The Tourism Observatory for Health, Wellness and Spa proudly announces the first benchmarking study on Spa and Wellness Tourism, titled the International Wellness & Spa Tourism Monitor. This path making report was prepared in cooperation with Danubius Hotels Group and enjoyed endorsement from over 50 global companies (e.g. Mandarin Oriental, Thermarium), and national and international organizations (e.g. PATA, ETC or Hungarian Bath Association).
The IWSTM 2013 collected information from 50+ countries and from 420+ spa and wellness facilities. The key objective was to identify the role tourism and tourists play at various spa and wellness facilities worldwide.
The Report provides industry insights for operators, managers, investors and advisors. Data and information gathered is introduced and discussed in the Report in two major sections:
By spa and wellness facility types.
By regions (Africa, The Americas, Asia, Australia/NZ and Europe)
We believe that it is essential to highlight: spa and wellness facilities can come in numerous ways and types. The demand for these establishments is rather varied, too!
Not only facility typology was taken into consideration but IWSTM also introduces data and information by three major demand segments, local customers, domestic tourists and international tourists. No operator or investor should assume that ‘tourists’ or ‘customers’ can be uniform. The characteristics of the three major demand segments can and do differ greatly.
The IWSTM 2013 Report provides intelligence regarding the following key themes:
What is the structure of travelling for health (facilities and services)?
Market Position of Facilities
Facility (types) Becoming Popular?
Services Becoming Popular?
Business Trend Forecasts for 2013 (number of customer and first time customers, average revenue per customer, number of treatments sold per visit)
Business Trend Changes for 2012/2011 (number of customer and first time customers, average revenue per customer, number of treatments sold per visit)
Typology and Motivation of Customers
Popular Services & Treatments
Main Sender Countries (where tourists come from)
Local Customers
International Tourists
Domestic Tourists
Qualification of Spa and Wellness Staff
Local and International Marketing Cooperation
Signature Treatments & Product Packaging
The Tourism Observatory for Health, Wellness and Spa (TOHWS) an international intelligence initiative was created in 2012 by renowned advisors and researchers. The Health Tourism Worldwide is the full successor of TOHWS.
To us travel for health means travel for total health - either for medical purposes, or for wellness, holistic, spiritual, spa or medical wellness. This holistic approach to health makes HTWW the only global initiative looking at every aspect of the spectrum.
Copyrighted Material
Information, tables, and charts introduced in this document are the intellectual property of Health Tourism Worldwide. It may not be distributed or copied in any way or form, neither in parts nor as a whole without prior permission.
This report would not have been possible without the cooperation with the Danubius Hotels Group.
www.danubiushotels.com
László Puczkó Melanie Smith Ivett Sziva
Industry Partners
This benchmark research is endorsed by the following prestigious companies and organizations.
We thank you for your support!
Africa
The Americas
Europe
Health, Wellness, Spa & Tourism
There is so much happening out in the market. The number of products and services being associated with health, wellness and spa is proliferating. The concept is being stretched and we can observe saturation in many markets (e.g. What do you think the label of ‘Car Spa’ may cause to the spa industry?).
We believe that the spectrum of travelling for health is very wide and it has many variations. The terminologies applied can differ greatly continent-by-continent or even country-by-country, culture-by-culture. That was one of the key reasons why TOHWS decided to launch its global initiative. The chart below provides us with a structured model of how we see the world of health travel and where wellness and spa may take part of that.
GlobalHealthTourismServiceGrid
The industry knows relatively little about the role of tourism and tourists in wellness and spa demand. With the IWSTM we made an attempt to map the likely importance of tourism. Also we collected information about services and trends so we can provide wellness and spa facility managers, operators and investors with key benchmarking information.
Classification of Participating Facilities
The world of spa and wellness facilities is very wide and colourful. One of the key objectives of the research is to provide a better picture of this universe.
(please specify)
Lifestyle oriented spa/retreat/resort
Spa and wellness facilities are typically private organizations except in Central and Eastern Europe, where thermal/mineral baths are typically publically owned!
Participating facilities could define themselves in terms of market position: budget, mid-level and upmarket/luxury.
Market Position of Facilities
The regional differences in terms of facility types are quite clear: the thermal/mineral baths of Central and Eastern Europe are typically mid-range operations.
