IWSTM_2018_final_thermal_data

International Wellness, Spa & Travel Monitor 2018

th 5 International

Wellness, Spa & Travel Monitor 2018

In cooperation with

International Wellness, Spa & Travel Monitor 2018

Meet the TOHWS Team!

Contents Industry Partners IWSTM 2018 Tourist & Demand Wellness, Spa & Travel 2017 Demand Distribution Targeted Segments Key Travel Motivations Popular Wellness & Spa Services Guest Spending Growth Potential: Facilities Growth Potential: Services Market Growth Forecast

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László Puczkó

Melanie Smith

The Tourism Observatory for Health, Wellness and Spa (TOHWS) is an international intelligence initiative created in 2012 by renowned advisors and researchers.

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 TOHWS 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 The Tourism Observatory for Health, Wellness and Spa (http://thetourismobservatory.org). It may not be distributed or copied in any way or form, neither in parts nor as a whole without prior permission.

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International Wellness, Spa & Travel Monitor 2018

Thank You! Danke schön! Merci! ¡Gracias! Спасибо! Dziękuję!

This benchmark report was prepared in cooperation with Resources for Leisure Assets, and with endorsement from local and regional as well as global companies. We thank you for your support and consent!

We say very special thanks to country partners and to partners from the thermal/hot spring industry

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International Wellness, Spa & Travel Monitor 2018

IWSTM 2018 Global Intelligence

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International Wellness, Spa & Travel Monitor 2018

IWSTM 2018 The Tourism Observatory for Health, Wellness and Spa proudly announces its 5th benchmark study on the relationships between spa and wellness services and travel and tourism, titled the International Wellness, Spa & Travel Monitor. The IWSTM provides industry insights for investors, operators, planners, policy makers as well as industry analysts.

Spa & Wellness Operators’ Spectrum Clinic Healthy hotel Resort spa Hotel spa (urban location)

Club spa Airport spa Thalasso hotel/spa/centre

Spa hotel/resort

Lifestyle oriented…

Day spa

Holistic retreat

Wellness…

Medical (spa)…

Medical spa Destination spa Mineral springs spa/bath

We kept the 17 different wellness and spa service operation types which we have been using for the previous rounds of this benchmark. Using such a wide typology means that we can highlight the complexity of the spa and wellness industry and indicate the vast array of service providers. Most of the data presented in IWSTM 2018 comes from hotels and resorts or stand-alone (thermal) baths, from 45+ countries. This year we paid very special attention to baths and spas which are built on thermal resources or hot springs.

There are three major demand segments for this study: • Local or walk-in guests • Domestic or intra-country guests • International visitors.

The characteristics of the three major demand 5 segments can differ greatly.

International Wellness, Spa & Travel Monitor 2018

Role of Tourists in Total Demand Travelling for wellness or spa still is a very dynamic market. The number and variety of products and services associated with health, wellbeing, wellness and spa are extremely complex.

The hospitality industry is moving away from viewing spas and wellness centres as separate units, and now tends to apply a wellbeing-oriented approach to the whole operation.

Over the years, our data consistently show that the role of tourists is significant in wellness and spa facilities (other than day spas or club spas), since 2 out of 3 guests are non-locals.

On the other hand, this is certainly not true in the same way for every single market (or country). We continue our efforts of creating market and country specific market intelligence.

Working together with industry partners in the data collection we can highlight relevant differences in key markets, namely: North-America, Asia-Pacific, Europe, Spanish-speaking countries (Spain and Central and South America, excluding Brazil), etc. We have started to publish country specific information about Colombia, Costa Rica, Italy and Poland.

Note that data from German-speaking countries (Germany, Austria and Switzerland) and Russian-speaking countries (e.g.

Russia, Central Asia) are from the 4th edition of IWSTM (2017).

