2019 US Spa Industry Study 2019 US Spa Industry Study | Page 22

Profitability
In the resort/hotel sector, six in 10 spas (60%) said their spa profit percentage was 20% or
more, up from 47% in 2017. The profitability performance of spas in other sectors also
showed an improvement in 2018. Excluding the resort/hotel sector, 75% of spas reported a
2018 profit percentage before fixed charges of 10% or more, up from 70% in 2017. Only 3%
reported a net loss in 2018.
Since many resort/hotel spas are part of a larger enterprise, survey respondents in the resort/hotel
sector were asked to give their approximate spa profit percentage for the spa operation only and not
the entire business. All other types of spa establishments were asked to give the approximate spa
profit before fixed charges percentage.
Within the resort/hotel sector, six in 10 spas (60%) reported a spa profit percentage in excess of 20%
for 2018, up from 47% in 2017. In total, 35% of resort/hotel spas reported a profit percentage in the
range 0-19%, down from 48% in 2017.
Excluding the resort/hotel sector, 75% of spas reported a 2018 profit percentage of 10% or more, an
increase compared to the 2017 out-turn, when 70% reported profits of 10% or more. There was a
corresponding decrease in the proportion of spas with a more modest profit performance, in the range
0% to 9%, down from 25% in 2017 to 21% in 2018.
Spa profit percentage - resort/hotel spas
70
60
60
50
40
30
20
23 24
12
10
0
21 23
30 32
26
19
8 8
5 6 5 5 5 6
Net loss
13
19
28
30
22
29
35
34 36
29
43 41 45
2013
2014
2015
2016
2017
0-9%
10-19%
2018
20%+
Profit percentage before fixed charges - all spas (excl. resort/hotel)
80
73
70
60
50
40
30
20
40
27
19 18
10
0
12 13
Introduction
47
34
28 27 30
29
20 19
54
61
76
64
57
70
75
Industry Size:
Performing Strongly
2010
2012
2013
34
25
2009
2011
2014
21
2015
2016
7 5 7 4
3
Net loss
2011
2012
48 47 47
20
15
2010
2017
0-9%
Spa Services
and Facilities
2018
10%+
Spa Industry
Profile
Technical Appendix
Page 21