The differences between the key market groups, ie local customers, domestic/intra-country and foreign/international tourists are really prevalent and significant in almost every key part of the monitor data.
The results are introduced by the three different market groups which are colour coded for better understanding:
This sign indicates that the information in that section provides an overall view
The detailed crosstabs by spa types are introduced in the Appendix.
Local Customers
Domestic Tourists
International Tourists
We applied the categorisation of the International Spa Association for the type of wellness and spa customers. According to ISPA:
Core customers are those who believe that spa/wellness is important part of their lifestyle
Mid-level customers are interested in learning about spa and wellness but have limited commitment
Peripheral customers enjoy spa and wellness services, but altogether show little interest. These figures show one of the key strategic and benchmarking findings of IWSTM. International visitors show strong dedication to what they are looking for, whereas domestic visitors are moderatelybeingdedicatedtospaandwellness.
This quite significant difference between the three major demand segments leaves both managers and investors with serious decisions to be made. It does not seem to be an easy conceptual and management issue to develop and run facilities and services for a very mixed clientele. Expectations, activities and interests of local customers and foreign visitors are not the same. This anticipation and experience is confirmed by the global benchmark data.
Type of customers
TOHWS team has seen in many occasions that wellness and spa operations that let local customers into facilities primarily built for tourists struggled to provide services and quality at the expected levels!
Type of customers
Two regions, America and Europe show level of market maturity in terms of local customer mix. The majority of local customers show at least moderate interest for wellness and spa services, with relatively high propensity of core customers, too.
Very interestingly core level local customers are not (yet?) important in Africa and in Australia/New Zealand. It has to be added that especially in Australia the holistic wellness market is very developed but that does not concentrate in spas!
Type of customers
According to IWSTM The Americas are the most mature market since over 30% of domestic travellers are considered to be core customers who believe that wellness and spa are important part of their lifestyle.
Interestingly Asia, Africa and Europe the intracountry/domestic demand is characterised by mid-level customers. The demand mix is particularly dominated by this segment in Europe.
Type of customers
All assumptions are confirmed by the data describing international tourists, i.e. most of them are core customers. Australia/New Zealand is the only exception (most likely due to distances).
We have to note that the somehow unexpected findings about Australia/New Zealand is not only because of the long distances (and high transportation costs), but to the very difference nature of the wellness (and less spa oriented) supply.
Asia
Australia / New Zealand Europe
Motivations of customers
The key motivations of local customers, domestic and international tourists tend to show similarities, but still, several and quite important differences can and have to be highlighted.
Foerign tourists Domestic tourists Locals
Prices and therapists are (not that surprisingly) important mainly for local customers. The location and the availability of signature treatments are significant for tourists and especially for international tourists. Previous experience is not determining factor for international tourists, which means that they are visiting new sites and facilities and show low level of loyalty.
Motivations of customers
Wellness and spa customers in The Americas, Asia and Europe have the widest set of motivations. Local customers are typically motivated by wellness and spa treatments and services in most regions, with numerous exceptions.
Europeans seem to be the least motivated by brands and reputation, which on the contrary, is very important in Africa, Asia and Australia/New Zealand. Location plays a relatively important role for local customers in Europe.
Motivations of customers
Looking at the motivations of domestic tourists we can see that brands and reputation play significant role in The Americas, Asia and in Australia/New Zealand, and to certain degree in Europe, too.
Treatment and services on offer are genuinely influencing the demand in Europe and in Africa. Location show more significant impact on domestic tourists in The Americas and in Asia (than we could see in the case of local guests).
Motivations of customers
International tourists are dominantly motivated by two factors, i.e. the treatments and services offered by, and the brand and reputation of wellness and spa facilities.
In every region, this double motivation factor set is the determinant. Still, as seen in the other two guest types, brand and reputation plays a relatively less important role in Europe.
Location as a determinant also needs to be highlighted for most regions.
Popular services
Popular services are where we can see the three guest groups being the most similar. Also not unexpectedly, massages are the most popular services on offer in wellness and spa facilities.
Medical services/treatments
Spiritual programmes/workshops (e.g. New Age/Esoteric)
for LOCAL customers for DOMESTIC tourists for FOREIGN tourists
Saunas and steamrooms are not that significant for international tourists, but they show a growing interest in medical services at wellness and spa facilities. Interestingly as we saw it before, lifestyle-oriented facilities are getting popular, but this is not case for lifestyle programmes and workshops!
