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Evaluating Spa Research and Deciding What Data Speaks for Our Industry
Evaluating Spa Research and Deciding What Data Speaks for Our IndustryBy Susie Ellis
This is an important topic, one that I have decided to tackle in small bits rather than in one large blog post. As many people know, ISPA had their media event in New York about three weeks ago and gave some preliminary results from their two upcoming research reports – one regarding the domestic spa industry and the other their first global study. Some of the information given out at the media event (which I attended), along with some of the information posted on their website and mentioned in their recent press releases, stirred up questions and concerns – especially in regards to the issue of the decrease, or flattening, of total spa revenues when comparing 2006 with 2005.
I have gotten emails from industry colleagues with questions and have also read a few other blogs where the issue has, and still is, being discussed. Initially I had written a blog to explain my viewpoint and share additional spa research data from other sources including Spa Finder, but after posting, for just one day, I decided to take it down and speak with some of the people at ISPA first. I wanted to be certain that I had good understanding of the background of the situation. Therefore I emailed Jim Root, Chairman of ISPA and Stephanie Ashley, who is in charge of ISPA’s research to ask each of them if I might be able to speak with them by phone. Both were gracious and said yes. We then had our phone call on Tuesday which involved a few other ISPA staff members as well as Nikita Sarkar, Spa Finder’s research director. Together we addressed concerns and discrepancies - and I think all of us came away with greater understanding.
Beginning tomorrow I will address these issues one by one. I think I’ll start with the issue of what is counted as spa revenue.
Looking forward to having your input as well so please click on “comment” at the end of any of these blog posts to add your perspectives as well.
Labels: ISPA, Jim Root, Nikita Sarkar, research
posted by Susie at Wednesday, August 29, 2007
1 Comments:
As a member of the media (I'm also a consultant and speaker), I've never had the opportunity to attend ISPA's Media Event; however, I've always ained copies
of the study summaries that were distributed at these events. Any study data,regardless of the industry targeted or the group conducting it, will be subject
to questioning, particularly when a year-to-year comparison is made, where variables are skewed from year-to-year. Skewing will occur unless the same survey participant is constant for each subsequent survey period, and the same
questions or survey criteria is also constant. Further, data is only valid based on the number of the survey participants, and not necessarily indicative of the total industry, and should be viewed as such. Unless there is a 100% level of participation of all like-businesses in the industry surveyed, the survey data will only approximate under this optimum circumstance; this type of
"sampling" is generally the basis for all survey outcomes, with a further stablizing factor of a "margin for error, plus or minus percentage". A total survey generally can't be done because many businesses refuse to share their data with others, or the cost to undertake an all-encompassing study could be
cost prohibitive.
Further, assuming the voracity and integrity of the study participant's answers to the questions, what I conclude from some of the numbers in the current ISPA Study is a direct correlation to the broader issues of the economy that translate into especially a decreased purchasing capacity/diminished excess
cash funds for the consumer, particularly for non-bread and butter issues such as those involving the spa industry. This observation is especially apparent
in categories of the 2007 Spa Industry Study that include day spa revenue,number of total spa visits, and the employment data, which have all decreased
during the study years of 2005 to 2007. No industry can afford to ignore how economic factors directly impact their operation, regardless of what the "market heads" are "spinning". Spas must be sensitive to the changing economic vitality of their unique demography, if they aren't already doing so. There is an economic downturn and it's impacting many industries across-the-board,
including the spa industry.
Terry Herman
August 29, 2007
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