2019 US Spa Industry Study 2019 US Spa Industry Study | Page 43

Gift Card Revenues Over nine in 10 spas (91%) said they sell gift cards, ranging from 95% of day spas to 91% of resort/hotel spas and 61% of the other spa category. Among those spas, gift-card sales averaged $85,200, representing 10% of their total revenues in 2018. That equates to an industry-wide total of $1.69 billion, accounting for 9% of total spa industry revenue. Among the 91% of spas offering gift cards, the average gift card revenue per spa is estimated to vary from $72,600 in the combined other spa category to $82,200 in the day spa sector to $124,100 among resort/hotel spas. Focusing on those spas that offer gift cards, the revenues generated from gift card sales accounted for 10% of total revenues, on average, ranging from an average of 11% among day spas to 7% in the resort/hotel sector. At the overall industry level, the grossed-up revenues from gift card sales are estimated to contribute 9% to total spa industry revenue. That proportion also varies by type of spa, being highest in the day spa sector (11%). All Day Resort/ Hotel Other Yes 91% 95% 91% 61% No 9% 5% 9% 39% $85,200 $82,200 $124,100 $72,600 $1.69 $1.36 $0.22 $0.11 Spas offering gift cards 10% 11% 7% 10% Total spa industry revenue 9% 11% 6% 6% Gift cards sold in the spa Gift Card Revenues Average per spa offering gift cards Total industry gift card revenues ($ billion) Percent of revenue Introduction Industry Size: Performing Strongly Spa Services and Facilities Spa Industry Profile Technical Appendix Page 42