Popular services
The most popular services are the massages in every region. The demand, however, is more fragmented in Asia and in Europethan intheotherregions. Facilitieshavetoofferwider range of services there.
The popularity of services is not independent of local resources. That is why pools are very popular in Europe, since many European countries enjoy high number of thermal springs.
Europe has also developed a very sophisticated sauna/steam room culture, especially thinking of the German/Austrian saunarituals or the widely available saunasin Northern Europe.
Popular services
It seems that for domestic tourists nothing else is important but massages! This is definitely the case in most regions analysed.
Any operator or investor in Europe has to understand that international tourists are looking for wide range of services (although massages are evidently the most important services). Pools are essential in Europe, too and we see the relative importance of medical services (often based on natural healing resources, e.g. thermal springs).
Australia / New Zealand
Popular services
Foreign tourists look for less number of services than domestic tourists. Evidently massages are the most popular services, but body treatments are also relatively popular.
Europe is different again. Pools and medical services are similarly important for foreign tourists. In Australia/New Zealand apart from pools, body-mindspirit programmes are showing relative importance.
Americas
Australia / New Zealand
Source countries for tourism of customers
Although it is possible to have a total list of most important sender countries (see inset) but it is more telling to look at the key countries by regions: USA, UK, Germany, Russia, China, Austria and France are the leading wellness and spa tourism generating countries.
Length of stay
Business performance is very much linked to the average length of stay at wellness and spa facilities. This is one of the planning and management areas that is often overlooked! Local customers spend rather short time at wellness and spa facilities (2/3 spend less than 2 hours).
Sadly the short average length of stay also characterizes domestic and to a lesser extend foreign visitor segments, too. Data show a typical pattern of weekender domestic tourists and one week long stay international tourists.
Length of stay
One-two hour visits dominate the wellness and spa demand in every region. Although in Asia and in Europe even shorter stays are not uncommon. Still, the importance of short visit customers is less influential in Europe (where the figures are under 60%).
Significant percent of customers stay for a whole day at wellness and spa facilities in Africa, The Americas and in Europe. The dependence on short stay customers is very significant in The Americas!
Length of stay
Domestic tourists show different patterns in terms of their lengthof stay looking at the 5 regions. Australia/NewZealand reported the highest percentage of lack of domestic visitors for wellness and spa.
Europe has widest variation of length of stay, where two week+ stays are possible. Still, weekend visits dominate the demand.
Africa Americas
Asia
Australia / New Zealand Europe
Length of stay
The figures for international visitors indicate that internationaltouristsoftenvisitwellnessandspafacilitiesbut would not stay overnight. This is due to the varying nature of facilities, where many types do not provide accommodation (e.g. thermal baths).
Wellness and spa facilities are popular attractions to many foreign tourists to a destination. That is why the stay for short(er) periods of time, too. Still the one week period seem to be the most typical length in most regions.
Asia
Australia / New Zealand
Complementary
products and services of customers
There are heated industry discussions about with what kind of other services can wellness and spa be packaged together. Somehow unexpectedly business events were mentioned as the one that can most likely be complemented with wellness and spa.
Conferences, congresses, business meetings
Religion/spiritual sites and events
The first position of business events is very much questions since conference and meeting organizers had to recognize that participants of business events and congresses may not want to socialize with colleagues or bosses in a wellness facility or in a spa (or in the sauna!). Business events often organized in wellness or spa hotels and resorts. The use of wellness and spa facilities, however, is rather low.
Weddingsandhoneymoons,orgolfortheseahavetraditionallybeenstrong‘allies’ for wellness and spa services. Local specialities are still important, e.g. ski and spa (during the skiing season) is a very competitive package.
Mountain locations, adventure and eco activities have recently become interesting alternatives and partners for wellness and spa facilities and services.
Complementary products and services of customers
Elements of Packages
Nr 1
The regional comparison of popular complementary products show varying focus points to some degree. Golf is the second most important in Africa and only the 4th in Europe.
Conferences, congresses, business meetings Wedding/ honeymoon
Adventure activities Events & Festivals
Nr4 Sea Events
Nr5
Conferences , congresses, business meetings
Events & Festivals
Adventure activities Events & Festivals
Culture & Heritage Culture & Heritage
Culture & Heritage Sea Golf
Religion & spiritual sites and events Eco activities Sea
Adventure as a combination is influential in The Americas (especially in Central and South America), whereas eco activities are gaining growing importance in Austalia/New Zealand.
