2017 ISPA U.S. Spa Industry Study Executive Summary | Page 2

EXECUTIVE SUMMARY
ISPA
2017
U.S. Spa Industry Study
The total number of visits to spa establishments is estimated to have increased from 179 million in 2015 to 184
million in 2016, rising above 180 million for the first time over the 18 years that the Industry Study has been
undertaken and taking visits to a record level.
The average revenue per spa visit in 2016 is estimated at $91.3, representing a modest 0.6% uplift on the 2016
average ($90.7).
Total employment is estimated to have risen to 365,200 as of May 2017, a rise of 5,900 (+1.6%) compared to the
same period in 2016 (359,300).
The number of full-time employees increased from 162,000 in May 2016 to 165,800 in May 2017, a net increase of
3,800 (+2.3%). The part-time employee count rose at a faster pace (+4.1%), with a net increase of 6,700 new hires
bringing the part-time component of the spa workforce up from 157,800 in May 2016 to 164,500 in May 2017. In
recent years, the part-time workforce has tended to grow more quickly than full-time resulting in the number of
part-time workers being almost equal to the number of full-time employees in May 2017.
The number of independent contractor positions is estimated to have declined over the period from May 2016
to May 2017, from 39,500 to 35,000 (-11.4%). The reduction in the share of employment filled by independent
contractors reflects an ongoing trend, evident since 2010.
Profitability
Perhaps reflecting the slower pace of revenue growth, the profitability performance of spas was more muted in
2016 compared with 2015. Excluding the resort/hotel sector, 64% of spas reported a 2016 profit percentage in
excess of 10%, a reduction compared to the 2015 out-turn when 76% reported profits of 10% or more. There was a
corresponding increase in the proportion of spas with a more modest profit performance, in the 0% to 9% range, up
from 19% of spas in 2015 to 29% in 2016.
Profitability levels remained broadly stable in the resort/hotel sector. Almost one in two resort/hotel spas (47%)
reported a spa profit percentage in excess of 20% for 2016 with a further 35% saying the profit percentage was in
the 10-19% range. Over four in five resort/hotel spas (82%) reported a profit percentage of 10% or more, slightly up
from 76% in 2015.
Promoting the spa experience
Reflecting on the growing importance of an online presence, over four in five spas (83%) said they offered social
media promotions in 2016 while 62% said they offered an online option to book treatments. The importance of
partnerships with retail product vendors was also evident, with 63% of spas saying they offered promotional events
with a retail partner in 2016. Spa offerings in 2016 also included loyalty programs (56%), spa memberships (49%),
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