When those same survey respondents were asked why they wanted to travel , their top responses , according to Donaldson , were “ to escape and relax , to do new things , and to visit places they have been before . Those are all things that especially resort / hotel spas can cater to very strongly .”
Thankfully , increasing travel is not the only sign of a potentially strong recovery for spas in 2021 and beyond . In PwC ’ s annual global survey of CEOs , a record share of respondents
reported that they believe that economic growth will improve . And while Donaldson admits that the dire economic conditions so many businesses faced in 2020 makes betting on growth a safe wager , having the people leading those businesses overwhelmingly assert that better days are ahead can only be taken as a positive .
CEOs aren ’ t the only ones feeling optimistic . Consumer confidence is rising as well , with the Conference
Board ’ s Consumer Confidence Index recently reaching its highest point since February 2020 — the eve of the pandemic . Donaldson credits a few different things with these rising confidence levels : the continued COVID-19 vaccine rollout , the rising desire for a return to traveling and the elevated level of disposable income available to consumers . The last item in that list may cause some confusion , given the number of furloughs and job losses that occurred in 2020 . But financial assistance from COVID-19 relief legislation put a substantial amount of cash in consumers ’ pockets , including , in many cases , the pockets of those who had been able to remain in their jobs and , therefore , maintain their income .
Recovery Déjà Vu ?
No matter their respective causes , the economic effects of the great recession and the COVID-19 pandemic on the spa industry are relatively similar . So what does that mean for the industry ’ s recovery from the downturn ? As with many aspects of the pandemic , thinking has evolved on that question , said Donaldson : “ The overriding view [ at the start of the pandemic ] was that we would probably see a V- shaped recovery . There would be this short , sharp contraction , but things would very quickly return to normal , and life would continue as it was before the pandemic . It has turned out to be a little bit of a naïve way of looking at this .” Obviously , that quick bounce-back hasn ’ t materialized , as spas and much of the economy in general have operated under significant restrictions for large portions of the last year or more .
Another possibility is a U-shaped recovery , which happens when the economy improves , but does so slowly as conditions change . The recovery from the great recession was U-shaped , and at one point , many
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