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International Wellness, Spa & Travel Monitor 2018

Role of Tourists in Total Demand Global 2018*

North- Asia-Pacific America

Europe

Spanishspeaking countries

Germanspeaking countries**

Russianspeaking countries**

Global 2017

Foreign guests

36%

15%

51%

15%

29%

15%

5%

30%

Domestic guests

35%

45%

14%

60%

46%

65%

10%

50%

Local guests

29%

40%

35%

25%

25%

20%

85%

20%

*Note: ¾ of the total sample used English language for communication, i.e. the ”Total” figures represent all the answers. Language-specific data is shown only if significant differences in the answers were indicated. ** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

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International Wellness, Spa & Travel Monitor 2018

Role of Tourists in Total Demand Global 2018*

Colombia Costa Rica

Poland Italy

Thermal

Thermal

(Europe)

(Spanishspeaking countries)

Global 2017

Foreign guests

36%

15%

50%

5%

25%

33%

10%

30%

Domestic guests

35%

60%

28%

75%

47%

53%

38%

50%

Local guests

29%

25%

22%

20%

28%

14%

52%

20%

*Note: ¾ of the total sample used English language for communication, i.e. the ”Total” figures represent all the answers. Language-specific data is shown only if significant differences in the answers were indicated .

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International Wellness, Spa & Travel Monitor 2018

Role of Tourists in Total Demand Global Data

%

90 80 70 60 50 36 40 35 30 29 20 10 0

Language Regions

Regional Data

Pilot Countries

85 60 50 30 20

51 45 40 15

60

65

35 14

75 50

46 25 15

Foreign Guests

20 15

Thermal

29 25 10 5

Domestic Guests

25 15

28 22

47

20

28 25

53 33 14

5

Local/Walk-in Guests

Note*: ”Global” figures represent all the answers combined. ** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

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52 38

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International Wellness, Spa & Travel Monitor 2018

Wellness, Spa & Travel Markets 2017 There is a lot of talk about how wellness should be available to everybody. It may be true for some countries, but it is certainly not the case for every country and every segment. There are certain markets where wellness and spa facilities are positioned predominantly in the upmarket and luxury brackets. This result is still in line with the traditional assumption, i.e. that the industry tends to cater to high(er) end guests, tourists or vacationers.

Interestingly, wellness and spa services are more affordable in those markets where there is a strong supply of thermal and hot spring baths and facilities. Many countries can learn from how the democratisation of wellness benefits can happen building on natural and cultural resources. It has to be noted that thermal facilities are not necessarily linked to accommodation units, but many tend to be a stand-alone operation. Most of these thermal facilities are not linked to or affiliated with any international brand, chain or management company, but are run as a single operation.

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International Wellness, Spa & Travel Monitor 2018

Market Position SpanishGermanRussianspeaking speaking speaking countries countries** countries**

Global 2017

35%

43%

67%

55%

60%

40%

40%

33%

35%

25%

25%

17%

-

10%

Global 2018*

NorthAmerica

Asia-Pacific

Europe

Upmarket/ luxury

60%

82%

66%

15%

Mid-level

32%

12%

24%

Budget

8%

6%

10%

*Note: ¾ of the total sample used English language for communication, i.e. the ”Total” figures represent all the answers. Language-specific data is shown only if significant differences in the answers were indicated. ** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

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International Wellness, Spa & Travel Monitor 2018

Market Position Global 2018*

Colombia Costa Rica

Poland Italy

Thermal

Thermal

(Europe)

(Spanishspeaking countries)

Global 2017

Upmarket/ luxury

60%

30%

28%

45%

55%

38%

19%

55%

Mid-level

32%

30%

39%

50%

45%

62%

44%

35%

Budget

8%

40%

33%

5%

0%

37%

10%

*Note: ¾ of the total sample used English language for communication, i.e. the ”Total” figures represent all the answers. Language-specific data is shown only if significant differences in the answers were indicated .

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International Wellness, Spa & Travel Monitor 2018

Market Position Global Data

%

80 70 60 60 50 40 32 30 20 8 10 0

Language Regions

Regional Data

Pilot Countries

Thermal

82 66

55

67

60 43

35 10

24 12 6

10

25 15

40

33

40 35 25

40 30

50 45 39 33 28

55 45 31

62 38

19

17 5

0

Upmarket/Luxury

Mid-level

44 37

0

Budget

Note*: ”Global” figures represent all the answers combined. ** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

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International Wellness, Spa & Travel Monitor 2018

Guest Segmentation Gaining a better understanding of the current demand is a key task to any wellness and spa operation. In the international wellness tourism market such market insights can help both developers and operators.