Accreditation of facilities
Accreditation or certification are two of the serious business questions many service providers have been considering.
The main objective of accreditation is to ensure certain level of quality based on the pre-approved protocols, which define how any element of the service would fit the whole picture. Some 50% of IWSTM participants have already gone through some kind of accreditation process.
Based on our research it seems that more and more wellness and spa facilities seek for accreditation or certification. These accreditations can come either from state (initiated) organizations or third party companies and organizations (that are specialized to accreditation/certification).
IWSTM participants named the following types of accreditation organizations:
National bodies
Health ministries
National accreditation boards
State led medical/wellness association
Ecolabels
Tourism authorities
Country industry associations
International initiatives, e.g.:
ISO standards
ISPA
ESPA
Hotelstars Europe
One of the key challenges is how to apply general standards like ISO to the wellness and spa industry? Some initiatives, such as the one from the European Spa Association (ESPA) EuroSpa Med or Wellness were specially created for a certain type of wellness or spa facility, e.g. thermalbaths. Still, the industry is lacking global set of standards, but many believe that it is not needed at all.
Signature treatments
Signature treatments and services are essential elements of creating unique and competitive brand and customer experiences. IWSTM data show that every third wellness and spa facility has already created at least one signature treatment or service.
From the word cloud we can see that most signature treatments can come in two major forms. They are either rituals, which are complex packages consisting of several treatments or very focused massages, facial or body treatments. Here are the key development trends by analysed by every region.
Africa
The Americas
Asia
Australia/New Zealand
Europe
Very diversified: rituals, massages, detox treatments based on local ingridients
Mainly rituals, based on global brands, plus energizing massages, welcome packages
Mainly complex rituals (e.g. wraps, massages, scrubs, facials). My spa experiences (special massage, treatments in own villas), as well as energetizing treatments are usual, based on local products, specialities
Mud and bath therapies based on local resources as well as underwater massages
Complex rituals and special massages, facial treatments based on local resources (herbs), mudpacks, and baths
Local Customers
Business changes 2012/2011
Global recession did not leave the wellness and spa demand unaffected. Facilities reported close-to-zero increase in the main business indicators for 2012 over 2011. Still, the relative growth of first time local customers can be considered as really good news!
Number of first time customers?
Average revenue per customer?
Number of customers using spa/wellness treatments, programmes?
Number of customers (altogether)?
Average length of stay per visit?
Number of treatments sold per visit?
Europe experienced the worst performance in 2012 over 2011 since most indicators were either stagnating or decreasing. Africa and Australia/New Zealand, on the contrary showed healthy growth regarding local cusromers, especially in customer numbers. Indicators also show that the average revenue per customer grew at higher rate than the number of treatments sold, i.e. the average revenue per treatment per customer had better results than one year before.
Average revenue per customer?
Number of treatments sold per visit?
Average length of stay per visit?
Number of customers using spa/wellness treatments, programmes?
Number of first time customers?
Number of customers (altogether)?
Business changes 2012/2011
Figures for local customer and for domestic tourist show remarkable similarities, which is again linked to the economic recession in 2011 and 2012. Still the moderate growth of average revenue per customer shows signs of slow recovery.
Average revenue per customer?
Number of customers (altogether)?
Number of first time customers?
Number of customers using spa/wellness treatments, programmes?
Number of treatments sold per visit?
Average length of stay per visit?
Those wellness and spa facilities that cater for tourists, too, seemingly had a better year than those concentrating on local customers only. Even in Europe, where the general picture is not positive, the results from domestic tourism are better. Domestic/intra-country tourists had a rather positive contribution to business performance in The Americas, in Australia/New Zealand, and Africa’s figures indicate steady growth of domestic wellness and spa oriented tourists!
Average revenue per customer?
Number of treatments sold per visit?
Average length of stay per visit?
Number of customers using spa/wellness treatments, programmes?
Number of first time customers?
Number of customers (altogether)?
Business changes 2012/2011
In spite of all that economic trouble, international tourism for wellness and spa services showed a relatively good performance! Number of customers, number of treatment and revenues as well could grow.
of customers using spa/wellness treatments, programmes?
