A deeper analysis of ISPA’s latest study shows that despite record
KPIs, the US spa industry continues to face workforce shortages, as
Eloise Corner from PricewaterhouseCoopers Research reports
Spa openings have been steady. Aman New York is one of the newest arrivals / photo: Robert Rieger
Last year, the US economy continued to recover from the COVID-19 pandemic, however, simultaneously, the rate of inflation in consumer prices accelerated dramatically. From one crisis to the next, the spa industry has had a dynamic couple of years and has been able to showcase its resilience and adaptability. New research based on data from 2,829 spas in the US shows clear evidence of a swift bounceback in key metrics, but the persistent challenge of staffing continues.
Increase in spending Throughout 2022 the cost of living crisis continued to affect US consumers, leading to less disposable income. Many would have predicted that this would result in a decrease in demand for activities such as spa-going. Yet the 2023 US Spa Industry Study compiled by the country’s International Spa Association (ISPA) and undertaken by PwC Research, shows that industry revenues soared to a landmark US$20.1 billion (€18.3 billion, £15.7 billion), an 11 per cent increase from 2021.
Spa visits recovered by 4 per cent to 181 million, while this is still almost 20 million short of 2019’s record high, it’s encouraging that visits are climbing. To meet this demand, 22 per cent of spas are increasing their weekly hours of operation. This figure increased to 32 per cent when looking at resort/hotel spas, which hoped to increase spa availability to provide a much-improved guest stay.
Bringing these two metrics together sees a sharp jump in the ever-important revenue-per-visit metric which, at US$111.50 (€101, £87), now sits at an all-time high. Put simply, those visiting spas in 2022 were spending more. Fifty-four per cent of spas confirmed this when comparing spring (March-May) 2023 figures with the same period a year ago. This increase in spending is no doubt linked to the rise in price per service which now stands at an estimated US$116 (€105, £91), compared to US$108 (€98, £84) last year (see Graph 1). The price for body treatments has gone up the most – from US$124 (€113, £97) in 2021 to US$152 (€138, £119) in 2022 – amounting to a 22 per cent hike.
The staffing challenge For the spa industry, where personal contact is core to its purpose, a highly infectious virus sweeping its way across the world could easily rank among its worst nightmares. Since then, it’s rebounded strongly. Despite the difficult environment, openings and closures appear to have been steady and the number of locations is above 21,750, an increase of 1.3 per cent compared to last year. Nonetheless, that’s still 3 per cent below the pre-pandemic level (22,430 locations in 2019), suggesting further scope for growth.
There’s currently an average of 16.5 workers per spa establishment, bringing the total number of employees in the overall industry to 360,700.
While this is a marginal increase compared to last year, staffing is an area that plagues the spa industry as a whole and is holding it back from reaching its full potential, with 67 per cent of spas stating they have openings that they’re actively trying to fill.
Almost a third (31 per cent) of spas had decreased their number of service provider/shifts per day and when focusing on resort/hotel spas, this figure increased to 46 per cent. The 2023 US Spa Industry Study data suggests the main reasons for this are staffing shortages and staff opting for a better work/life balance. As a reaction to these low levels of staff, 30 per cent of spas hide or adjust services available for booking based on availability.
Operators adopted a range of methods to reduce recruitment difficulties, (Graph 2). The most popular being financial incentives, such as higher wages (61 per cent) and/or a signing-on bonus (38 per cent), along with flexible work schedules (66 per cent).
To enhance the supply of skills, some spas have offered ‘carrots’, such as compensation for training and continuing education (42 per cent) and education reimbursement programmes (24 per cent).
Looking ahead With consumers increasingly focused on wellness and the growing demand for experiences over possessions, spas can only benefit. However, the upturn in demand continues to shine a light on the industry’s staffing challenges. An exciting, prosperous, community-driven sector, spa can offer long, successful, enjoyable careers and operators must continue their efforts to counteract recruitment challenges.
Reflecting on this year, it’s fair to say the industry has returned to a strong position and emerged with real momentum to fuel its growth.