The segmentation information show some interesting differences between various markets: •

Baby-boomers play the most important role in North-America;

•

Gen X play a dominant role in Poland and in Costa Rica;

•

Gen Y continues to gain higher market share which is partially in line with the growing earning potential of such age groups;

Important insight is the increasing role of Gen Z since most standard spa and wellness operators do not offer much (or anything) for this age group.

Thermal resources are mainly popular for Baby Boomers and Gen X guests.

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International Wellness, Spa & Travel Monitor 2018

Guest Segmentation Post-war cohort (born before 1946)

Global 2018*

North America

Asia-Pacific

Europe

Spanishspeaking countries

Germanspeaking countries**

Russianspeaking countries**

Global 2017

10%

10%

13%

14%

17%

13%

38%

17%

35%

30%

22%

36%

27%

23%

47%

31%

25%

30%

26%

24%

25%

32%

10%

27%

20%

25%

29%

16%

24%

22%

5%

18%

10%

5%

10%

10%

7%

10%

Baby boomers (born 1946-1964)

Gen X (born 1965-1975)

Gen Y (born 1976-1995)

Gen Z (born 1996-)

7%

Note*: ”Global” figures represent all the answers combined. ** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

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International Wellness, Spa & Travel Monitor 2018

Guest Segmentation Global 2018* Post-war cohort (born before 1946)

Colombia Costa Rica Poland

Italy

Thermal

Thermal

(Europe)

(Spanishspeaking countries)

Global 2017

10%

14%

15%

5%

11%

13%

12%

17%

35%

21%

18%

15%

30%

39%

35%

31%

25%

33%

43%

55%

32%

20%

25%

27%

20%

24%

19%

20%

20%

19%

20%

18%

10%

8%

5%

5%

7%

9%

8%

7%

Baby boomers (born 1946-1964)

Gen X (born 1965-1975)

Gen Y (born 1976-1995)

Gen Z (born 1996-)

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International Wellness, Spa & Travel Monitor 2018

Guest Segmentation Global Data 60

55

50

45 36

40 35 %

Language Regions

Regional Data

30 25 20

27 31

30

26 22

24

10

13

14

17 10

Thermal

55 42

39

33

32 23 13

Pilot Countries

27 25

21 14

17 10

31 30 21 15 17

15

11

13

5

10 0

Post-war cohort

Baby boomers

Gen X

Gen Y

Gen Z

Note*: ”Global” figures represent all the answers combined. ** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

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35 25 12

International Wellness, Spa & Travel Monitor 2018

Targeted Segments Segmentation now combines information about the segments’ demographic and various other qualities.

The combination of segmentation information can make wellness and spa facilities more focused in their targeting efforts.

IWSTM 2018 highlights the complexity of marketing.

Segments travelling for wellness and spa services can be different country-by-country, as it is indicated already in the IWSTM 2017 findings.

Markets show a high degree of differentiation in terms of target segments. Still, it seems that the most typical segments for wellness and spa services are ‚Couples’ and ‚Groups of friends’.

Wellness and spa providers need to pay more attention to those guests who may not be core wellness guests, but show growing interest and demand for healthy options at a hotel, resort, spa or bath.

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International Wellness, Spa & Travel Monitor 2018

Targeted Segments

Global 2018 #1 - Couples

Europe

German-speaking markets**

Russian-speaking markets**

Spanish-speaking markets

#1 – Families with children

#1 – Couples

#1 - Families with children

#1 - Different country-by-country

#2 – Single women

#2 – Couples

#2 – Gen Y

#2 – Couples & Groups of friends

#2 - Couples

#3 – Couples

#3 – Guests looking for healthy options

#3 – Single women #3 – Gen Y

#3 - Mother & Baby

Global 2017

North America

Asia-Pacific

#1 - Different country-by-country

#1 - Couples

#1 – Groups of friends

#2 – Groups of friends

#2 – Couples

#2 – Groups of friends

#3 – Guests looking for healthy options

#3 - Mother & Baby

#3 - Single women

** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

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International Wellness, Spa & Travel Monitor 2018

Targeted Segments

Global 2018

Colombia

#1 - Couples

#1 - Families with children

#2 – Groups of friends #3 – Guests looking for healthy options

#2 - Hotel guests looking for healthy services #3 – Group of friends

Costa Rica #1 - Families with children #2 - Hotel guests looking for healthy services #3 – Group of friends