Number of first time customers?
Number of customers (altogether)?
Number of treatments sold per visit?
Average length of stay per visit?
One might find unexpected, but as in many other aspects of the economy, Africa showed remarkable growth in international tourism performance in 2012. Even in Europe, where local and domestic demand had a negative zero result, international tourism achieved relatively good results.
Average revenue per customer?
Number of treatments sold per visit?
Average length of stay per visit?
Number of customers using spa/wellness treatments, programmes?
Number of first time customers?
Number of customers (altogether)?
Business Forecasts for 2013
2013 seems to bring great news in terms of first time visitors, since those who come to wellness and spa facilities for the first time outnumbers other key growth factors.
Average length of stay?
Number of treatments sold per visit?
Average revenue per customer?
Number of customers (altogether)?
Number of customers using spa/wellness services?
Number of first time customers?
The forecast by regions shows a bright year for The Americas in terms of customer growth, whereas facilities in Australia and New Zealand will welcome high number of first time customers.
Average revenue per customer?
Number of treatments sold per visit?
Average length of stay per visit?
Number of customers using spa/wellness treatments, programmes?
Number of first time customers?
Number of customers (altogether)?
& Domestic Tourists
Altogether 43% of all spa & wellness customers are considered to be tourists, i.e. operators and investors need to take the needs and expectations of tourists into serious consideration. Spa and wellness facilities can count on tourists in 2013 in terms of length of stay and treatments sold. This is in contrast with what is forecasted for local customers!
Business Forecasts for 2013
Average length of stay?
Number of treatments sold per visit?
Average revenue per customer?
Number of first time customers?
Number of customers (altogether)?
Number of customers using spa/wellness services?
Average revenue per customer?
Number of treatments sold per visit?
Average length of stay per visit?
Number of customers using spa/wellness treatments, programmes?
Number of first time customers?
Number of customers (altogether)?
In terms of visitor numbers Europe and Asia can count on spa and wellness tourists, which can provide a relief to Europan facilities, which are still affected by the recession in Europe.
Clear message to spa and wellness operators. If they want or need to have local customers to their tourism facilities they should think of family oriented and aco-minded facilities
The product width is widest in Europe and The Americas, i.e. developers and managers from these markets can think of the most types of spa and wellness services, but with significant differences in regional focus points. Family and ecoorientation are important on these markets, but natural (healing) resources will enjoy special attention in The Americas, but much less of in Europe (since it is already more established there).
Europe
Africa shows a very different direction from the other regions and Australia seems to pay special attention to longevity!
Facilities Becoming Popular
Domestic travellers show similar patterns to local customers, which makes product development and facility management easier. Still, wellness hotels and destination spas are more; sport & fitness resorts are less popular among them.
Note: anti-ageing or longevity seem to be important services, but travellers may not choose tovisit spa and wellness facilities that are specialized to such treatments!
Facilities Becoming Popular
There is little similarity between the projections for the five regions: except family orientation which seems to be the most likely direction everywhere, except in Australia, where eco-orienation is the clear leading trend. Africa
The regional differences in terms of facility types are quite clear: baths of Central and Eastern Europe are typically mid-rande operations.
Facilities Becoming Popular
Great to see that the market is moving on from the standard wellness hotels and spa hotels which were the leading facilities some 5 years ago.
As of 2013 destination spas are taking the lead and became the most attractive facilities for international tourists.
International tourists can also be attracted by spas based on natural (healing) resources. Eco-spas and wellness facilities have also gained significant role in the last couple of years.
Hint: look for how similarities and differences in terms of facility types and service offer! Popular service concepts can be adapted (and not copied!) to various spa and wellness facility types!
Services
Becoming Popular
International tourists are very sophisticated and do know rather well what they are looking for. Make sure you avoid spa or wellness washing (e.g. labelling your services something which actually it is not)!
Not only the range of facilities attracting foreign tourists differ greatly, but tourists also look for very different facilities region-byregion.
Local Customers
There is a clear shift in the market to natural resources with proven impacts and evidence. This is particularly interesting, since in many parts of the world these resources have (not) yet been identified or tested for healing properties.