Read more from this issue of Spa Business magazine
View contents of Spa Business 2023 issue 3
Editor's letter: Reflection point
As Spa Business celebrates its 20th birthday, Katie Barnes pauses for thought and rejoices in the industry’s evolution
Spa People: 20th anniversary issue: Anna Bjurstam
The strategic senior advisor at Six Senses and Raison d'Etre on being initiated as a shaman, why psychedelics are here to stay and her bigger fear for the global spa industry
Promotion: Klafs: Relax into wellbeing
Klafs and Studio F. A. Porsche have combined their design and wellness expertise to create an oasis for total-body relaxation
News report: Eastern promise
Japan’s spa industry is valued at US$4.2 billion and is part of the world's third highest-performing wellness economy
Jeremy McCarthy: Theory of evolution
From spa to wellness and now leisure – Spa Business’ contributing editor looks at where hospitality experiences are heading
Promotion: Lemi: Built to last
Lemi is committed to leading with innovation to create
cutting-edge treatment room solutions that excel
in terms of performance and eco-credentials
Promotion: G.M. COLLIN: Collagen pioneers
GM Collin’s expertise in collagen research and product formulation has resulted in the creation of a new serum that combats age-related skin degeneration
Promotion: Comfort Zone: A brighter future
Consumers are increasingly interested in reducing dark spots and hyperpigmentation and a new line from Comfort Zone has been launched to address this emerging need
Promotion: Art of Cryo: Life changing experience
Vikki and Robbie are often exhausted after work. A visit to the spa to experience
the Art of Cryo Tech-Spa Module is a chance to re-set and rejuvenate together
In today’s premium spa environment, every detail shapes the guest experience – right down to
the softness of towels and the freshness of linens. [more...]
+ More featured suppliers
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A deeper analysis of ISPA’s latest study shows that despite record
KPIs, the US spa industry continues to face workforce shortages, as
Eloise Corner from PricewaterhouseCoopers Research reports
Spa openings have been steady. Aman New York is one of the newest arrivals / photo: Robert Rieger
Last year, the US economy continued to recover from the COVID-19 pandemic, however, simultaneously, the rate of inflation in consumer prices accelerated dramatically. From one crisis to the next, the spa industry has had a dynamic couple of years and has been able to showcase its resilience and adaptability. New research based on data from 2,829 spas in the US shows clear evidence of a swift bounceback in key metrics, but the persistent challenge of staffing continues.
Increase in spending Throughout 2022 the cost of living crisis continued to affect US consumers, leading to less disposable income. Many would have predicted that this would result in a decrease in demand for activities such as spa-going. Yet the 2023 US Spa Industry Study compiled by the country’s International Spa Association (ISPA) and undertaken by PwC Research, shows that industry revenues soared to a landmark US$20.1 billion (€18.3 billion, £15.7 billion), an 11 per cent increase from 2021.
Spa visits recovered by 4 per cent to 181 million, while this is still almost 20 million short of 2019’s record high, it’s encouraging that visits are climbing. To meet this demand, 22 per cent of spas are increasing their weekly hours of operation. This figure increased to 32 per cent when looking at resort/hotel spas, which hoped to increase spa availability to provide a much-improved guest stay.
Bringing these two metrics together sees a sharp jump in the ever-important revenue-per-visit metric which, at US$111.50 (€101, £87), now sits at an all-time high. Put simply, those visiting spas in 2022 were spending more. Fifty-four per cent of spas confirmed this when comparing spring (March-May) 2023 figures with the same period a year ago. This increase in spending is no doubt linked to the rise in price per service which now stands at an estimated US$116 (€105, £91), compared to US$108 (€98, £84) last year (see Graph 1). The price for body treatments has gone up the most – from US$124 (€113, £97) in 2021 to US$152 (€138, £119) in 2022 – amounting to a 22 per cent hike.
The staffing challenge For the spa industry, where personal contact is core to its purpose, a highly infectious virus sweeping its way across the world could easily rank among its worst nightmares. Since then, it’s rebounded strongly. Despite the difficult environment, openings and closures appear to have been steady and the number of locations is above 21,750, an increase of 1.3 per cent compared to last year. Nonetheless, that’s still 3 per cent below the pre-pandemic level (22,430 locations in 2019), suggesting further scope for growth.
There’s currently an average of 16.5 workers per spa establishment, bringing the total number of employees in the overall industry to 360,700.
While this is a marginal increase compared to last year, staffing is an area that plagues the spa industry as a whole and is holding it back from reaching its full potential, with 67 per cent of spas stating they have openings that they’re actively trying to fill.
Almost a third (31 per cent) of spas had decreased their number of service provider/shifts per day and when focusing on resort/hotel spas, this figure increased to 46 per cent. The 2023 US Spa Industry Study data suggests the main reasons for this are staffing shortages and staff opting for a better work/life balance. As a reaction to these low levels of staff, 30 per cent of spas hide or adjust services available for booking based on availability.
