Mcilheney takes centre stage at ISPA’s conference annually / photo: ISPA
It was a landmark moment when the International Spa Association (ISPA) revealed its inaugural Spa Industry Study in 2000. The first of its kind, the report provided a true picture of the sector in the US and Canada, looking at the number of locations, their size, spa visits, revenues and employment figures. Released almost annually since then, it’s become an invaluable benchmark.
From day one, knowing how credibility was essential, ISPA teamed up with PricewaterhouseCoopers (PwC) – one of the world’s leading professional services and accounting firms – to gather and analyse the data.
And from day one, Colin Mcilheney has been a constant behind those figures. On p64, he digs out the gems from the latest 2025 US Spa Industry Study exclusively for Spa Business. But here, we find out more about the Irishman who delivers the findings at the ISPA conference each year and get his take on the major challenges and opportunities ahead.
How did it all start for you? I’ve always had an aptitude for numbers and a fascination with trend changes. At the same time, I’ve also been inquisitive about survey design and aside from my main career, I’ve been involved in the national census advisory group in Northern Ireland since the early 1990s.
My career in research has spanned the academic, public and private sectors – including 30 years at PwC. One of my biggest highlights was helping to establish PwC’s International Survey Unit. We were tasked with building a team of experts in questionnaire design and organising surveys, particularly on a global scale, who could also implement them, analyse the findings and come up with recommendations.
Our flagship study was an annual survey of chief executives, which still takes centre stage at the Davos World Economic Forum.
So you’ve travelled a lot? Yes. I’m from Northern Ireland and started with PwC in its Belfast office, but then moved to New York for 10 years to build up its reputation as a global specialist research centre. It’s been a tremendously enjoyable career visiting so many cities, from Johannesburg to Auckland, and being exposed to so many cultures.
What industries have you covered in your time? We adapted the PwC global survey to consult in a multitude of sectors, from the armed forces and aviation to banking. I’ve done a lot of work in the business and executive coaching market as well as with travel tour operators. Leisure and hospitality has been a particular specialism.
When did you start working with ISPA? I was drafted in as a survey expert in the late 1990s, creating and leading its very first Spa Industry Study.
I think of myself as an ‘institutional memory’ and one of the real beauties of research for this industry is that you can track the same metrics year-on-year. I’ve seen it grow from 3,000-4,000 spas to more than 20,000.
What’s the advantage of working on something for so long? You become sensitive to the small details – what does and doesn’t feel right – and can pinpoint trends, giving you the ability to talk with authority.
However, you have to be honest. In 2008, I had to deliver some tough messages in the height of the global downturn and again during the pandemic in 2020. But credibility is essential.
Another plus is the relationships I’ve made. Most of the biggest spa operators in the US freely hand over their sensitive data to me and the level of detail they give is the holy grail for analysts. A lot of responsibility comes with having access to this information and I take this incredibly seriously.
You set up your own consultancy nearly two years ago? Yes, I’ve just turned 70 and now have four grandsons, so it was time to retire. I’ve maintained clients in the coaching and travel sector, but ISPA is still my main focus. In 2022, they presented me with the Distinguished Service Award for contributions to the industry and that really meant a lot to me. I’ve already started on the 2026 study – and long may our relationship continue, I say.
What’s your key takeaway from the latest US Spa Industry Study? I give a full summary on p64, but I think it’s got to be the 187 million spa visits that were recorded in the last year. This demonstrates that we’re starting to see a real return to spa, which has been a concern for a number of years. They’re not back to pre-pandemic levels yet, but they’ve gone up by a significant 3.1 per cent, showing that efforts to entice clients back are paying off.
Revenues are also up by 5.8 per cent to US$22.5 billion (€19.15 billion, £16.67 billion) and there’s clear evidence that visitors are spending more each time. As far as I can tell, there hasn’t been a pushback on prices going up – yet – but the reality is that you can’t squeeze people indefinitely. To keep growing, spas need to reach out to different demographics. There’s a large number of Americans who never go to spas.
Where’s the untapped potential? I’ve profiled spa guests across generations and it’s clear that baby boomers are dwindling. Remarkably, while we still think of millennials as Peter Pan, many are now in their 40s with more financial responsibilities. Gen Z, however, is rapidly emerging with spending power and I’m convinced they’ll be interested in spa-going.
What models are the most resilient? Some ultra-high-end hotels, especially those tied to global luxury brands, are showing profit margins of up to 35 per cent. But not all is rosy – 1,500 spas across the board aren’t making money and are feeling the impact of rising costs.
How do spa margins compare to adjacent sectors? Being labour-intensive, wages will always weigh on profits in comparison to the fitness or hospitality sectors. AI innovations like massage robots and other touchless therapies may help with this. But at its heart, I believe spa will always be a hands-on industry (literally) with high labour costs.