Poland #1 - Couples #2 - Families with children

#3 – Group of friends

Thermal (Europe)

Thermal (Spanishspeaking countries)

Italy #1 - Different countryby-country #2 - Hotel guests looking for healthy services

#1 - Couples #2 – Groups of friends #3 – Families with children

#1 – Hotel guests looking for healthy services #2 – Families with children #3 – Group of friends

#3 – Couples

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International Wellness, Spa & Travel Monitor 2018

Key Travel Motivations We traditionally provide an extensive list of possible motivations for guests that IWSTM partners can choose from.

Developers of wellness and spa facilities often allocate significant funds to acquire a property with unique location and settings, invest in breathtaking interior design or sophisticated technology hoping to gain market advantage and to provide added value to their investment.

IWSTM 2018 confirms that there are three main motivation factors for wellness and spa guests: •

Treatments & Services;

•

Brand & Reputation; and

•

Location.

These data suggest that investments as well as operations need careful considerations, since guests’ attention and spending can effectively be influenced only by a few deciding factors.

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International Wellness, Spa & Travel Monitor 2018

Key Travel Motivations

Global 2018 Local Demand – Therapists

Domestic Demand – Location

International Demand – Location

Global 2017 Local Demand Treatments & Services Domestic Demand – Brand & Reputation International Demand – Location

North America #1 Local Demand – Treatments & Services Domestic Demand – Treatments & Services International Demand – Brand & Reputation

Asia-Pacific #1 Local Demand – Treatments & Services Domestic Demand – Treatments & Services

International Demand – Brand & Reputation

Europe #1

German-speaking markets #1**

Russian-speaking markets #1**

Spanish-speaking markets #1

Local Demand – Treatments & Services

Local Demand – Therapists

Local Demand – Quality certification

Local Demand – Treatments & Services

Domestic Demand – Location

Domestic Demand – Previous experience

Domestic Demand – Treatments & Services International Demand – Treatments & Services

International Demand – Location

** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

International Demand – Location

Domestic Demand – Treatments & Services International Demand – Brand & Reputation

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International Wellness, Spa & Travel Monitor 2018

Key Travel Motivations

Poland #1 Global 2018

Local Demand – Therapists

Domestic Demand – Location International Demand – Location

Colombia #1 Local Demand – Prices & Treatments Domestic Demand – Architecture & Brand International Demand – Architecture & Brand

Italy #1

Costa Rica #1 Local Demand – Treatments & Services Domestic Demand – Design International Demand – Location

Local Demand – Signature treatments Domestic Demand – Location & Signature treatment International Demand – Location & Treatment & Services

Local Demand – Treatments & Services Domestic Demand – Treatments & Services International Demand – Treatments & Services

Thermal (Europe) #1 Local Demand – Treatments & Services Domestic Demand – Mixed motivations International Demand – Treatments & Services

Thermal (Spanishspeaking countries) #1 Local Demand – Treatments & Services Domestic Demand – Treatments & Services International Demand – Mixed motivations

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International Wellness, Spa & Travel Monitor 2018

Popular Wellness & Spa Services One of our previous benchmark studies, i.e.

IWSTM 2015 suggested that international guests who are the representatives of the core wellness demand would prefer a wide range of services during their wellness-motivated travels.

IWSTM 2018 highlights the overwhelming importance of treatments and services based on natural and other local resources. These seem to be the ones guests really look for and enjoy.

This trend which has been confirmed by the last three editions of IWSTM benchmark data suggests that investors as well as operators need to look at not only the resources and assets they use for wellness and spa facilities, but also at how existing services and treatments are communicated.

Natural, local, traditional are the qualities guests are motivated by and happy to pay for, and are even willing to travel long distances to find them.

