Pulse April 2021 | Page 62

SNAPSHOT SURVEY
BY JOSH CORMAN

JANUARY 2021 QUARTERLY PERFORMANCE l l l KEY TAKEAWAYS

DATA FROM THE JANUARY SNAPSHOT SURVEY
REVEALS the extent to which spa revenues and profits continued to be dragged down in the final three months of 2020 . While nearly one in five spas ( 19 percent ) reported an increase in revenue during that period , more than two-thirds indicated that their revenues were down year-over-year by at least 20 percent , with more than a quarter noting a drop of over 50 percent .
Profits fared noticeably better than revenues when compared yearover-year , likely due to the cost-cutting measures many spas have taken during the pandemic . Nearly a third ( 29 percent ) of spa respondents recorded a profit in the fourth quarter of 2020 , while 60 percent indicated a year-over-year drop of at least 10 percent .
Improving upon these figures throughout 2021 will no doubt be the aim of every spa leader reading these words . But until the number of spa visits , which were down 81 percent from the fourth quarter of the previous year , are able to return to something resembling 2019 levels , those leaders will have to continue their creative responses to the limitations imposed by the pandemic .
60 % INDICATED A YEAR-OVER-YEAR PROFIT DROP OF AT LEAST 10 %
“ Improving upon these figures throughout 2021 will no doubt be the aim of every spa leader reading these words .”
45 %
Added a new treatment to menu
42 %
Reduced number of treatments to menu
27 %
Added a new brand or product line to retail
33 %
Invested in new marketing or promotional campaign

What ’ s New ?

THE QUESTION OF HOW TO HANDLE TREAT- MENT MENUS has been on the minds of spa directors since the earliest days of the pandemic , and respondents to
January ’ s survey reveal some divergent thinking within the
industry . Forty-five percent of respondents noted that they had
added a new treatment to their spa menu , while almost exactly
that number ( 42 percent ) reduced the number of treatment
options on the menu . To streamline or not to streamline ?
That , apparently , is the question .
More than a quarter of respondents ( 27 percent ) said they
had added a new brand or product line to their spa ’ s retail
lineup , and exactly one-third invested in a marketing or promotional
campaign , suggesting that , when they are able , spas
continue to seek ways to freshen things up as they enter 2021 .
60 PULSE ■ APRIL 2021