What numbers are stakeholders pushing for? Operators always ask me about compensation. It’s top of people’s minds and we first posed questions about it four, maybe five years ago. ISPA publishes average salary details for managers and therapists in its full study, though variation is huge. There hasn’t been much state-by-state analysis yet, but California is always a good barometer as it has such a high concentration of spas.
What’s the fallout from the Trump tariffs? They will definitely affect operators reliant on imports of raw materials, products and equipment. But they’re difficult to navigate, as they’re so volatile. The topic might be something ISPA focuses on in a dedicated snapshot survey and I imagine the issue will be addressed in its main 2026 study.
What other challenges do you foresee? If I were an operator, I’d be questioning whether the wellness trend will continue to dominate in the long-term. Will there be a point when consumers return to spas simply to be pampered? People are bombarded with advice on what’s good for them – perhaps they’ll just want to go somewhere to relax again.
What do the next 10 years look like for the industry? US spas have performed well for some time and I believe in the ‘build it and they will come’ approach. The key to growing faster lies in attracting more first-time visitors – because once they cross the threshold, we know they’ll spend.
Read more from this issue of Spa Business magazine
Spa people: Tim Fu
Leading a wellness architecture project in Slovenia that’s one of the first in the world to use AI in all stages of design
Spa people: Kayley Thomas
Lush is famous for its bath bombs and retail empire, but the co-founder of its day spa concept reveals why its 19 global spa facilities are so essential
Spa people: Colin Mcilheney
We find out more about Colin Mcilheney, the man who created the ISPA US Spa Industry Study and has been analysing the sector’s performance ever since
News report: Map of luxury
New research by WATG shows emerging wealth hubs in India, the Gulf, Southeast Asia and Africa are reshaping luxury travel demand
Interview: Chris Norton
The CEO of Equinox Hotels tells Katie Barnes how the uber-cool brand is scaling its bold fusion of fitness, spa and luxury
Ask an expert...: Recovery
From cryo to compression to contrast bathing, Julie Cramer investigates why and how spas and resorts are integrating recovery packages
Research: Behind the boom
What are the hidden messages in the latest US study by ISPA? Colin Mcilheney digs beneath the surface
Research: Bigger picture
Rising salaries and shifting consumer expectations – two new surveys by the UKSA and GSG reveal the trends impacting UK spa operators
Sponsored: Lemi - Good sensations
Lemi’s Venice Head Spa combines the beauty of Italian design with fine-tuned technology to provide the ultimate top-to-toe treatment station for spas
Sponsored: G.M. COLLIN – Smooth operator
The new toner from G.M. Collin represents a ‘gold standard’ in leave-on liquid exfoliation for smooth and radiant results, without the irritation of a scrub
Sponsored: TechnoAlpin – Snow for all seasons
TechnoAlpin’s magical Snowroom installation at the Alpenrose resort brings the Austrian landscape and feel-good nature factor to its wellbeing experience
First person: Costa Blanca cure
Jane Kitchen visits Spain to compare and contrast two world-class medi-wellness clinics: well-established SHA and ambitious newcomer ZEM
Sponsored: Gharieni Group – Tech-powered recovery
The new brand in the Gharieni Group portfolio – Metawell – is delivering what today’s wellness clients are seeking most – deep recovery and mind-body renewal
Sponsored: BC Softwear – Human touch
While touchless therapies are a positive addition to spas, nothing can replace the healing power of human touch, says Barbara Cooke
Sponsored: Yon-ka – A potent blend
Yon-Ka’s new Serum Omega is a potent blend of Omega 3, 6 and 9 to target
dry, stressed-out skin and deliver a calm and nourishing client experience
Menu engineering: At your service
Self-playing gongs in Sweden, surfing therapy in Morocco and Ananda launches holistic diabetes management programme in India
Mcilheney takes centre stage at ISPA’s conference annually / photo: ISPA
It was a landmark moment when the International Spa Association (ISPA) revealed its inaugural Spa Industry Study in 2000. The first of its kind, the report provided a true picture of the sector in the US and Canada, looking at the number of locations, their size, spa visits, revenues and employment figures. Released almost annually since then, it’s become an invaluable benchmark.
From day one, knowing how credibility was essential, ISPA teamed up with PricewaterhouseCoopers (PwC) – one of the world’s leading professional services and accounting firms – to gather and analyse the data.
And from day one, Colin Mcilheney has been a constant behind those figures. On p64, he digs out the gems from the latest 2025 US Spa Industry Study exclusively for Spa Business. But here, we find out more about the Irishman who delivers the findings at the ISPA conference each year and get his take on the major challenges and opportunities ahead.
