Pulse July 2021 | Page 18

“ The great recession was a different illness with the same symptoms . 2008 to 2009 was problematic because of a fall in demand . Fewer people had disposable income to spend on ‘ luxuries ’ like spa-going , so demand fell and the industry suffered . This time , it ’ s more a crisis of supply . It was the enforced closures and concerns about public health that were stopping people from visiting .”
found in those very same figures . Spa revenue per guest visit remained relatively stable , falling only slightly — from $ 99.5 USD to $ 97.5 USD . This suggests that occupancy restrictions and closures had far more to do with lost revenues in 2020 than a lack of

“ The great recession was a different illness with the same symptoms . 2008 to 2009 was problematic because of a fall in demand . Fewer people had disposable income to spend on ‘ luxuries ’ like spa-going , so demand fell and the industry suffered . This time , it ’ s more a crisis of supply . It was the enforced closures and concerns about public health that were stopping people from visiting .”

— Russell Donaldson , PwC spending power or demand on the power of spa-goers .
Beyond the Big Five , there are plenty of other figures that suggest better days are on the horizon for the spa industry . Chief among those are some recent statistics regarding travel in the U . S . According to the Bureau of Transportation , the number of air passengers in the U . S . fell 62 percent in 2020 ( domestic travel was down 59 percent and international travel down 74 percent during that time ). Obviously , that kind of reduction in travel had a greater effect on resort / hotel spas , which draw significant business from traveling guests who are staying on the property . But as Donaldson revealed , the Transportation Safety Authority has
reported that U . S . airports are seeing about two-thirds ( 65 percent ) as much throughput ( meaning the total number of people arriving from and departing for flights ) as at the same point in 2019 . “ That ’ s a big recovery already ,” Donaldson noted .“ When you think of flying in Europe and Canada , we ’ re only seeing about 20 to 30 percent throughput when it comes to air travel . Consumer confidence in travel does seem to be increasing also — 88 percent of a recent survey of U . S . -based respondents said that they are keen to travel this year and quite a high proportion of those within the next three months .” This increase in travel is a good sign for the industry , as are the stated reasons most people have for traveling to begin with .
16 PULSE JULY 2021