GET SPA BUSINESS
magazine
Yes! Send me the FREE digital editions of Spa Business and Spa Business insider magazines and the FREE weekly Spa Business and Spa Business insider ezines and breaking news alerts!
Not right now, thanksclose this window
News report
Industry indicator: ISPA's Big Five

ISPA’s 2021 study gives the clearest picture yet of how COVID-19 has affected the US spa sector. Megan Whitby reports


Spas in the US experienced a US$7bn drop in total revenue in 2020, decreasing by 34 per cent from US$19.1bn at the end of 2019 to US$12.1bn.

This was one of the ‘Big Five’ stats revealed as a sneak preview to ISPA’s 2021 US Spa Industry Study at its Stronger Together Summit in May.

Conducted by PricewaterhouseCoopers (PwC), the report outlines overall revenue, number of spa visits, number of spas, revenue per visit and total employees for the US spa industry in 2020.

“These statistics provide the clearest picture yet of the pandemic’s impact in the spa sector,” says Lynne McNees, ISPA president. “We trust these figures, along with the full report coming later this year, will provide the industry at large with meaningful insights they can use to aid their recovery.”

Day spas fared better
The Big Five results (see table on p39) indicate that resort and hotel spas have been harder hit than days spas with average revenue falling 46 per cent and 31 per cent respectively.

Spa visits dropped from 192 million in 2019 to 124 million in 2020, while average revenue per visit shifted slightly from US$99.5 to US$97.5.

In addition, as of December 2020, 21,560 spa businesses were recorded, compared to 22,430 in December 2019. But these figures still include temporary closures due to lockdown.

PwC found that, as of January 2021, roughly 305,000 spa employees had returned to US spas, compared to the previous 384,000 in January 2020. Overall that’s a drop of 20.6 per cent of the workforce but contractors were the hardest hit with 45.3 per cent of them still not back at work.

Again, data showed that day spas fared better in these workforce metrics by a fairly sizeable margin. One in two resort/hotel spas (51 per cent) reported a greater than 25 per cent decrease in staff, compared to one in five day spas (23 per cent).

McNees remarks: “The time line for a full recovery is uncertain, but we’re confident that there’s considerable demand for spa experiences and that as pandemic-related restrictions continue to lift, spas will make strong gains.”

Grounds for optimism
Russel Donaldson, manager at PwC Research, presented the Big Five stats at the summit alongside his colleague Colin McIlheney, PwC global research leader.

The duo report that although numbers reflect the impact of the pandemic, things look hopeful for the industry. McIlheney says: “It’s clear there’s pent-up demand to get out to spas. There are definitely grounds for optimism for the later quarters of this year and particularly for 2022.”

He adds that it’s important that spas widen their customer database for a quicker recovery. “Personally, I could see demand rolling on, not just driven by old existing customers but being driven by a new even more diverse base of guests.”

Standout figures
For Donaldson, the most intriguing finding is “the fragmentation between different parts of the industry and the outcomes for day spas versus resorts/hotel spas”.

McIlheney feels the location metrics were the most remarkable. “With regards to locations, there were many people who thought numbers would fall off a cliff,” he says, “but the fact that there are still so many spas – over 20,000 – to choose from is very encouraging.

“In contrast, the drops in revenue and visits were expected and I anticipated they’d be in and around the mark they were.”

The US Spa Industry Study has been published by ISPA since 1999 and in the latest edition it surveyed over 2,050 day, destination and medical spas.

The association is set to release its full findings in July.

Sign up here to get the Spa Business and Spa Business insider weekly ezines and every issue of Spa Business and Spa Business insider magazines free on digital.
At the end of 2020, the number of US spas had dropped by only 3.9 per cent Credit: photo: UfaBizPhoto/SHUTTERSTOCK
Findings were presented by PwC’s Russel Donaldson (left) and Colin McIlheney (right)
*Count of spas includes spas that were temporarily closed at the end of the calendar year 2020
FEATURED SUPPLIERS

Red Light Rising’s premium red light therapy enhances health-focused businesses
Looking for ways to increase your revenue and offer your clients a premium service? Red light therapy might be exactly what you’re looking for. [more...]