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International Wellness, Spa & Travel Monitor 2018

Popular Wellness & Spa Services

Global 2018 #1

Global 2017 #1

Walk-in/Local – Natural elements based therapies (e.g. thermal water)

Local Demand Natural, organic product based services

Domestic Demand – Natural elements based therapies (e.g. thermal water)

Domestic Demand – Thermal experiences

International Demand – Services based on local resources/traditions

International Demand – Services based on local resources/traditions

North America #1 Local Demand – Natural/organic product-based services Domestic Demand – Services based on local and or natural resources/traditions International Demand – Services based on local resources/traditions

Asia-Pacific #1

Local Demand – Complementary therapies Domestic Demand – Complementary & Natural resourcesbased therapies International Demand – BodyMind-Spirit/Holistic workshops (e.g. yoga)

Europe #1

German-speaking markets #1**

Russian-speaking markets #1**

Local Demand – Natural elements based therapies (e.g. thermal water)

Local Demand – Natural elements based therapies(e.g. thermal water)

Local Demand – Natural elements based therapies (e.g. thermal water)

Domestic Demand Natural elements based therapies (e.g. thermal water)

Domestic Demand – Thermal experiences

Domestic Demand – Spiritual workshops

International Demand – Services based on local resources/traditions

International Demand – Natural elements based therapies (e.g. thermal water)

International Demand – Healthy options/services during stay

** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

Spanish-speaking markets #1 Local Demand – Natural elements based therapies (e.g. thermal water) Domestic Demand – Natural elements based therapies (e.g. thermal water) International Demand – Natural elements based therapies (e.g. thermal water)

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International Wellness, Spa & Travel Monitor 2018

Popular Wellness & Spa Services

Thermal #1 (Europe)

Global 2018 #1 Colombia #1 Walk-in/Local – Natural elements based therapies (e.g. thermal water) Domestic Demand – Natural elements based therapies (e.g. thermal water) International Demand – Services based on local resources/traditions

Local Demand – Services based on local and or natural resources/traditions

Costa Rica #1

Local Demand – Natural elements based therapies (e.g. thermal water)

Domestic Demand – Natural elements based therapies (e.g. thermal water)

Domestic Demand – Services based on local resources/traditions

International Demand – Natural elements based therapies (e.g. thermal water)

International Demand - Natural/organic product-based services

Poland #1

Italy #1

Local Demand – Fitness & Sport

Local Demand – Natural elements based therapies (e.g. thermal water)

Domestic Demand – Fitness & Sport International Demand – Body-MindSpirit/Holistic workshops (e.g. yoga)

Domestic Demand – Thermal experiences International Demand – Natural elements based therapies (e.g. thermal water)

Local Demand – Natural elements based therapies (e.g. thermal water) Domestic Demand – Natural elements based therapies (e.g. thermal water) International Demand – Natural elements based therapies (e.g. thermal water)

Thermal (Spanishspeaking countries) #1 Local Demand – Natural elements based therapies (e.g. thermal water) Domestic Demand – Natural elements based therapies (e.g. thermal water)

International Demand – Natural elements based therapies (e.g. thermal water)

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International Wellness, Spa & Travel Monitor 2018

Guest Spending Realistic data of guest spending on wellness and spa services are essential benchmark information. Not only operators but also developers need to look at the representative guest spending patterns.

The data for spending indicates significant growth, which in this question was influenced mainly, but not only by the North American market. Interestingly, the spending pattern among the different segments is the most balanced in the North American market.

Data about spending on thermal demand reconfirms that the typical spending on traditional thermal resources-based services is relatively low. These facilities are not luxury or high class spas or resorts, but more like affordable thermal spas and baths, often without any accommodation. Thermal and other natural resources represent a more democratised wellness offer since these are accessible to most market segments.

There is no surprise that the international demand for wellness and spa services during travel represents the highest spending market segment.

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International Wellness, Spa & Travel Monitor 2018

Guest Spending (EUR/person) Global 2018*

North America

Asia-Pacific

Europe

Foreign guests

161

172

160

127

97

132

160

120

Domestic guests

145

170

140

99

79

125

180

96

Local guests

91

154

88

42

54

65

180

57

SpanishRussianGermanspeaking speaking speaking countries countries** countries**

Global 2017

Note*: ”Global” figures represent all the answers combined. ** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

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International Wellness, Spa & Travel Monitor 2018

Guest Spending (EUR/person) Global 2018*

Colombia Costa Rica

Poland Italy

Thermal

Thermal

(Europe)

(Spanishspeaking countries)

Global 2017

Foreign guests

161

154

188

150

163

75

85

120

Domestic guests

145

51

168

150

163

58

54

96

Local guests

91

26

104

80

83

12

14

57

Note*: ”Global” figures represent all the answers combined. ** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

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International Wellness, Spa & Travel Monitor 2018

Guest Spending (EUR/person) Global Data 200 180 160 160 145 140 120 € 100 91 80 60 40 20 0

172 170 154

160 140

120 96 57

Language Regions

Regional Data

88

Pilot Countries

180 160 127

132

99

125 65

42

Foreign Guests

154 98 79 54

Domestic Guests

188 168

150

Thermal

163

104 80 51 26

83

75 58 12

Local/Walk-in Guests

Note*: ”Global” figures represent all the answers combined. ** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

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85 54 14

International Wellness, Spa & Travel Monitor 2018

Growth Potential for Facilities There are two areas that represent growth for wellness and spa facilities. One can be associated with the natural or free-from movement. Ecologically conscious, natural and local resources-based facilities are indicating significant growth potential in most parts of the world. The other direction is the family orientation. The IWSTM 2012 has already identified this market shift. Many European markets, especially Germany or Austria already have strong positions and offers in this market. It is anticipated that developers interested in wellness and spa developments would need to open to the family market. This market, however, represents a rather different set of expectations as well as operational requirements than that of the traditional luxury market.

Domestic and international travellers may not represent the same interests. Developers, operators and marketers therefore need to consider the likely differences in the service-mix and how these are communicated. Interesting note that technologyspecific developments may bring no additional growth potential to wellness and spa facilities.

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International Wellness, Spa & Travel Monitor 2018

Growth Potential for Facilities

Asia-Pacific #1 Global 2018 #1

Local Market – Ecospas and wellness facilities Domestic Market – Family spas and wellness facilities International Market – Eco-spas and wellness facilities

Global 2017 #1 Local Market – Family spas and wellness facilities Domestic Market – Family spas and wellness facilities International Market – Family spas and wellness facilities

Europe #1

German-speaking markets #1**

Russian-speaking markets #1**

Spanish-speaking markets #1

Local Market – Wellness hotels & Spas based on natural resources

Local Market – MedSpas

Local Market – Family spas & wellness facilities

Local Market – Family spas & wellness facilities

Domestic Market – Longevity & active ageing centres

Domestic Market – Family spas & wellness facilities

International Market – Spas based on natural (healing) resources

International Market – Family spas & wellness facilities & Facilities based on natural resources

North America #1 Local Market – Family spas & Spas based on natural resources Domestic Market – Sport/fitness themed hotels & hotels with healthy options International Market – Adventure spas & Spas based on natural resources

Local Market – Ecospas and wellness facilities Domestic Market – Family spas and wellness facilities & Retreats International Market – Eco-spas and wellness facilities & Wellness cruises

Domestic Market – Spas based on natural resources & Family spas and wellnsss facilities International Market – Thermal spring based spas/hotels

Domestic Market – Healthy hotels & resorts International Market – Spa Living Environments /Wellness Communities

** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

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International Wellness, Spa & Travel Monitor 2018

Growth Potential for Facilities

Thermal (Spanishspeaking countries) #1 Global 2018 #1

Local Market – Ecospas and wellness facilities Domestic Market – Family spas and wellness facilities International Market – Eco-spas and wellness facilities

Colombia #1 Local Market – Family spas and wellness facilities

Costa Rica #1 Local Market – Eco spas and wellness facilities

Domestic Market – Family spas/wellness facilities

Domestic Market – Eco -spas and wellness facilities

International Market – Eco or Adventure spas and wellness facilities

International Market – Several facility types

Poland #1 Local Market – Hotel spas Domestic Market – Destination spas & Family spas/wellness facilities International Market – Destination spas

Thermal #1 (Europe) Italy #1 Local Market – Thermal spring based spas/hotels Domestic Market – Thermal spring based spas/hotels International Market – Several facility types

Local Market – Several facility types Domestic Market – Spas based on natural (healing) resources International Market – Thermal spring based spas/hotels

Local Market – Thermal spring based spas/hotels & Family spas and wellness facilities Domestic Market – Family spas and wellness facilities International Market – Family spas/wellness facilities & Healthy hotels

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International Wellness, Spa & Travel Monitor 2018

Growth Potential for Services We continue to see the shift towards natural resources and elements-based services and treatments. This trend is clearly linked to the one regarding facility types with growth potential. What was once the most typical service in wellness facilities and spas, i.e. Body-Mind-Spirit oriented treatments, does not carry growth potential anymore. Corporate or workplace wellness combined with travel so far has not yet fulfilled the role the industry anticipated.

