A Day of Good News for Spas

2 thoughts on “A Day of Good News for Spas

  1. Eric Light

    Hello Susie,

    I enjoy reading your blog, and while I don’t mean to pour too much water on the parade, I thought you might want to hear some disturbing results from a recent 500 consumer survey we did for a client.

    Wellness destinations like Pritikin and Rancho La Puerta are succeeding for 3 reasons; their programs are viewed as medically essential and their market is the relatively unscathed socio-economic group that still has a fair amount of disposable income. The 3rd reason is the one most critical to the success or failure of the day spa industry. The post recession consumer has a different set of expectations. They will consider going to a resort spa for the experience, a wellness/lifestyle destination for transformation, but will increasingly expect that their local spa focus on results and put the pamper/relax/rejuvenate mindset aside. The numbers were very clear. If consumers perceive that there is a good skin care program in place, the repeat visit number jumps to 11 -16 instead of 2 – 3 times a year.

    Another challenge the day spa industry faces is how to win back the clients the consumer giants like L’Oreal, P&G, and Aveeno have aggressively lured away with their anti-spa messages.

    Finally, even though the stock market is moving upwards, profit numbers are due more to cost cutting than an increase in sales. Cost cutting means a continued loss of jobs. Until unemployment comes down (and that is not forecasted to start happening before 2011), day spa revenues will continue to be negatively impacted.
    Just thought I’d share

    Eric Light

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