Operators adopted a range of methods to reduce recruitment difficulties, (Graph 2). The most popular being financial incentives, such as higher wages (61 per cent) and/or a signing-on bonus (38 per cent), along with flexible work schedules (66 per cent).
To enhance the supply of skills, some spas have offered ‘carrots’, such as compensation for training and continuing education (42 per cent) and education reimbursement programmes (24 per cent).
Looking ahead With consumers increasingly focused on wellness and the growing demand for experiences over possessions, spas can only benefit. However, the upturn in demand continues to shine a light on the industry’s staffing challenges. An exciting, prosperous, community-driven sector, spa can offer long, successful, enjoyable careers and operators must continue their efforts to counteract recruitment challenges.
Reflecting on this year, it’s fair to say the industry has returned to a strong position and emerged with real momentum to fuel its growth.
Read more from this issue of Spa Business magazine
View contents of Spa Business 2023 issue 3
Editor's letter: Reflection point
As Spa Business celebrates its 20th birthday, Katie Barnes pauses for thought and rejoices in the industry’s evolution
Spa People: 20th anniversary issue: Anna Bjurstam
The strategic senior advisor at Six Senses and Raison d'Etre on being initiated as a shaman, why psychedelics are here to stay and her bigger fear for the global spa industry
Promotion: Klafs: Relax into wellbeing
Klafs and Studio F. A. Porsche have combined their design and wellness expertise to create an oasis for total-body relaxation
News report: Eastern promise
Japan’s spa industry is valued at US$4.2 billion and is part of the world's third highest-performing wellness economy
Jeremy McCarthy: Theory of evolution
From spa to wellness and now leisure – Spa Business’ contributing editor looks at where hospitality experiences are heading
Promotion: Lemi: Built to last
Lemi is committed to leading with innovation to create
cutting-edge treatment room solutions that excel
in terms of performance and eco-credentials
Promotion: G.M. COLLIN: Collagen pioneers
GM Collin’s expertise in collagen research and product formulation has resulted in the creation of a new serum that combats age-related skin degeneration
Promotion: Comfort Zone: A brighter future
Consumers are increasingly interested in reducing dark spots and hyperpigmentation and a new line from Comfort Zone has been launched to address this emerging need
Promotion: Art of Cryo: Life changing experience
Vikki and Robbie are often exhausted after work. A visit to the spa to experience
the Art of Cryo Tech-Spa Module is a chance to re-set and rejuvenate together
A recent survey by the UK Spa Association (UKSA) into the industry’s approach to cancer care
has revealed that almost half of participating respondents (46 per cent) are unaware that
cancer is a disability and guests with a cancer diagnosis must be given
Mexican operator, Solmar Hotels and Resorts, is hosting a series of events in celebration of
Global Wellness Day, including a Temazcal ceremony at its Playa Grande Resort and Spa in Los
Cabos.
Mandarin Oriental has announced a standalone residence brand, Mansions, which will debut at
Emirates Palace, Mandarin Oriental Mansions, Abu Dhabi, in 2029.
Four Seasons Resort The Nam Hai in Hoi An, Vietnam, has put together a Global Wellness Day
(GWD) agenda with activations rooted in nature and shaped by four pillars of Joy – in
alignment with the day’s theme #JoyMagenta.
The Global Wellness Summit (GWS) will celebrate its 20th anniversary at the 2026 event in
Phuket, Thailand, later this year with the theme: The Science, Art and Soul of Wellness.
Auko, an all-inclusive development, is opening in Phong Nha in Vietnam in Q3 2026, with a
series of 30 tented eco-lodges and wellness hospitality operations by Lumina Wellbeing.
Therme Manchester’s 28-acre development, which will include interconnected glass pavilions
that measure 65,000sq m, will be the largest bathing and wellbeing attraction in the world once
complete, according to prof David Russell, CEO of Therme UK.
Naples Beach Club, a Four Seasons Resort, has opened a 2,800sq m spa called The Sanctuary,
with the design and concept inspired by the Native American people that populated Florida’s
Southwest coast – the Calusa.
Swire Hotels’ luxury hospitality brand Upper House has revealed it will roll out its two-day
House of Healing retreats at its three hotels in Hong Kong, Chengdu and Shanghai.
In today’s premium spa environment, every detail shapes the guest experience – right down to
the softness of towels and the freshness of linens. [more...]
+ More featured suppliers
COMPANY PROFILES
Lemi Group Lemi Group designs and produces treatment tables, chairs and multi-functional furniture and equipmen [more...]
