SNAPSHOT SURVEY
BY JOSH CORMAN
QUARTERLY PERFORMANCE l l l KEY TAKEAWAYS
THOUGH MANY OPEN SPAS are still operating at a reduced occupancy level , it appears that both revenues and profits saw some improvement during the opening quarter of 2021 . In the third quarter of 2020 , only 14 percent of spas reported an increase in revenues compared to the year before , and only 29 percent of spas reported a relative increase in profits . But in the first quarter of 2021 , 29 percent of spas reported a year-over-year increase in revenue , and 57 percent reported a profit increase .
The context of these figures is important , of course . Many spas began temporary closures due to the COVID-19 pandemic in March of 2020 , which means that spas ’ year- over-year performance gains must be considered in that light . Still , seeing so many spas report gains in revenue and profit suggests that some spas may have become more effective
IMPROVEMENT IN PROFITS AND REVENUES
ALL SPAS Q3 2020 VS . Q3 2019
14 %
REVENUE
29 %
PROFIT
THIS MONTH , RESPONDENTS were asked to rate the difficulty of filling
ALL SPAS Q1 2021 VS . Q1 2020
29 %
REVENUE
qualified service provider positions now compared to before the pandemic , and the results don ’ t signal good news for any spa in need of massage therapists , estheticians or nail technicians .
Two-thirds of spas said that it is “ more difficult ” or “ significantly more difficult ”
57 %
PROFIT at operating under pandemic-related restrictions , while others may be benefitting from a reduction in those types of restrictions . Remaining Snapshot Surveys in 2021 will continue to shed light on the degree to which spas rebound financially from the low points of 2020 , when about 86 percent of all spas reported a drop in year-over-year revenues .
For their part , resource partner respondents also saw ( relatively moderate ) gains in both year-over-year revenues and profits . Nearly half ( 49 percent ) of all resource partners recorded an increase in revenue compared to the first quarter of 2020 , and more than half ( 54 percent ) reported a profit increase . It ’ s likely that these figures will continue to increase as spas continue to shed restrictions and return toward full-scale operations and more normal purchasing patterns .
RESOURCE PARTNERS Q1 2021 VS . Q1 2020
49 %
REVENUE
54 %
PROFIT
HIRING HARDSHIP
to find qualified massage therapists today than prior to the pandemic , while 45 percent said the same about estheticians . More than half ( 55 percent ) said that finding nail technicians was more or significantly more difficult .
These numbers are hardly surprising given the spa industry ’ s well documented talent shortage and the
2021 will continue to shed light on the degree to which spas rebound financially from the low point of 2020 , when about 86 percent of all spas reported a drop in year-over-year revenues .
hesitancy that some non-vaccinated spa professionals may still feel about returning to work . Nonetheless , it is interesting
to consider the ways in which the pandemic has made existing challenges even more difficult to navigate , and whether the industry ’ s recovery in 2021 will include a return to something resembling pre-pandemic hiring conditions .
58 PULSE ■ JUNE 2021