How Resilient is the Spa Industry?
How Resilient is the Spa Industry?Susie Ellis, SpaFinder Insider
It’s been a few weeks since I attended the ISPA (International Spa Association) conference in Las Vegas. I have had some time to reflect on the days I spent there, visiting the expo exhibits, attending sessions, and catching up with many industry colleagues (which is the best part). I always learn things at ISPA and this year was no exception. But as I reflect on the various insights garnered, the most important conclusion is that our industry is really quite resilient.
There is no doubt that economic turbulence was on everyone’s mind. ISPA did a good job in trying to address some of these concerns through their keynote speakers and general sessions. What impressed me the most, however, was how robust the conference was in terms of the number of exhibitors and attendees. It is true that they didn’t report any all-time records, however, they got pretty darn close – and that to me is the real story.
When so many other industries are declining by 20 percent, 30 percent, and even 40 percent, workers are being laid off around the country, and we hear of large businesses shutting down altogether, it is pretty encouraging to see how buoyant the spa industry has been. The recent surveys that we have done at SpaFinder support the same conclusion – there have been shifts, however many spas are still doing good business.
I remember back to 9/11 when the country was “stunned” and travel and spa-ing were affected along with everything else. A few months later we published an issue of Luxury SpaFinder magazine with the cover line, “Spas for Challenging Times.” It was one of our best selling issues ever! Although 9/11 did affect revenues for many businesses, looking back, spas recovered quite quickly.
As I reflect on why our industry has such resiliency, I can’t help
but think about one fundamental change that has taken place. Spas have as much to do with "wellness" as they do with “pampering.” Since we know that the number one reason people go to spas is “to relax and de-stress” (stress is at the root of almost 70 percent of doctor visits), it should come as no surprise that in these stressful times we are truly the very thing people need - and seek.**
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If you wish to be put on a list that automatically sends my blog posts to your email, just let dulcy.gregory@spafinder.com know and she will add you to that list. Thanks so much!
posted by Susie Ellis at Tuesday, November 25, 2008
4 Comments:
Well said, Susie. Many of the spas I have spoken with are doing good business and well-managed spas are even posting highest revenue to date.
In these troubling economic times, stress is more prevalent than ever and the healing touch of spas is needed now more than ever.
Let's acknowledge the spa therapists who consistently give everyday, not only on a professional level but from their hearts as well.
Susie, I have to disagree with you. The number of spas going out of business is astounding. Customer traffic is down across the board that will only increase in the coming months. Funnily enough I actually called some of the spas listed in New York and 3 out of the top 15 had their phone lines disconnected...a clear sign!
I also attended ISPA and have a very different opinion. There were many exhibitors, however, attendance was definitely down. Companies, including big brands like Marriott and Hyatt used to have lots of attendees at ISPA but this year each was limited to very few. Furthermore ISPA continues to deliver reports based on surveys that show the "HEALTH" of the spa industry and always show's it as "STABLE". Those are heavily skewed and biased!
The North American spa industry is in recession. Spa is still viewed by most as a discretionary item and that fact will have a major impact on the industry over the next 2 years. That being said, this adjustment is long overdue.
The strong will survive and thrive into the future.
Susie, thanks for the blog. It gave me a ray of hope and a definite marketing strategy idea for the coming year. Although my total sales at my 4 room wellness center (massage, facials and body treatments) in Chicago were down in 4th qtr. 2008 (services +5% and retail -30%); my sales over last year (retail 0% and services +25%) were up.
I did trim by opening the store 1 hr. later and have cut a few staff hours here and there, and also introduced on call shifts. I also trimmed my retail supply way down.
I do have to say though, that as far as Anonymous 2 who said that attendance was down at the ISPA Conference this year...isn't that discretionary income? If local and big spas are trying to trim costs, that would be the first thing to go in my book. I don't see that as a sign of the recession, as I see it as a sign of being smart and money conscious.
We just need to be smart in trimming costs and do great marketing!
Susie,
I have to disagree with you as well. Being a represenative for a skincare line, I have seen a DRAMATIC difference in this industry. Clients are producing significantly lower than 2 years ago. In the resort sector, management is being laid off left and right and the duties are being left to the service providers.
As Americans have less and less discretionary income, a luxury market such as ours is going to further decline.
There are fewer attendants and vendors attending the ALL of the industry trade shows.
The only way to survive in this business in for us to reinvent HOW we do business.
It's going to take years for us to recouperate from this.
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