IWSTM_2013_fullreport

International Wellness & Spa Tourism Monitor 2013

© Health Tourism Worldwide 2019

International Wellness & Spa Tourism Monitor 2013 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).

Resort spa

Hotel spa (urban)

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:  

Clinic

Club spa

Spa hotel/ resort

Airport spa

Day spa

Thalasso hotel/spa

Lifestyle oriented spa

Wellness hotel/ resort

Medical spa

Holistic retreat Mineral springs spa

Destination spa

Medical (spa) hotel

By regions (Africa, The Americas, Asia, Australia/NZ and Europe) By spa and wellness facility types.

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 Domestic Tourists demand segments, local customers, domestic tourists and international tourists. No operator or investor should assume that International Tourists ‘tourists’ or ‘customers’ can be uniform. The characteristics of the three major demand segments can and do differ greatly.

Local Customers

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) 2

  

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.

László Puczkó

Melanie Smith

Ivett Sziva

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

3

Table of Contents Industry Partners

4

Health, Wellness, Spa & Tourism

9

Present Classification of Participating Facilities

10

Market Position of Facilities

11

Type of Customers

13

Motivations of Customers

17

Popular Services

21

Source Countries for Tourism

25

Length of Stay

26

Complementary Products and Services

30

Accreditation of Facilities

32

Signature Treatments

33

Business Changes 2012/2011

34

Forecasts Business Forecasts for 2013

37

Facilities Becoming Popular

39

Services Becoming Popular

45

Target Markets No1

51

Target Markets No2

52

Target Markets No3

53

Targeted Key Segments No1

54

Targeted Key segments No2

56

Training of Staff

57

Forms of Cooperation

62

Health, Tourism and Hospitality.

Wellness, Spas and Medical Travel

63

4

Industry Partners This benchmark research is endorsed by the following prestigious companies and organizations.

We thank you for your support!

Africa

The Americas

5

AustralAsia

Europe

6

Europe

7

Global Companies & Organizations

Media Partners

8

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.

Global Health Tourism Service Grid Medical

Nutrition & Detox Programmes

Cosmetic Surgery

Medical (Surgical)

Medical (diagnostic)

Rehabilitation & Recuperation

Medical (noninvasive)

Occupational Wellness

Therapeutic Recreation

Medical/ Structured Wellness

Pampering

Sport & Fitness

Beauty treatments

Leisure & Recreation

New Age

Yoga & meditation

Spiritual

Holistic

Services

Hospitals & Clinics

Health Motivated Travel

Thalassotherapy,

Dentistry

Speciality outpatient facilities

MediSpas Thermal Treatment Centres/ Mineral Baths

Club & Day Spas

Destination Spas

Wellness

Longevity Centres

Medical /Health Cities

Hotels, Resorts, Cruises, & Hotel/ Resort/ Cruise Spas

Health Village

Leisure centres

Ashrams & Retreats

Meditation Centres

Facilities

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.

9

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.

Resort spa

26.8%

Hotel spa (urban location)

21.2%

Spa hotel/resort

17.3%

Day spa

14.2%

Other (please specify)

13.1%

Wellness hotel/resort/centre

12.6%

Medical spa

11.2%

Mineral springs spa/bath

9.5%

Destination spa

9.2%

Medical (spa) hotel/resort/centre

7.8%

Holistic retreat

6.1%

Lifestyle oriented spa/retreat/resort

5.6%

Thalasso hotel/spa/centre

Publicprivate partnership

3.6%

Airport spa

2.2%

Club spa

2.2%

Clinic

2.0%

Public organization

Private organization

10

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

Africa

The Americas

Asia

Australia / New Zealand

Europe

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.

11

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

Local Customers

Domestic Tourists

International Tourists

The detailed crosstabs by spa types are introduced in the Appendix.

12

We applied the categorisation of the International Spa Association for the type of wellness and spa customers.

Local customers According to ISPA: Core 17%

Mid-level 48%

Domestic/Intra-country customers Core 11.8%

Peripheral 21.3%

Mid-level 66.9%

Foreign/International customers Peripheral 11% Core 48% Mid-level 41%

is confirmed by

 Core customers are those who Peripheral believe that spa/wellness is important 35% 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 moderately being dedicated to spa and wellness.

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 Type the global benchmark data.

TOHWS team of has seen in many occasions that wellness and spa operations that let local customers into customers facilities primarily built for tourists struggled to provide services and quality at the expected levels!

13

Local Customers

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.

Africa

Americas

Asia

Australia / New Zealand

Europe

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!

14

Domestic Tourists

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.

Africa

Americas

Asia

Australia / New Zealand

Europe

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.

15

International Tourists

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).

Africa

Americas

Asia

Australia / New Zealand

Europe

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.

16

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.

32.5% 28.0% 29.8%

Treatments & Services

25.2% 26.0% 23.2%

Brand and Reputation Location Signature treatment/service/ritual Facilities Curiosity Architecture Price Approved by a certain quality label Loyalty programme Therapists Spa/wellness Shop Previous experience Technology Fashion Design

13.9% 12.0%

5.3% 5.3% 3.0% 2.0% 4.6% 5.0% 5.3% 4.6% 3.0% 4.6% 3.3% 1.0% 0.7% 2.6% 5.0%

2,6% 3.0% 1,3% 2.0% 1.0% 2.0% 1,3% 3.0% 0.7% 1.0% 1.3% 0.7%

9.3%

7.9%

6.0% 6.0%

0.7% 1.0% 0.0% 0.0% 1.0% 1.3% 0.0% 1.0% 0.0%

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.

17

Local 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.

Motivations of customers Africa

Americas

Treatments & Services

Treatments & Services

Asia

Australia / New Zealand

Treatments & Services Treatments & Services

Europe

Treatments & Services

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.

18

Domestic Tourists 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.

Motivations of customers Africa

Americas

Treatments & Services

Treatments & Services

Asia

Australia / New Zealand

Treatments & Services

Europe

Treatments & Services

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).

19

International Tourists 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.

Motivations of customers

Americas

Asia

Australia / New Zealand

Treatments & Services

Africa

Treatments & Services

Europe

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.

Treatments & Services

Location as a determinant also needs to be highlighted for most regions.

20

Popular services 3% 1% 2% 3% 0% 6% 7%

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.

5%

6%

1% 3% 2% 2% 1% 3%

2%

Medical services/treatments

6% 3% 4%

4%

Spiritual programmes/workshops (e.g. New Age/Esoteric)

3% 6%

4% 5%

Lifestyle programmes/workshops (e.g. stress management, nutrition) Body-Mind-Spirit/Holistic programmes (e.g. yoga) Complementary and alternative treatments

53%

Fitness & sport services

61%

57%

Facial and other beauty treatments Body treatments (other than massages) Massages

11%

Pool(s)

13% 8% 9%

for LOCAL customers

Saunas/steamrooms of any kind

4%

3%

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!

21

Local Customers

Popular services

The most popular services are the massages in every region.

The demand, however, is more fragmented in Asia and in Europe than in the other regions. Facilities have to offer wider range of services there.

Africa

Americas

Fitness & sport services

Fitness & sport service

Asia

Australia / New Zealand

Treatments & Services

Fitness & sport services

Europe

Fitness & sport service

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.

Fitness & sport services

Europe has also developed a very sophisticated sauna/steam room culture, especially thinking of the German/Austrian sauna rituals or the widely available saunas in Northern Europe.

22

Domestic Tourists

Popular services

It seems that for domestic tourists nothing else is important but massages! This is definitely the case in most regions analysed.

Americas

Asia

Australia / New Zealand

Fitness & sport services

Africa

Europe

Fitness & sport services

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).

23

International Tourists

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.

Africa

Asia

Americas

Australia / New Zealand

Fitness & sport services

Europe

Fitness & sport services

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.

24

Although it is possible to have a total list of most important

Source sender countries (see inset) but it is more telling to look at countries the key countries by regions: USA, UK, Germany, Russia, China, Austria and France are the leading wellness and spa for tourism tourism generating countries. of Africa Americas customers

Asia

Australia / New Zealand

Europe

25

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).

One day

11.3%

3-5 hours

21.2%

1-2 hours

56.3%

Less than one hour

11.3%

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.

Less than one hour

1% 1% 29%

1-2 hours 3-5 hours One day

1% 2%

1 night

1%

5% 6%

2 nights

7%

3%

5-7 nights

18%

5%

8-10 nights

2%

11-14 nights

3% 1%

15 or more nights

2% 1%

Do not have such visitors

18% 8% 9%

3 nights

4 nights

16%

11%

6%

3% 5% International tourists

Domestic tourists

26

36%

Local Customers

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%).

Africa

Americas

Asia

Australia / New Zealand

Europe

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!

27

Domestic Tourists

Length of stay

Domestic tourists show different patterns in terms of their length of stay looking at the 5 regions. Australia/New Zealand reported the highest percentage of lack of domestic visitors for wellness and spa.

Africa

Americas

Asia

Australia / New Zealand

Europe

Europe has widest variation of length of stay, where two week+ stays are possible. Still, weekend visits dominate the demand.

28

International Tourists

Length of stay

The figures for international visitors indicate that international tourists often visit wellness and spa facilities but would not stay overnight. This is due to the varying nature of facilities, where many types do not provide accommodation (e.g. thermal baths).

Africa

America

Asia

Australia / New Zealand

Europe

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.

29

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

60%

Wedding/honeymoon

51%

Events & Festivals

41%

Culture & Heritage

34%

Golf

28%

Sea

22%

Adventure activities

19%

Mountain activities

17%

Eco activities

14%

Religion/spiritual sites and events

11%

River/lake activities

8%

Skiing

8%

Horse riding

7%

Air travel

3%

Safari

3%

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.

Weddings and honeymoons, or golf or the sea have traditionally been strong ‘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.

30

Complementary products and services of customers Elements of Packages

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.

Africa

The Americas

Asia

Wedding/

Wedding/

Wedding/

honeymoon

honeymoon

honeymoon

Nr 2

Golf

Conferences, congresses, business meetings

Nr 3

Conferences, congresses, business meetings

Nr4

Nr5

Nr 1

Australia

Europe

Conferences, congresses, business meetings

Conferences , congresses, business meetings

Conferences, congresses, business meetings

Wedding/ honeymoon

Events & Festivals

Adventure activities

Events & Festivals

Culture & Heritage

Culture & Heritage

Sea

Events

Culture & Heritage

Sea

Golf

Adventure activities

Events & Festivals

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.

31

Accreditation of facilities based on the which define service would 50% of IWSTM gone through 50% process.

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 22% pre-approved protocols, Nethow any element of the worki Signature ng Accreditreatmen fit the whole picture. Some tation t participants have already Market position 32% some kind of accreditation 54%

Based on our research it seems that more Key Elements of Brand Experience 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. thermal baths. Still, the industry is lacking global set of standards, but many believe that it is not needed at all.

32

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.

22%

Accreditation

50%

Networki ng

Signature treatment

Market position

32% 54%

Key Elements of Brand Experience

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

Very diversified: rituals, massages, detox treatments based on local ingridients

The Americas

Mainly rituals, based on global brands, plus energizing massages, welcome packages

Asia

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

Australia/New Mud and bath therapies based on local resources as well as underwater Zealand massages Europe

Complex rituals and special massages, facial treatments based on local resources (herbs), mudpacks, and baths

33

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?

2.5%

Average revenue per customer?

1.3%

Number of customers using spa/wellness treatments, programmes?

1.3%

Number of customers (altogether)?

1.1%

Average length of stay per visit?

0.7%

Number of treatments sold per visit?

0.3%

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.

-0.6% -0.1%

Number of treatments sold per visit?

Average length of stay per visit?

2.9% 2.4% 3.2% 2.5%

-0.3%

Average revenue per customer?

-2.0%

1.3%

2.9%

1.1% 1.0% 1.8%

-1.5% -1.2%

Number of customers using spa/wellness treatments, programmes?

0.1%

1.3%

2.1%

1.0% 0.9%

Number of first time customers?

Number of customers (altogether)?

Europe

Australia

3.8% 2.9%

-1.7% 1.5% 1.9%

Asia

34

America

Africa

6.1% 3.7%

6.0%

3.8% 4.7%

Domestic Tourists

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?

1.8%

Number of customers (altogether)?

1.5%

Number of first time customers?

1.4%

Number of customers using spa/wellness treatments, programmes?

1.1%

Number of treatments sold per visit?

0.8%

Average length of stay per visit?

0.2%

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!

-0.2%

Average revenue per customer?