Therapies based on natural resources with proven benefits (e.g. thermal water, mud)
Products/services based on local resources/traditions
Occupational/corporate wellness
Spiritual programmes/workshops (e.g. New Age/Esoteric)
Fusion treatments (e.g. aquaveda)
Services
Local customers tend to look for services that can provide them with experiences and sensations that are important not only for short term but also has fit the total health concept. They want more than pampering but purchase body-mind-spirit, anti-ageing and longevity oriented services and programmes. This is great news for operators and investors. Spa and wellness facilities based on the total health approach can build firm loyal (and local!) customer base, since longevity and anti-ageing as concepts are meaningful for every age group and segment!
Becoming Popular
Services
Becoming Popular
Operating and investing in spa and wellness in The Americas leaves interested parties with many options, since the market is mature and happily welcomes wide variety of services. The product width is also very wide in Asia and Europe, but there are clear leaders in the market.
America follows a different pattern from the other regions, since longevity programmes are the leading services for local customers. Customers in other regions look more for services based on natural resources. This is partially due to the lack of data, evidence and tradition of how services and treatments based on natural resources can be used in spa and wellness facilities in the Americas.
Services
Becoming Popular
Domestic tourists show a somewhat different interest. Although therapies based on natural resources are clearly the most attractive ones, natural and organic products used in therapies and treatments are also play important role.
Therapies based on natural resources with proven benefits (e.g. thermal water, mud)
Complementary and alternative therapies (e.g. Traditional Chinise Medicine)
Occupational/corporate wellness
Fitness & sports
Fusion treatments (e.g. aquaveda)
Spiritual programmes/workshops (e.g. New Age/Esoteric)
Outpatient medical services
Since family oriented facilities are expected to be popular, lifestyle and anti-ageing services can and should be developed and offered to various segments. Especially if those are based on natural resources!
That is somewhat unexpected that domestic tourists do not find spirituality and fusion therapies and treatments too attractive. Interesting, however that occupational and corporate wellness programmes are more and more combined with travelling away from the workplace.
Services
Becoming Popular
Africa shows an interesting trend: domestic travellers are getting more sophisticated in terms of services (and less in terms of facility interests). In Australia, on the other hand, tourists are attracted by only a few services.
Besides the importance of natural (healing) resources, lifestyle-oriented programmes and treatments are becoming influential in Asia and Europe. Active and anti-ageing also gains importance in Europe together with occupational and corporate wellness services away from the workplace and away from home.
Services Becoming Popular
International tourists seem to be primarily motivated by treatments and therapies that are somehow based on local assets, resources and traditions.
Therapies based on natural resources with proven benefits (e.g. thermal water, mud)
Products/services based on local resources/traditions
Active and anti-ageing/longevity programmes/workshops
Spiritual programmes/workshops (e.g. New Age/Esoteric)
Fusion treatments (e.g. aquaveda)
Natural/organic product-based services
Outpatient medical services
Occupational/corporate wellness
Fitness & sports
Holistic approaches or holism is often considered to be similar or equal to spirituality. This is misunderstanding can lead to unsuccessful operation and/or disappointed customers. Interestingly fusion treatments did not become influential, although it seemed otherwise some years back.
Wellness and spa services that are based or influenced by holistic approaches can really motivate tourists to go on a foreign trip. This include body-mind-spirit, lifestyle-oriented and active or antiageing programmes and workshops.
Global averages could easily hide significant regional differences. International tourists to wellness and spa facilities in The Americas are nothing like the ones in Asia or Europe
The evidence and the traditions. These are the most significant differeneces between therapies based on natural resources (important in the Americas) and resources with natural healing properties (important in Europe or Asia). Providing customers/tourists with sound, proven and reliable evidence can and will make a difference.
Australia / New Zealand
Target markets
Wellness and spa facilities could list their key target markets (note: these can be different from the actual key markets seen in corresponding data!). Information shows that the five regions follow different market targeting strategies.
Local customers are the most important market segment followed by domestic tourists (with the exception of Africa). Local customers represent upto 30% of targeting, i.e. some 70% of customers at wellness and spa facilities are expected to be either domestic or international visitors. Previously could see that the average share of tourists was about 43%, i.e. facilities are working on to attract more tourists!
Target markets are sometimes quite far away from the wellness and spa facilities, e.g. in the case of Africa or Asia. Target markets are the most numerous in Asian and European countries. Africa
Asia
Almost regardless of the region, the same countries are considered to be the key target markets for wellness and spa facilities and services: USA, UK, France, Austria, Germany, Switzerland and Russia.