Stratton House delivers a blast from the past
Long-serving Independent Hotel Show exhibitor Crown Sports Lockers received a call out of the blue early in 2021 from Stratton House. [more...]
+ More featured suppliers  
COMPANY PROFILES
Book4Time Inc.

Book4Time is a global leader in spa, wellness and leisure activity management solutions for the hosp [more...]
+ More profiles  
CATALOGUE GALLERY
 

+ More catalogues  

VIDEO GALLERY

BluGalaxy a Division of Blu Spas
This animation showcases the beautiful concept design of BluGalaxy Spa. Find out more...
+ More videos  

DIRECTORY
+ More directory  
DIARY

 

31 Oct - 03 Nov 2021

GSN Buyers Conference - Green Spa Network

Ojai Valley Inn & Spa, Ojai, United States
09 Nov 2021

We Work Well North America

Virtual, United States
+ More diary  
 
ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
 
SPA BUSINESS
SPA OPPORTUNITIES
SPA BUSINESS HANDBOOK
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS
ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2021
News   Products   Magazine
News report
Industry indicator: ISPA's Big Five

ISPA’s 2021 study gives the clearest picture yet of how COVID-19 has affected the US spa sector. Megan Whitby reports


Spas in the US experienced a US$7bn drop in total revenue in 2020, decreasing by 34 per cent from US$19.1bn at the end of 2019 to US$12.1bn.

This was one of the ‘Big Five’ stats revealed as a sneak preview to ISPA’s 2021 US Spa Industry Study at its Stronger Together Summit in May.

Conducted by PricewaterhouseCoopers (PwC), the report outlines overall revenue, number of spa visits, number of spas, revenue per visit and total employees for the US spa industry in 2020.

“These statistics provide the clearest picture yet of the pandemic’s impact in the spa sector,” says Lynne McNees, ISPA president. “We trust these figures, along with the full report coming later this year, will provide the industry at large with meaningful insights they can use to aid their recovery.”

Day spas fared better
The Big Five results (see table on p39) indicate that resort and hotel spas have been harder hit than days spas with average revenue falling 46 per cent and 31 per cent respectively.

Spa visits dropped from 192 million in 2019 to 124 million in 2020, while average revenue per visit shifted slightly from US$99.5 to US$97.5.

In addition, as of December 2020, 21,560 spa businesses were recorded, compared to 22,430 in December 2019. But these figures still include temporary closures due to lockdown.

PwC found that, as of January 2021, roughly 305,000 spa employees had returned to US spas, compared to the previous 384,000 in January 2020. Overall that’s a drop of 20.6 per cent of the workforce but contractors were the hardest hit with 45.3 per cent of them still not back at work.

Again, data showed that day spas fared better in these workforce metrics by a fairly sizeable margin. One in two resort/hotel spas (51 per cent) reported a greater than 25 per cent decrease in staff, compared to one in five day spas (23 per cent).

McNees remarks: “The time line for a full recovery is uncertain, but we’re confident that there’s considerable demand for spa experiences and that as pandemic-related restrictions continue to lift, spas will make strong gains.”

Grounds for optimism
Russel Donaldson, manager at PwC Research, presented the Big Five stats at the summit alongside his colleague Colin McIlheney, PwC global research leader.

The duo report that although numbers reflect the impact of the pandemic, things look hopeful for the industry. McIlheney says: “It’s clear there’s pent-up demand to get out to spas. There are definitely grounds for optimism for the later quarters of this year and particularly for 2022.”

He adds that it’s important that spas widen their customer database for a quicker recovery. “Personally, I could see demand rolling on, not just driven by old existing customers but being driven by a new even more diverse base of guests.”

Standout figures
For Donaldson, the most intriguing finding is “the fragmentation between different parts of the industry and the outcomes for day spas versus resorts/hotel spas”.

McIlheney feels the location metrics were the most remarkable. “With regards to locations, there were many people who thought numbers would fall off a cliff,” he says, “but the fact that there are still so many spas – over 20,000 – to choose from is very encouraging.

“In contrast, the drops in revenue and visits were expected and I anticipated they’d be in and around the mark they were.”

The US Spa Industry Study has been published by ISPA since 1999 and in the latest edition it surveyed over 2,050 day, destination and medical spas.