How did it all start for you? I’ve always had an aptitude for numbers and a fascination with trend changes. At the same time, I’ve also been inquisitive about survey design and aside from my main career, I’ve been involved in the national census advisory group in Northern Ireland since the early 1990s.
My career in research has spanned the academic, public and private sectors – including 30 years at PwC. One of my biggest highlights was helping to establish PwC’s International Survey Unit. We were tasked with building a team of experts in questionnaire design and organising surveys, particularly on a global scale, who could also implement them, analyse the findings and come up with recommendations.
Our flagship study was an annual survey of chief executives, which still takes centre stage at the Davos World Economic Forum.
So you’ve travelled a lot? Yes. I’m from Northern Ireland and started with PwC in its Belfast office, but then moved to New York for 10 years to build up its reputation as a global specialist research centre. It’s been a tremendously enjoyable career visiting so many cities, from Johannesburg to Auckland, and being exposed to so many cultures.
What industries have you covered in your time? We adapted the PwC global survey to consult in a multitude of sectors, from the armed forces and aviation to banking. I’ve done a lot of work in the business and executive coaching market as well as with travel tour operators. Leisure and hospitality has been a particular specialism.
When did you start working with ISPA? I was drafted in as a survey expert in the late 1990s, creating and leading its very first Spa Industry Study.
I think of myself as an ‘institutional memory’ and one of the real beauties of research for this industry is that you can track the same metrics year-on-year. I’ve seen it grow from 3,000-4,000 spas to more than 20,000.
What’s the advantage of working on something for so long? You become sensitive to the small details – what does and doesn’t feel right – and can pinpoint trends, giving you the ability to talk with authority.
However, you have to be honest. In 2008, I had to deliver some tough messages in the height of the global downturn and again during the pandemic in 2020. But credibility is essential.
Another plus is the relationships I’ve made. Most of the biggest spa operators in the US freely hand over their sensitive data to me and the level of detail they give is the holy grail for analysts. A lot of responsibility comes with having access to this information and I take this incredibly seriously.
You set up your own consultancy nearly two years ago? Yes, I’ve just turned 70 and now have four grandsons, so it was time to retire. I’ve maintained clients in the coaching and travel sector, but ISPA is still my main focus. In 2022, they presented me with the Distinguished Service Award for contributions to the industry and that really meant a lot to me. I’ve already started on the 2026 study – and long may our relationship continue, I say.
What’s your key takeaway from the latest US Spa Industry Study? I give a full summary on p64, but I think it’s got to be the 187 million spa visits that were recorded in the last year. This demonstrates that we’re starting to see a real return to spa, which has been a concern for a number of years. They’re not back to pre-pandemic levels yet, but they’ve gone up by a significant 3.1 per cent, showing that efforts to entice clients back are paying off.
Revenues are also up by 5.8 per cent to US$22.5 billion (€19.15 billion, £16.67 billion) and there’s clear evidence that visitors are spending more each time. As far as I can tell, there hasn’t been a pushback on prices going up – yet – but the reality is that you can’t squeeze people indefinitely. To keep growing, spas need to reach out to different demographics. There’s a large number of Americans who never go to spas.
Where’s the untapped potential? I’ve profiled spa guests across generations and it’s clear that baby boomers are dwindling. Remarkably, while we still think of millennials as Peter Pan, many are now in their 40s with more financial responsibilities. Gen Z, however, is rapidly emerging with spending power and I’m convinced they’ll be interested in spa-going.
What models are the most resilient? Some ultra-high-end hotels, especially those tied to global luxury brands, are showing profit margins of up to 35 per cent. But not all is rosy – 1,500 spas across the board aren’t making money and are feeling the impact of rising costs.
How do spa margins compare to adjacent sectors? Being labour-intensive, wages will always weigh on profits in comparison to the fitness or hospitality sectors. AI innovations like massage robots and other touchless therapies may help with this. But at its heart, I believe spa will always be a hands-on industry (literally) with high labour costs.
What numbers are stakeholders pushing for? Operators always ask me about compensation. It’s top of people’s minds and we first posed questions about it four, maybe five years ago. ISPA publishes average salary details for managers and therapists in its full study, though variation is huge. There hasn’t been much state-by-state analysis yet, but California is always a good barometer as it has such a high concentration of spas.
What’s the fallout from the Trump tariffs? They will definitely affect operators reliant on imports of raw materials, products and equipment. But they’re difficult to navigate, as they’re so volatile. The topic might be something ISPA focuses on in a dedicated snapshot survey and I imagine the issue will be addressed in its main 2026 study.
What other challenges do you foresee? If I were an operator, I’d be questioning whether the wellness trend will continue to dominate in the long-term. Will there be a point when consumers return to spas simply to be pampered? People are bombarded with advice on what’s good for them – perhaps they’ll just want to go somewhere to relax again.
