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Record Revenues Indicate Plenty of Disposable Income in the Economy. According to the latest data from the International SPA Association (ISPA), 2015 was a record-breaking year for the industry, with revenues increasing 5.0% from 2014’s $15.5 billion to $16.3 billion.
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Record Revenues Indicate Plenty of Disposable Income in the Economy • According to the latest data from the International SPA Association (ISPA), 2015 was a record-breaking year for the industry, with revenues increasing 5.0% from 2014’s $15.5 billion to $16.3 billion. • The Day Spa Association reported during mid-2016 that total industry revenues had increased another 5.0%, which would be approximately $17.1 billion on an annual basis. • The ISPA data also revealed that spa visits increased 2.1%, to a total of 179 million during 2015; there were 360 more spa locations; revenues per visit increased 2.9%; and spa owners served more customers with fewer part-time and contract employees.
Wellness Is a Big Global Business • Globally, spas represented $99 billion of the $3.7 trillion global wellness industry during 2015. North American was third in total revenues, at $20.6 billion, with Europe first, at $27.5 billion, and Asia-Pacific second, at $21.4 billion. • Other major categories in the global wellness industry during 2015 were beauty and anti-aging, $999 billion; healthy eating, nutrition and weight loss, $648 billion; wellness tourism, $563 billion; and fitness and mind-body, $542 billion. • North America was the #1 wellness tourism destination, with $215.7 billion in total 2015 expenditures; followed by Europe, $193.4 billion; and Asia-Pacific, $11.2 billion.
Untapped Revenues in Retail Sales, Gift Cards and Loyalty Programs • Research from Day Spa Association’s (DSA) 2016 Spa and Wellness Snapshot found that those spas selling at a 0–20% retail-to-service ratio only experienced a 3% increase in retail sales from 2014 to 2015. • Those spas with more than a 20% retail-to-service ratio, however, realized a 14% increase in retail sales from 2014 to 2015. • The DSA research also revealed that spas selling more than $150,000 per year in gift cards experienced a 2% to 7% increase in total sales from 2014 to 2015. In addition, 67% of spas did not offer membership and loyalty programs.
Medical Spas and Massage Therapy as Health Treatments • The American Med Spa Association (AmSpa) reported during July 2016 that the US medical spa industry had a 20% increase in memberships and a 32% increase in Website traffic since December 2015. • According to the American Massage Therapy Association, industry revenues totaled $12.1 billion during 2015 and from July 2015 to July 2016, approximately 43.8 to 57.6 million US adults had a massage at least once. • Of those millions of massages, 50% were for medical or health reasons, such as pain management, soreness/stiffness/spasms, injury rehabilitation or overall wellness. Another 28% had a massage for relaxation/stress reduction.
Staying Current with the Trends Is Challenging, but Rewarding • DAYSPA magazine asked a number of industry leaders about 2017 trends and Julie Panky, managing partner, JMPankey Partners, listed cryotherapy, Himalayan salt therapy and Ayurveda as the biggest service trends. • Dawn Nooney, owner/esthetician in West Springfield MA, reported that a recent poll of her clients found they want reiki, nutritional counseling, non-invasive body contouring, Botox, lash extensions and brow services. • Lisa Starr, business consultant and educator, Wynn Business, emphasized the importance of having a person on staff who “can post on social media, monitor and respond to reviews, update your Website and handle e-mail blasts.”
Advertising Strategies • Data from The Media Audit shows a strong correlation between “potential spa users, women, age 25–54, and with $75,000+ annual household income” and early morning news. Suggest an after-work promotion targeting these women to relieve the stress of the day. • Recommend that medical spas place ads on the sports page of your station’s Website with a “weekend-warrior” promotion, targeting middle-aged and older adults with solutions to alleviate pain and soreness associated with being and continuing to be active. • Since spas consider “marketing for new clients” one of their biggest business challenges, show them how important it is to use television to build brand awareness coordinated with a proactive social media presence.
New Media Strategies • Using LinkedIn aggressively, spas have the opportunity to reach businesses and corporations to offer an onsite massage for stressed executives and managers and work with the HR department to create a custom program/package as an employment benefit. • Spas should consider a quarterly poll or survey of its customers via email to fine tune their services and products. Provide a digital coupon for each customer that participates. • Contributing to the local communities’ wellbeing is an excellent branding strategy and source of social media content. Volunteer to provide massages at a local fire or police station, promote a veterans’ wives day, etc. Shoot photos and videos to post online.