The association is set to release its full findings in July.

Sign up here to get the Spa Business and Spa Business insider weekly ezines and every issue of Spa Business and Spa Business insider magazines free on digital.
At the end of 2020, the number of US spas had dropped by only 3.9 per cent Credit: photo: UfaBizPhoto/SHUTTERSTOCK
Findings were presented by PwC’s Russel Donaldson (left) and Colin McIlheney (right)
*Count of spas includes spas that were temporarily closed at the end of the calendar year 2020
LATEST NEWS
The Spa Collaborative launches The Spa Strategy Success Mapper to help build and elevate spa businesses
Spa business development company The Spa Collaborative (TSC) has unveiled a new service called The Spa Strategy Success Mapper.
Fairmont Century Plaza’s 14,000sq ft spa opens to underpin hotel’s mission to become sanctuary for the health-conscious
Fairmont Spa Century Plaza is now open at the new Fairmont Century Plaza hotel, in Los Angeles, formerly home to the iconic crescent-shaped former Century Plaza Hotel.
ESPA designs holistic treatment series for One&Only and will plant at least one tree for every ritual booked
Luxury resort operator One&Only Resorts and international skincare and spa brand ESPA have partnered to bring new spa programming to select One&Only resorts.
Marriott innovating to relaunch two of its major hotel spa concepts, reveals Kenneth Ryan
Marriott’s global head of spa Kenneth Ryan has revealed the company is preparing two new major spa concepts for its St. Regis and W Hotels hospitality brands, during an exclusive interview with Spa Business.
2021 World Spa and Wellness Award winners announced
The winners of the World Spa and Wellness (WSW) Awards have been crowned as part of the official 2021 WSW Conference, hosted on 17 and 18 October at Excel Centre in London.
Virtual Healing Summit to explore how to heal the self, the community and the earth
Anne Biging and Dr Elisabeth Ixmeier, founders of Healing Hotels of the World and the Healing Summit, are gathering activists, scientists and inspired leaders to host a virtual Healing Summit event on 23 October.
Exercise stops cancer growth
Exercise has been highlighted as a crucial weapon in cancer patients’ battle against the disease.
World Spa and Wellness Convention 2021 kicks off in London
Today (17 October) marks the first day of the annual World Spa and Wellness conference, hosted at London’s ExCeL exhibition centre.
Minor Hotels to unveil medi-wellness facility in Thailand in partnership with VLCC
Minor Hotels is realising its first location in collaboration with established India-based beauty and wellness brand VLCC, two years after the partnership was announced in 2019.
The convergence of healthcare and wellness: Global Wellness Summit announces key topics for 2021 conference
The Global Wellness Summit (GWS) has today announced its first round of speakers for the 2021 Summit.
Mindbody buys ClassPass
Mindbody has announced it's buying ClassPass, the consumer wellness subscription service which enables people to use a range of gyms, studios and wellness facilities for one monthly subscription.
Lanserhof’s all-new €120m island wellness retreat in Germany set for Q2 opening
Medical spa brand Lanserhof will open its first coastal resort on the island of Sylt in northern Germany, in Spring 2022.
+ More news   
 
FEATURED SUPPLIERS

Red Light Rising’s premium red light therapy enhances health-focused businesses
Looking for ways to increase your revenue and offer your clients a premium service? Red light therapy might be exactly what you’re looking for. [more...]

Stratton House delivers a blast from the past
Long-serving Independent Hotel Show exhibitor Crown Sports Lockers received a call out of the blue early in 2021 from Stratton House. [more...]
+ More featured suppliers  
COMPANY PROFILES
Book4Time Inc.

Book4Time is a global leader in spa, wellness and leisure activity management solutions for the hosp [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

VIDEO GALLERY

BluGalaxy a Division of Blu Spas
This animation showcases the beautiful concept design of BluGalaxy Spa. Find out more...
+ More videos  

DIRECTORY
+ More directory  
DIARY

 

31 Oct - 03 Nov 2021

GSN Buyers Conference - Green Spa Network

Ojai Valley Inn & Spa, Ojai, United States
09 Nov 2021

We Work Well North America

Virtual, United States
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2021

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS