2019 US Spa Industry Study 2019 US Spa Industry Study | Page 26

Key Points Summary
The industry in 2018: Solid growth
Now into its ninth successive year of expansion, the spa industry posted a solid growth
performance in 2018.
Total spa revenues for 2018 are estimated at $18.3 billion, an increase of $0.8 billion (+4.7%)
on total revenue in 2017 ($17.5 billion). Spa industry revenues have now passed the $18
billion threshold and, with average revenue per spa establishment reaching $826,000, the
2018 out-turn represents a further positive step forward for the industry.
In 2018, spa openings out-paced spa closures by a margin of 400, bringing the number of
spa locations to a record level of 22,160, representing a 1.8% increase on the 2017 position
(21,770 locations).
The total number of visits to spa establishments is estimated to have risen from 187 million in
2017 to 190 million in 2018 (+1.6%).
Average spend per visit has also been rising, with the average revenue per visit in 2018
estimated at $96.5, a 3% increase on 2017 ($93.7).
The number of jobs in the spa industry has continued on an upward path. Total employment
is estimated to have risen to 377,900 as of May 2019, a rise of 5,800 (+1.6%) compared to
the same period in 2018 (372,100).
The number of full-time employees is estimated to have risen from 170,900 in 2018 to
172,000 in 2019, a net increase of 1,100 (+0.6%). The part-time employee count is
estimated to have risen at a faster pace (+2.6%), with new hires adding 4,600 part-time jobs
to the spa workforce.
The number of independent contractor positions is estimated to have risen slightly, from
27,300 in May 2018 to 27,400 by May 2019. The estimated stability in the number of
independent contractor positions can be contrasted with the historical trend, from 2007
onwards, of a steadily reducing number of such workers. As with any survey, there is a
degree of uncertainty around the estimates and further data points will be required to identify
whether the 2019 result signals a reversal of the historic trend that will be sustained into the
future.
Profitability
The industry’s solid growth performance has underpinned improving 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, with 75% reporting a 2018 profit percentage before fixed charges of
10% or more, up from 70% in 2017.
Introduction
Industry Size:
Performing
Strongly
Spa Services
and Facilities
Spa Industry
Profile
Technical Appendix
Page 25