ASK THE EXPERT
COLIN McILHENEY
According to the International SPA Association ( ISPA ) 2012 U . S . Spa Industry Study , the spa industry is on a road to recovery . Along with positive numbers from the study , confidence levels among spa operators in terms of increased revenues in the next six months have also been at an overwhelming 78 percent .
Pulse looks deeper into the data with ISPA Research Advisor and PricewaterhouseCoopers ’ Global Research Director Colin McIlheney .
I SPA 2 0 1 2 U . S . SPA I N D U STRY STU D Y
Flip to page 42 to see Pulse ’ s infographic of key data from the ISPA 2012 U . S . Spa Industry Study .
1 .
What is the focus of the ISPA 2012 U . S . Spa Industry Study ?
This year ’ s study focused on the industry ’ s performance as it kept pace with a U . S . economy still in gradual emergence from the recession , and as spas adapted to an increasingly competitive marketplace where cost-conscious consumers are shopping around .
The report gauged the extent to which the industry has stabilized and experienced growth in the wake of the 2008- 2009 recession . This is measured by examining the change across five key factors : revenues , spa visits , number of locations , floor space and staffing levels .
2 .
How were the trends and challenges identified in the study ?
To gain insight into more recent and emerging trends , spas were asked about their experiences during the period of September 2011 to March 2012 . Their answers reveal that the steadily upward trajectory has continued from 2011 .
Survey questions also identified the key challenges facing spas as they regain ground and the changes operators have made to ensure they stay competitive and deliver value and professionalism to clients .
3 .
What indicators from the study point to steady progress ?
During 2011 , the spa industry continued to build on the moderate growth experienced in 2010 when business gradually picked up after the downturn and customer visits increased .
All five key performance factors for the spa industry either grew or held steady compared to their 2010 performance .
Total spa revenue for 2011 had risen to US $ 13.4 billion , a 4.5 percent increase over the 2010 level . Revenue has now surpassed the pre-recession peak of US $ 12.8 billion achieved in 2008 , an important milestone as the industry recovers .
This performance mirrors the overall recovery rate across the U . S . economy . In 2011 , total consumer spending in the U . S . on services grew by 3.7 percent ( in current dollar terms ).
4 .
What are the specific findings on the Big 5 factors ( i . e . Revenue , Spa Visits , Locations ,
Employment and Square Footage )? For the second year in a row , average revenues per spa expanded , rising by 4.9 percent in 2011 to US $ 673,000 . This increase in spa revenues is driven largely by a boost
40 PULSE ■ January / February 2013