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Massage franchise businesses in the US have permanently changed the spa industry, drawing new types of consumers to the wellness lifestyle and accelerating the growth of the sector.
The model has scaled incredibly quickly to the point where market leader Massage Envy topped the US$1bn turnover mark last year and will have more than 1,000 spas by the end of 2014, making it a substantial business by any measure.
No-one has yet estimated the value or volume of the crossover business, ie, people who are introduced to the industry via a franchise and go on to become customers of full-service spas and vice versa. There’s a need for these numbers to be established now and more importantly, to be tracked given the rapid growth being experienced.
The franchise industry is a highly entrepreneurial one and investors have been quick to see the potential of the sector. New entrants in the US such as Massage Green Spa, Hand and Stone, Massage Luxe and others are growing quickly and investors right across the international markets starting to see the potential too.
Massage is a neighbourhood purchase, with people typically prepared to travel a 20-30 minutes for a treatment. This makes it very like the health club model in scale, while the pricing being adopted by massage and facial franchises is also similar to that deployed by volume health club operators. As a result, it seems likely the spa franchise market will turn out to be a similar shape to the health club sector by the time it reaches maturity.
On page 34, our experts examine the impact that franchises are having on the wider spa market. The debate centres around quality control, market fatigue and staffing – are there enough customers to support this many sites and enough therapists to deliver the volume?
But the biggest question is whether these businesses can be sustained without impacting full-service spas. Will they suck the life out of the full-service sector and what kind of shape will the industry be in once they’ve scaled?
In the health club industry, where budget offers have proliferated, they’re starting to bed down to co-exist in a sustainable way with the high end operations, but have knocked the stuffing out of the mid-market. Time will tell whether the same thing happens with spas.
Whatever the outcome, spa operators worldwide need to prepare for this change with eyes wide open.
Read more from this issue of Spa Business magazine
Letters: Letters
Why don't more spas participate in benchmarking schemes?
Interview: Andrew Gibson
The new VP of spa and wellness at FRHI tells Katie Barnes about his plans for spas in the Fairmont, Raffles and Swissôtel hotel chains
First person: Braving the Banya
Jak Phillips gets whacked with birch branches and endures two hours in an 80?C sauna – all in the name of wellness
Hotel spa: Green house
The family behind Ecover cleaning products invests in an idyllic hotel and spa set in the English countryside
Focus on: Gut restoration
The complex nervous system in our stomach is known as the second brain due to the impact it can have on everything from our mood to immunity. Julie Cramer investigates
Celebrity spa: Mane attraction
A passion for horses, wellness and business underpin the new US Salamander Resort & Spa that's owned by filmmaker Sheila C Johnson
Spa software: Operator case studies – part 2
Spa managers tell Kate Corney how they're using software to improve the performance of their businesses – from streamlining operations to keeping on top of revenue reports
Product focus: Private label
What companies offer white label skincare and products? And how can own-brand ranges benefit spas? Kate Corney finds out
The MSpa Oslo series is a perennial bestseller in global markets. With innovative
engineering and premium performance, this completely portable spa line-up is expertly
designed to meet the needs of customers worldwide. [more...]
Contrast therapy, based on the alternation of hot and cold rituals, has become one of the
most valued practices in the fields of wellness and recovery. [more...]
+ More featured suppliers
COMPANY PROFILES
Subtle Energies
With 30 years of clinical research, Subtle Energies is widely recognised for its
authentic wellness [more...]
Massage franchise businesses in the US have permanently changed the spa industry, drawing new types of consumers to the wellness lifestyle and accelerating the growth of the sector.
The model has scaled incredibly quickly to the point where market leader Massage Envy topped the US$1bn turnover mark last year and will have more than 1,000 spas by the end of 2014, making it a substantial business by any measure.
No-one has yet estimated the value or volume of the crossover business, ie, people who are introduced to the industry via a franchise and go on to become customers of full-service spas and vice versa. There’s a need for these numbers to be established now and more importantly, to be tracked given the rapid growth being experienced.
The franchise industry is a highly entrepreneurial one and investors have been quick to see the potential of the sector. New entrants in the US such as Massage Green Spa, Hand and Stone, Massage Luxe and others are growing quickly and investors right across the international markets starting to see the potential too.