How to combine facilities and services with growth expectations is still a clear industry challenge. The investors and operators that can create attractive family-oriented spas or wellness facilities that can combine natural and other local assets and resources will become the most competitive and successful.

Healthy options at spas and wellness facilities, as well as in hotels can create additional demand from the health conscious, but not necessarily wellness tourism-oriented segments.

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International Wellness, Spa & Travel Monitor 2018

Growth Potential for Services

Global 2018 #1

Local Market – Natural elements based therapies (e.g. thermal water)

Domestic Market – Natural elements based therapies

International Market – Healthy options, services during stay

Global 2017 #1 Local Market – Body-MindSpirit/Holistic workshops Domestic Market – Body-MindSpirit/Holistic workshops International Market – Services based on local resources, traditions

Asia-Pacific #1 North America #1 Local Market – Lifestyle oriented workshops

Domestic Market – Services based on natural resources

International Market – Healthy options & Natural resources

Local Market – Occupational/ corporate wellness

Domestic Market – Lifestyle-oriented workshops (e.g. nutrition) & Natural/organic product-based services International Market – Healthy options/services during stay

Europe #1 Local Market – Thermal experiences Domestic Market – Natural elements based therapies (e.g. thermal water) International Market – Natural elements based therapies (e.g. thermal water) & Healthy options/services during stay

German-speaking markets #1** Local Market – Services based on local resources Domestic Market – Complementary, alternative therapies International Market – Healthy options / services during stay

** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

Russian-speaking markets #1**

Spanish-speaking markets #1

Local Market – Healthy options / services during stay

Local Market – Natural elements based therapies (e.g. thermal water)

Domestic Market – Healthy options / services during stay

Domestic Demand – Natural elements based therapies (e.g. thermal water)

International Market – Healthy options / services during stay

International Market – Natural elements based therapies (e.g. thermal water)

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International Wellness, Spa & Travel Monitor 2018

Growth Potential for Services

Global 2018 #1

Local Market – Natural elements based therapies (e.g. thermal water)

Domestic Market – Natural elements based therapies International Market – Healthy options, services during stay

Colombia #1 Local Market – Services based on local or natural resources and traditions Domestic Market – Natural elements based therapies (e.g. thermal water) International Market – Natural elements based therapies (e.g. thermal water)

Costa Rica #1 Local Market – Several different services Domestic Market – Body-MindSpirit/Holistic workshops(e.g. yoga)

International Market – Several different services

Poland #1

Italy #1

Thermal (Europe) #1

Local Market – Services based on local resources/traditions

Local Market – Natural elements based therapies (e.g. thermal water)

Local Market – Natural elements based therapies (e.g. thermal water)

Domestic Market – Natural elements based therapies (e.g. thermal water)

Domestic Market – Natural elements based therapies (e.g. thermal water)

International Market – Natural elements based therapies (e.g. thermal water)

International Market – Thermal experiences

Domestic Market – Complementary, alternative therapies (e.g. TCM) International Market – Services based on local resources/traditions

Thermal (Spanishspeaking countries) #1 Local Market– Natural elements based therapies (e.g. thermal water) Domestic Market – Natural elements based therapies (e.g. thermal water)

International Market – Natural elements based therapies (e.g. thermal water)

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International Wellness, Spa & Travel Monitor 2018

Market Growth Forecast The future is bright for wellness and spa services! Most markets in most parameters reported notable growth for 2018. The highest growth is forecasted from international travellers. It is especially important to note that the number of first time guests is expected to grow at a significant rate. Marketers and operators know very well how important the first experience is in creating loyalty and interest in wellness and spa services as well as for destinations.