2.3% 0.0% 0.1% 0.3%

Number of treatments sold per visit?

0.1%

5.0%

1,1% 0,9% 1.7%

3.0%

0.8%

2.5% 0.1% 0.4%

Number of first time customers?

Australia

2.2%

-0.6%

Number of customers using spa/wellness treatments, programmes?

Europe

4.0%

2.2%

Average length of stay per visit?

Number of customers (altogether)?

3.2% 3.2%

1.3%

3,1%

-1.2% 2.0%

Asia

35

America

Africa

4.1%

4.7% 5.0% 4.7% 5.0%

International Tourists

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.

Average revenue per customer?

2,7%

Number of customers using spa/wellness treatments, programmes?

2.4%

Number of first time customers?

2.4%

Number of customers (altogether)?

2.2%

Number of treatments sold per visit?

1.7%

Average length of stay per visit?

1.2%

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.

2.1% 2.7%

Average revenue per customer?

Number of treatments sold per visit?

3.1%

4.0% 4.0%

1.8% 2.0%

0.4%

1.9%

6.6%

0.6%

1.8% 1.4% 1.6% 1.9% 0.9% 2.1% 1.2%

Average length of stay per visit?

Number of customers using spa/wellness treatments, programmes?

Number of first time customers?

Europe

Australia

1.8% 0.7%

36

3.2% 4.7%

1.9% 1.8%

2.5%

Asia

8.4%

2.0%

0.0%

Number of customers (altogether)?

4.0%

America

Africa

6.9%

Local Customers

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?

0.5%

Number of treatments sold per visit?

1.1%

Average revenue per customer?

1.2%

Number of customers (altogether)?

2.2%

Number of customers using spa/wellness services?

2.9%

Number of first time customers?

3.3%

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.

37

Local Customers

-0.6%

2.9% 2.8% 2.4%

Average revenue per customer?

-0.7%

0.4%

2.1% 1.5% 1.1% 1.4%

Number of treatments sold per visit?

Average length of stay per visit?

0.8% 0.7%

-0.1%

0.0%

1.0%

-0.4%

1.4%

Number of customers using spa/wellness treatments, programmes?

2.7% 0.0% Number of first time customers?

3.4%

5.4% 4.9%

5.0% 5.9%

0.1% 0.3% Number of customers (altogether)?

1.3% 1.6%

Europe

Australia

Asia

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America

Africa

2.6%

4.7%

Domestic Tourists &

International Tourists

Altogether 43% of all spa & wellness customers are Business considered to be tourists, i.e. operators and investors need to take the needs and expectations of tourists into serious Forecasts consideration. Spa and wellness facilities can count on for 2013 tourists in 2013 in terms of length of stay and treatments sold. This is in contrast with what is forecasted for local customers!

Average length of stay?

5.4%

Number of treatments sold per visit?

4.6%

Average revenue per customer?

3.7%

Number of first time customers?

2.3%

Number of customers (altogether)?

2.2%

Number of customers using spa/wellness services?

1.1%

-0.4%

3.2%

Average revenue per customer?

3.0%

-0.5%

Number of treatments sold per visit?

0.1%

4.2%

2.4% 2.1%

0.5% 1.5% 1.4% 0.8% 1.6% 1.4%

Average length of stay per visit?

4.4%

1.8%

Number of customers using spa/wellness treatments, programmes?

5.1%

3.4% 4.1% 3.2%

Number of first time customers?

5.1% 4.7% 5.5%

3.2%

-1.2% Number of customers (altogether)?

Europe

7.9%

Australia

3.9% 3.4% Asia

America

5.3%

Africa

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.

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Local Customers 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

Facilities Becoming Popular

Family spas & wellness facilities

20.6%

Eco-spas & wellness facilities

13.8%

Spas based on natural (healing) resources

8.8%

Sport & fitness resorts/hotels

7.5%

Longevity/anti- or active-ageing centres

7.5%

Spa hotels

7.5%

Wellness hotels

7.5%

Adventure spas & wellness facilities

6.9%

Retreats

5.0%

Spa Living Environments

5.0%

Destination spas

4.4%

Wellness/spa cruises

3.1%

Fusion facilities (e.g. hotel-to-hospital conversions)

2.5%

Dreamscapes/architectural masterpieces

0.0%

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).

