offered their clients electronic appointment reminders.
To keep themselves current, spas are actively refreshing their offering, with 60 per cent reporting that they are planning to offer new treatments in 2018 and 45 per cent planning to add new product lines. A recent trend is the continued rise of male spa goers, and in accordance, 41 per cent of spas are actively targeting this key growing segment with special promotions.
Spas are also making behind-the-scenes advancements to strengthen the business, with 59 per cent planning to adopt new or revised standard operating procedures in the next year and 54 per cent seeking to provide employees with new training opportunities. This is a very positive trend as ISPA’s new Spa Workforce Study (see SB18/2 p44) shows that therapists and managers are great advocates for the industry – especially when they have a positive working environment.
The big 5 statistics
out-turn and percentage change in 2017
About the research
The ISPA 2018 US Spa Industry Study, prepared by PricewaterhouseCoopers (PwC) and funded by the ISPA Foundation,
focuses on financial performance, growth and employment, as well as ownership structures, product and service offerings, future trends and emerging issues.
ISPA members may download a free copy of the latest report at experienceispa.com, and non-members can purchase it through the site.
Based in the US, ISPA represents operators and suppliers in more than 60 countries covering all aspects of the global spa industry.
About the author:
Colin McIlheney
Colin McIlheney is global research director at PwC.
The US has seen increases in spa revenues, visits, locations, and employment / shutterstock
The spa industry in the US has been boosted by another year of healthy growth, according to the International Spa Association’s 2018 US Spa Industry Study, which was carried out in collaboration with PricewaterhouseCoopers (PwC) and funded by the ISPA Foundation.
The research is a nationwide overview of the US spa industry’s size and performance, and looks at data from 2017 through to May 2018.
The report is the result of a large-scale survey of spa operators across the United States. Respondents provided key metrics for 2,375 spa locations, and this year’s estimates show a sector that continues to grow.
Against a nationwide backdrop of higher GDP and employment numbers, there are increases in spa revenues, visits, number of locations and employment within the spa industry, marking the eighth year of positive growth since the financial downturn of the late 2000s.
The big five Each of the ‘big five’ statistics increased in 2017, reinforcing the industry’s growth (see Table 1). Total spa revenue is estimated to have reached US$17.5bn in 2017 – another all-time record figure for the industry. With the wider US economy growing more rapidly in 2017 (up 2.3 per cent compared to 1.5 per cent in 2016), the spa arena reflects this trend, with growth picking up from 3.1 per cent in 2016 to 4.3 per cent in 2017.
The last year has also seen a more modest rise in total visits, to 187 million (+1.6 per cent) – the equivalent of over 511,000 people visiting US spas each day. Bringing the revenue and visits data together means that revenue-per-visit rose healthily in 2017, up 2.7 per cent to US$93.70 (€80.20, £71.50).
With overall employment in the US economy rising by 1.6 per cent in 2017, the number of people working in the US spa industry has reached an all-time high, increasing for the second consecutive year to 372,100 (+1.9 per cent). By a wafer-thin margin, part-time employees are now more numerous than full-time staff. The total number of part-time workers grew to 173,900 in 2017 (+5.7 per cent), compared to a more modest growth in the number employed full-time (170,900, +3.1 per cent). Backing up a long-standing industry trend, this year’s results show a further fall in the number of contractors to 27,300 (-22 per cent); this group now represents fewer than one in 10 of the workforce.
Spa locations in the US are now at an all-time record high. Growth of 2.4 per cent in 2017 means that the 21,770 establishments surpasses the previous high of 21,300 recorded in 2008, just before the recession. The net increase of 510 spa locations in 2017 equates to just shy of 10 new spas opening every week.
Looking ahead Spas are continuing to use a variety of methods and techniques to ensure they remain well-positioned for further growth. Their use of modern communication channels continues to come to the forefront, with over three quarters (78 per cent) reporting that they offered social media promotions in 2017 and almost a third (32 per cent) offering special promotions to consumers who gave their spa a positive mention on social media or review sites. In addition, 77 per cent said they offered their clients electronic appointment reminders.
To keep themselves current, spas are actively refreshing their offering, with 60 per cent reporting that they are planning to offer new treatments in 2018 and 45 per cent planning to add new product lines. A recent trend is the continued rise of male spa goers, and in accordance, 41 per cent of spas are actively targeting this key growing segment with special promotions.
Spas are also making behind-the-scenes advancements to strengthen the business, with 59 per cent planning to adopt new or revised standard operating procedures in the next year and 54 per cent seeking to provide employees with new training opportunities. This is a very positive trend as ISPA’s new Spa Workforce Study (see SB18/2 p44) shows that therapists and managers are great advocates for the industry – especially when they have a positive working environment.
The big 5 statistics
out-turn and percentage change in 2017
About the research
The ISPA 2018 US Spa Industry Study, prepared by PricewaterhouseCoopers (PwC) and funded by the ISPA Foundation,
focuses on financial performance, growth and employment, as well as ownership structures, product and service offerings, future trends and emerging issues.
ISPA members may download a free copy of the latest report at experienceispa.com, and non-members can purchase it through the site.
Based in the US, ISPA represents operators and suppliers in more than 60 countries covering all aspects of the global spa industry.
About the author:
Colin McIlheney
Colin McIlheney is global research director at PwC.
OMA has completed a major transformation of New York's New Museum, creating a larger
cultural campus that combines expanded exhibition spaces with learning, performance,
hospitality and public programming.
A US$50 million (£44.2 million, €51.2 million) transformation of Chicago's historic McCormick
Mansion has created a new destination that combines live magic, immersive theatre, dining and
private membership under one roof.
The Montana Historical Society has officially celebrated the opening of its new Montana
Heritage
Center, a US$107 million (£79 million, €92 million) destination that combines immersive
storytelling with cutting-edge audiovisual technology to bring the sta
San Antonio Zoo has reported a US$283 million economic impact for 2025, following a decade-
long transformation programme that has seen almost US$200 million invested into the Texas
attraction.
Plans for the AU$180 million redevelopment of Reef HQ Aquarium in Townsville, Australia, are
progressing, with the project set to transform the attraction into a global centre for reef
education and conservation.
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.