What do the next 10 years look like for the industry? US spas have performed well for some time and I believe in the ‘build it and they will come’ approach. The key to growing faster lies in attracting more first-time visitors – because once they cross the threshold, we know they’ll spend.
Read more from this issue of Spa Business magazine
Spa people: Tim Fu
Leading a wellness architecture project in Slovenia that’s one of the first in the world to use AI in all stages of design
Spa people: Kayley Thomas
Lush is famous for its bath bombs and retail empire, but the co-founder of its day spa concept reveals why its 19 global spa facilities are so essential
Spa people: Colin Mcilheney
We find out more about Colin Mcilheney, the man who created the ISPA US Spa Industry Study and has been analysing the sector’s performance ever since
News report: Map of luxury
New research by WATG shows emerging wealth hubs in India, the Gulf, Southeast Asia and Africa are reshaping luxury travel demand
Interview: Chris Norton
The CEO of Equinox Hotels tells Katie Barnes how the uber-cool brand is scaling its bold fusion of fitness, spa and luxury
Ask an expert...: Recovery
From cryo to compression to contrast bathing, Julie Cramer investigates why and how spas and resorts are integrating recovery packages
Research: Behind the boom
What are the hidden messages in the latest US study by ISPA? Colin Mcilheney digs beneath the surface
Research: Bigger picture
Rising salaries and shifting consumer expectations – two new surveys by the UKSA and GSG reveal the trends impacting UK spa operators
Sponsored: Lemi - Good sensations
Lemi’s Venice Head Spa combines the beauty of Italian design with fine-tuned technology to provide the ultimate top-to-toe treatment station for spas
Sponsored: G.M. COLLIN – Smooth operator
The new toner from G.M. Collin represents a ‘gold standard’ in leave-on liquid exfoliation for smooth and radiant results, without the irritation of a scrub
Sponsored: TechnoAlpin – Snow for all seasons
TechnoAlpin’s magical Snowroom installation at the Alpenrose resort brings the Austrian landscape and feel-good nature factor to its wellbeing experience
First person: Costa Blanca cure
Jane Kitchen visits Spain to compare and contrast two world-class medi-wellness clinics: well-established SHA and ambitious newcomer ZEM
Sponsored: Gharieni Group – Tech-powered recovery
The new brand in the Gharieni Group portfolio – Metawell – is delivering what today’s wellness clients are seeking most – deep recovery and mind-body renewal
Sponsored: BC Softwear – Human touch
While touchless therapies are a positive addition to spas, nothing can replace the healing power of human touch, says Barbara Cooke
Sponsored: Yon-ka – A potent blend
Yon-Ka’s new Serum Omega is a potent blend of Omega 3, 6 and 9 to target
dry, stressed-out skin and deliver a calm and nourishing client experience
Menu engineering: At your service
Self-playing gongs in Sweden, surfing therapy in Morocco and Ananda launches holistic diabetes management programme in India
The UK spa review and discovery platform for consumers, the Good Spa Guide, has announced
it will host the Good Spa Guide Awards 2026 during an event on 16 November at Sopwell House
Hotel in St Albans, UK.
Eighty-four per cent of consumers now say wellness is a top priority in their lives, with this
percentage increasing year on year, according to a preview presentation of McKinsey’s Future of
Wellness 2026 research report.
Mass protests have been taking place since Monday 1 June in Albania over the development of
a luxury resort by Donald Trump’s daughter Ivanka Trump and her husband Jared Kushner.
Global Wellness Day (GWD) marked its 15th anniversary on Saturday 13 June 2026, with the
theme: #JoyMagenta – a celebration of the healing qualities of simple gestures and activities
that spark joy.
Global luxury hospitality brand, Six Senses, has partnered with longevity healthcare provider,
HUM2N, to launch a clinic at Six Senses London, at The Whiteley.
As part of its first hotel partnership, Mayrlife – the medical health resort company known for its
site in Altaussee, Austria – has launched a day clinic at the Rosewood Vienna.
Premium London health club, KX Chelsea, will imminently unveil its most significant
redevelopment since its launch in 2002 to create an integrated wellness model combining
training, recovery and relaxation.
Rosewood Le Guanahani St Barth, on the northeast coast of Saint Barthélemy in the French
West Indies, is offering a programme of ocean-inspired yoga classes between 8-14 June to
celebrate Global Wellness Day (GWD).
Hotel de France, located on the British Isle of Jersey, has created a wellness retreat package
that includes a hot yoga session that will take place in Jersey Zoo’s butterfly sanctuary.
The Ritz-Carlton, Langkawi, in Malaysia, has revealed a schedule for Global Wellness Day
(GWD) that includes guided rainforest walks, mindful movement and guided coastal meditation
experiences.