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Local Customers

Sport& fitness resorts/hotels

Sport& fitness resorts/hotels

Family spa & wellness facilites

Sport& fitness resorts/hotels

Family spa & wellness facilites

Advanture spa & wellness facilites

Eco- spa & wellness facilites

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Advanture spa & Family spa & wellness facilites wellness facilites Eco-spa & wellness facilites

Advanture spa & wellness facilites

Eco- spa & wellness facilites

Facilities Becoming Popular

Family spa & wellness facilites

Australia / New Zealand Asia

Advanture spa & wellness facilites

Eco- spa & wellness facilites

Sport& fitness resorts/hotels Family spa & wellness facilites

The Americas Africa

Europe

Africa shows a very different direction from the other regions and Australia seems to pay special attention to longevity!

Domestic Tourists

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.

Family spas & wellness facilities

21.3%

Eco-spas & wellness facilities

11.9%

Wellness hotels

11.3%

Spas based on natural (healing) resources

11.3%

Adventure spas & wellness facilities

8.8%

Destination spas

8.1%

Spa hotels

7.5%

Retreats

5.6%

Longevity/anti- or active-ageing centres

5.0%

Wellness/spa cruises

3.1%

Sport & fitness resorts/hotels

2.5%

Spa Living Environments

1.9%

Dreamscapes/architectural masterpieces

1.3%

Fusion facilities (e.g. hotel-to-hospital conversions)

0.6%

Note: anti-ageing or longevity seem to be important services, but travellers may not choose to visit spa and wellness facilities that are specialized to such treatments!

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Domestic Tourists

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

Sport& fitness resorts/hotels

Asia

Family spa & wellness facilites

Family spa & wellness facilites

Advanture spa & wellness facilites

Eco- spa & wellness facilites

Advanture spa & wellness facilites

Americas

Australia / New Zealand

Sport& fitness resorts/hotels

Family spa & wellness facilites

Advanture spa & wellness facilites

Eco- spa & wellness facilites

Eco-spa & wellness facilites

Advanture spa & Family spa & wellness facilites wellness facilites

Europe

The regional differences in terms of facility types are quite clear: baths of Central and Eastern Europe are typically mid-rande operations.

Family spa & wellness facilites

Advanture spa & wellness facilites

Eco- spa & wellness facilites

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International Tourists

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.

Destination spas

15%

Spas based on natural (healing) resources

14%

Eco-spas & wellness facilities

13%

Wellness hotels

13%

Spa hotels

10%

Family spas & wellness facilities

9%

Retreats

8%

Longevity/anti- or active-ageing centres

6%

Adventure spas & wellness facilities

5%

Sport & fitness resorts/hotels

2%

Fusion facilities (e.g. hotel-to-hospital conversions)

2%

Spa Living Environments

2%

Dreamscapes/architectural masterpieces

1%

Wellness/spa cruises

1%

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!

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International Tourists

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)!

Africa

Americas

Australia / New Zealand

Family spa & wellness facilites

Advanture spa & wellness facilites

Eco- spa & wellness facilites

Eco-spa & wellness facilites

Europe

Sport& fitness resorts/hotels

Advanture spa & wellness facilites

Family spa & wellness facilites

Eco- spa & wellness facilites

Not only the range of facilities attracting foreign tourists differ greatly, but tourists also look for very different facilities region-byregion.

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Sport& fitness resorts/hotels

Family spa & wellness facilites

Asia

Advanture spa & wellness facilites

Eco- spa & wellness facilites

Family spa & wellness facilites

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)

24.4%

Lifestyle-oriented programmes/workshops (e.g. stress management, nutrition)

13.8%

Complementary and alternative therapies (e.g.

Traditional Chinise Medicine)

11.3%

Active and anti-ageing/longevity programmes/workshops

9.4%

Body-Mind-Spirit/Holistic programmes/workshops (e.g. yoga)

9.4%

Fitness & sports

8.1%

Outpatient medical services

5.0%

Natural/organic product-based services

5.0%

Products/services based on local resources/traditions

5.0%

Occupational/corporate wellness

4.4%

Spiritual programmes/workshops (e.g. New Age/Esoteric)

2.5%

Fusion treatments (e.g. aquaveda)

1.9%

Local customers tend to look for services that can provide Services them with experiences and sensations that are important Becoming not only for short term but also has fit the total health concept. They want more than pampering but purchase Popular 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!

