2019 US Spa Industry Study 2019 US Spa Industry Study | Page 24

Profitability: Recent Trends
When asked about their more recent experience in the six months prior to the survey
(September 2018 to March 2019), almost one in two spas (45%) said that profitability had
improved compared to the same period one year previously. Fewer than one in 10 (8%)
said profitability was on a decreasing trend, giving a net positive balance in favor of an
increasing trend of 37% (the difference between spas reporting an increase and those
reporting a decrease).
The positive net balance in profitability was apparent across the different spa industry sectors.
The proportion reporting increased profitability over the six months September 2018 to March
2019 ranged from 40% in the day spa sector to 65% among resort/hotel spas. Relatively few spas
said that profitability had fallen in the six-month period; 8% of day spas and 14% of resort/hotel
spas.
Compared to previous years, while the proportion of spas reporting increased profitability dropped
in the 2019 survey, from 54% in 2018 to 45%, so too did the share of spas saying profitability was
reducing (from 17% to 8%). Hence, the net balance for the six months ending March 2019
(+37%) was almost unchanged compared to the period ending March 2018 (+36%).
Profitability by spa type
Experienced in past six months (Sept 2018 to March 2019)
All -8
Day -8
Resort/Hotel
24
Introduction
20
Increased
No change
35
40
60
80
Profitability trend
100
71
62
19
Decreased
21
58
0
55
49
52
65
-7
-20
47
40
-14
Other
80
70
60
50
% 40
30
20
10
0
45
59
57
16
17
58
17
17
54
15
45
17
Increased
8
Decreased
Net balance
Industry Size:
Performing Strongly
Spa Services
and Facilities
Spa Industry
Profile
Technical Appendix
Page 23