Massage is a neighbourhood purchase, with people typically prepared to travel a 20-30 minutes for a treatment. This makes it very like the health club model in scale, while the pricing being adopted by massage and facial franchises is also similar to that deployed by volume health club operators. As a result, it seems likely the spa franchise market will turn out to be a similar shape to the health club sector by the time it reaches maturity.
On page 34, our experts examine the impact that franchises are having on the wider spa market. The debate centres around quality control, market fatigue and staffing – are there enough customers to support this many sites and enough therapists to deliver the volume?
But the biggest question is whether these businesses can be sustained without impacting full-service spas. Will they suck the life out of the full-service sector and what kind of shape will the industry be in once they’ve scaled?
In the health club industry, where budget offers have proliferated, they’re starting to bed down to co-exist in a sustainable way with the high end operations, but have knocked the stuffing out of the mid-market. Time will tell whether the same thing happens with spas.
Whatever the outcome, spa operators worldwide need to prepare for this change with eyes wide open.
Read more from this issue of Spa Business magazine
Letters: Letters
Why don't more spas participate in benchmarking schemes?
Interview: Andrew Gibson
The new VP of spa and wellness at FRHI tells Katie Barnes about his plans for spas in the Fairmont, Raffles and Swissôtel hotel chains
First person: Braving the Banya
Jak Phillips gets whacked with birch branches and endures two hours in an 80?C sauna – all in the name of wellness
Hotel spa: Green house
The family behind Ecover cleaning products invests in an idyllic hotel and spa set in the English countryside
Focus on: Gut restoration
The complex nervous system in our stomach is known as the second brain due to the impact it can have on everything from our mood to immunity. Julie Cramer investigates
Celebrity spa: Mane attraction
A passion for horses, wellness and business underpin the new US Salamander Resort & Spa that's owned by filmmaker Sheila C Johnson
Spa software: Operator case studies – part 2
Spa managers tell Kate Corney how they're using software to improve the performance of their businesses – from streamlining operations to keeping on top of revenue reports
Product focus: Private label
What companies offer white label skincare and products? And how can own-brand ranges benefit spas? Kate Corney finds out
Manipulating the gut microbiome could become a powerful tool for preserving brain health and
resilience as people age, according to research led by Professor Paola Tognini, a neuroscientist
at the Sant'Anna School of Advanced Studies in Pisa, Italy.
Jessica Sloyan, a wellness operations and training expert, has established an independent
private training academy to provide professional qualifications for practitioners looking to offer
immersive wellness experiences.
The International Spa Association (ISPA) has published its full 2026 US Spa Industry Study,
providing further insights into the region’s total US$1 billion (€855 million, £780 million)
industry revenue increase from 2024 to 2025.
Ameyalli, the 78-acre wellbeing resort and residential community in Midway in Utah, US, has
broken ground on phase two of the hot spring development – the Ameyalli Resort and Spa –
which is due to open in 2028.
TLee Spas and Wellness has revealed the design concept for a high-tech spa with body
mapping scanners to improve public health, for AI company Midjourney.
Gran Hotel Taoro in northern Tenerife, Spain, has completed the final phase of its three-year
renovation with the debut of its Sandára Wellness Centre.
Hand and Stone Massage and Facial Spa, the spa business with more than 650 locations across
the US and Canada, has appointed franchise expert Carrie Walsh as CEO as the company plans
to expand.
Synergy – The Retreat Show, the global trade show for retreats, has launched a global research
initiative that will provide insights into the retreat sector from both consumer and industry
perspectives.
The Wellness Tourism Association (WTA) has published a non-regulatory global industry
framework designed to ensure the retreat market offers responsible experiences.
The MSpa Oslo series is a perennial bestseller in global markets. With innovative
engineering and premium performance, this completely portable spa line-up is expertly
designed to meet the needs of customers worldwide. [more...]
Contrast therapy, based on the alternation of hot and cold rituals, has become one of the
most valued practices in the fields of wellness and recovery. [more...]
+ More featured suppliers
COMPANY PROFILES
Subtle Energies With 30 years of clinical research, Subtle Energies is widely recognised for its
authentic wellness [more...]