Regional markets are important in Europe but not in Asia or Africa.
Non-traditional markets are only tertiary markets, but even these can play significant role in a certain country’s or facilities demand. That shows, however, that wellness and spa services are getting more and more popular globally. Africa
Operators and investors in Asia and Europe must know the most about the markets, since they are targeting numerous countries that can differ greatly in terms of expectations, traditions and visitor patterns.
Targeted key segments
One industry rule-of-thumb for many year seems to become an old wisdom. Couples as most important target segments took over the leading position from single women.
Different segments country-by-country Single women
Groups of friends (more than 2 together)
Families with children
Single men
Baby boomers/seniors
Same sex couples
Gen Y
Mother & daugther
Havingacloselookatthedatawecanseethatthewellness andspademandshifted to become a social consumption: couple, families, groups of friends give the majority of the demand. Several other segments, such as GenZ, Less able-bodied customers and mother & baby/child groups seem to be not at all important to operators. This is especially interesting since we know that 50% of the world’s population is under 30 years of age, i.e. GenZ should play much more important role that it actually does nowadays.
Targeted key segments No1
Proper and focused segmentation is essential. This is a key rule for any marketer, manager or developer. And that is why we cannot say that wellness or spa customers are uniform.
Africa Americas
Asia
Australia / New Zealand Europe
Contemporary segmentation is lifestylebased and that is completed with demographic information. Lifestyle-based segmentation, however, is a very much different region-by-region, or even cultureby-culture!
Wellness and spa visits are clear social occasions in Australia/New Zealand, whereas Europe remains to be the most challenging region.
Interestingly one fast growing segment (Single Men) showsignificant,butnotprimaryroleinAfricaandThe Americas. Africa Americas
Asia
Australia / New Zealand
Training of staff
Wellness and spa operators are often accused of employing untrained or educated staff. IWSTM proves that these accusations are not quite true. Most of wellness and spa staff member are either in-house trained or formally trained and also hold a national certification.
In-house trained
Trained, by not certified
Formally trained and certified (national educational programme)
Formally trained, and certified (international educational programme)
Training of staff
In-house training is the most common form of training for wellness and spa staff member. This is especially the case for the Americas and Australia/New Zealand. Africa Americas
Asia
Europe
Australia / New Zealand
Europe and Asia has the lowest percent of in-house trained staff and other forms of training are more significant on those two regions.
Training of staff
Trainings that are formal in nature but not certified by either a national or an international organization or body are marginally important in every region, but relatively so in Asia.
Africa
Asia
Europe
Americas
Australia / New Zealand
Training of staff
Formal trainings that are certified by a national organization or body are important form of training wellness and spa personnel, especially in countries where certain training programmes or modules are compulsory by national regulation.
Africa Americas
Asia
Europe
Australia / New Zealand
Australia/New Zealand, Europe and Asia have the highest percent of formally trained staff members who are also certified by a national organization or body.
Training of staff
Relatively low percentage of wellness and spa personnel holds any international certification, the average is about 10%.
Africa Americas
Asia
Europe
Australia / New Zealand
Wellness and spa facilities in Asia and Africa employ the highest number of staff who were formally trained and also hold an international certification
Forms of cooperation
According to IWSTM data most wellness and spa do participate in one or more forms of cooperation aiming at industry representation and/or marketing and development.
It seems that network based cooperations are not yet widespread since only every 5th wellness and spa facility has joined any such initiative.
Government led cooperations tend to mean national tourist boards, chamber of commerce or awellness/ health cluster.
Government or state sponsored cooperation
Thermal Town Association).
Franchises and international spa or wellness brands represent either management or franchise contracts with a wellknown brand or refer to the products that are (exclusively) used in the facility. The participation
Private sector initiatives (and most of the ‘Other forms’) are typically represented by (national) industry associations (and some ‘exotic’ forms of partnerships are also mentioned, such as the European Historical
in international branded networks means either marketing or distribution oriented co-operations.
Should you wish to learn more about where and how the world of health tourism is going look for the second and revised edition of our book titled: Health, Tourism and Hospitality. Wellness, Spas and Medical Travel (published by Routledge, in Q4 2013).
Worldwide coverage, in-depth industry analysis, 40+countries, 50+ case studies