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Local Customers

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.

Africa

Americas

Fitness & sport

Fitness & sport

Asia

Australia / New Zealand

Europe

Fitness & sport

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.

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Domestic Tourists

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.

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Domestic Tourists Therapies based on natural resources with proven benefits (e.g. thermal water, mud)

28.1%

Lifestyle-oriented programmes/workshops (e.g. stress management, nutrition)

13.8%

Active and anti-ageing/longevity programmes/workshops

11.3% 8.8%

Natural/organic product-based services

8.1%

Products/services based on local resources/traditions Body-Mind-Spirit/Holistic programmes/workshops (e.g. yoga)

8.1%

Complementary and alternative therapies (e.g.

Traditional Chinise Medicine)

7.5% 5.6%

Occupational/corporate wellness

3.8%

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!

3.1% 1.3% 0.6%

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.

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Domestic Tourists

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.

Americas

Asia

Australia / New Zealand

Fitness & sport

Africa

Fitness & sport

Europe

Fitness & sport

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.

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International Tourists

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)

28.1%

Products/services based on local resources/traditions

16.3%

Body-Mind-Spirit/Holistic programmes/workshops (e.g. yoga)

12.5%

Complementary and alternative therapies (e.g.

Traditional Chinise Medicine)

11.9%

Lifestyle-oriented programmes/workshops (e.g. stress management, nutrition)

10.6%

Active and anti-ageing/longevity programmes/workshops

9.4%

Spiritual programmes/workshops (e.g. New Age/Esoteric)

4.4%

Fusion treatments (e.g. aquaveda)

3.1%

Natural/organic product-based services

2.5%

Outpatient medical services

0.6%

Occupational/corporate wellness

0.6%

Fitness & sports

0.0%

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.

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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.

International Tourists

Services Becoming Popular

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 Africa

Americas

Asia

Australia / New Zealand

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.

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International Tourists

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Target markets No1

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.

Africa

Americas

Asia

Australia / New Zealand

Europe

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!

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Target markets No2

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

Americas

Asia

Australia / New Zealand

Europe

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.

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Target markets No3

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

Americas

Asia

Australia / New Zealand

Europe

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.

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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.

18%

Couples

27% 30% 16% 15%

Single women

20% 14%

Different segments country-by-country

8% 15% 15%

Groups of friends (more than 2 together)

20% 15% 10%

Families with children

8% 12% 8%

Single men

11% 5% 6%

Baby boomers/seniors

4% 1%

Same sex couples

3% 1% 1% 2%

Gen Y

4% 1% 7%

Mother & daugther

1% 0% Segment 3

Segment 2

Segment 1

Having a close look at the data we can see that the wellness and spa demand shifted 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.

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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.

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Targeted key segments No2

Interestingly one fast growing segment (Single Men) show significant, but not primary role in Africa and The Americas.

Americas

Asia

Australia / New Zealand

Mother & daughter

Africa

Europe

Mother & daughter

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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.

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

In-house trained Trained, by not certified Formally trained and certified (national educational programme) Formally trained, and certified (international educational programme)

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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

Australia / New Zealand

Europe

Europe and Asia has the lowest percent of in-house trained staff and other forms of training are more significant on those two regions.

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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

Americas

Asia

Australia / New Zealand

Europe

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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

Australia / New Zealand

Europe

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.

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Training of staff

Relatively low percentage of wellness and spa personnel holds any international certification, the average is about 10%.

Africa

Americas

Asia

Australia / New Zealand

Europe

Wellness and spa facilities in Asia and Africa employ the highest number of staff who were formally trained and also hold an international certification

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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.

22%

It seems that network based cooperations are not yet widespread since only every 5th wellness and spa 50% facility has joined any such initiative.

Accreditation

Networki ng

Signature treatmen t

Market position

32% 54%

Government led cooperations tend to mean national Key Elements of Brand tourist boards, chamber of commerce or a wellness/ Experience health cluster.

0% 10% 20% 30% 40% 50% 60% 70% Government or state sponsored cooperation Private sector initiative Other forms

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

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

0% 10% 20% 30% 40% 50% 60% 70% A franchise An international spa/wellness brand An international branded marketing network Other

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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

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