Specific markets, e.g. Colombia, Costa Rica or Poland face different challenges. For example, in Costa Rica the industry representatives could not estimate the changes in the incoming market for 2018! Wellness, spa operators and developers need to have more data on guest preferences. Thermal resources, along with the forecasted growth options for thermal facilities and services are estimated to enjoy rapid growth in 2018, especially in Europe. As a contrast, North American industry partners reported moderate growth for 2018, with the exception of first time guests.

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International Wellness, Spa & Travel Monitor 2018

Market Growth Forecast – Local Demand/Walk-in Guests Regions

Language Regions

North- AsiaEurope America Pacific

German- Russian- Spanishspeaking speaking speaking countries** countries** countries

Global Data Performance Expectations

Global Global 2018 2017

Pilot Countries

Thermal

Colombia Costa Rica Poland Italy

Thermal (Europe)

Thermal (Spanishspeaking countries)

Number of guests (altogether)?

7%

6%

6%

8%

6%

6%

10%

5%

11%

6%

4%

7%

16%

10%

Number of first time guests?

8%

8%

8%

10%

7%

8%

10%

8%

13%

6%

5%

10%

15%

16%

6%

4%

7%

7%

6%

10%

8%

13%

6%

5%

15%

10%

15%

3%

3%

2%

5%

2%

10%

8%

12%

4%

0%

2%

12%

8%

4%

4%

4%

5%

6%

2%

n/a

8%

10%

4%

10%

3%

12%

8%

7%

5%

6%

8%

7%

5%

10%

9%

10%

6%

3%

7%

13%

10%

Number of guests 6% using spa/wellness services?

Average length of stay? 4% Number of treatments sold per visit?

Average revenue per guest?

** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

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International Wellness, Spa & Travel Monitor 2018

Market Growth Forecast – Domestic Demand Regions

Language Regions

North- AsiaEurope America Pacific

GermanRussian- Spanishspeaking speaking speaking countries** countries** countries

Global Data Performance Expectations

Global Global 2018 2017

Pilot Countries

Thermal

Colombia Costa Rica Poland Italy

Thermal Thermal (Spanish(Europe) speaking countries)

Number of guests (altogether)?

8%

1%

4%

8%

6%

7%

10%

5%

4%

10%

9%

5%

3%

5%

Number of first time guests?

10%

10%

10%

9%

7%

6%

10%

6%

9%

11%

13%

2%

12%

19%

8%

6%

3%

9%

7%

5%

10%

6%

7%

4%

10%

12%

18%

14%

5%

3%

3%

5%

5%

4%

10%

3%

6%

7%

5%

2%

17%

4%

7%

5%

5%

6%

6%

5%

n/a

4%

5%

8%

12%

3%

20%

3%

9%

7%

6%

10%

7%

5%

10%

8%

9%

0%

17%

7%

12%

13%

Number of guests using spa/wellness services?

Average length of stay?

Number of treatments sold per visit?

Average revenue per guest?

** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

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International Wellness, Spa & Travel Monitor 2018

Market Growth Forecast – International Demand Regions

Global Data Performance

Pilot Countries

Language Regions

German-

Russian-

Spanish-

speaking

speaking

speaking

Spanish-

Global Global

North-

Asia-

2018

2017

America

Pacific

Number of guests (altogether)?

10%

7%

2%

8%

11%

6%

10%

5%

7%

n/a

7%

8%

3%

3%

Number of first time guests?

12%

9%

10%

14%

10%

7%

10%

15%

5%

n/a

14%

13%

4%

25%

Number of guests using spa/wellness services?

9%

7%

2%

9%

11%

4%

10%

6%

7%

n/a

10%

13%

17%

5%

Average length of stay?

6%

4%

3%

6%

8%

3%

10%

2%

3%

n/a

2%

2%

17%

0%

Number of treatments sold per visit?

7%

4%

4%

7%

9%

4%

n/a

3%

5%

n/a

12%

3%

20%

0%

Average revenue per guest?

9%

8%

7%

8%

10%

5%

10%

5%

5%

n/a

13%

10%

19%

5%

Expectations

Europe

Colombia

countries** countries** countries

Costa

Thermal

Rica

** Data from German and Russian-speaking countries are from IWSTM 2017 Report.

Poland Italy

Europe speaking countries

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International Wellness, Spa & Travel Monitor 2018

Resources for Leisure Assets (RLA) RLA was founded upon the principle that a smaller agency can produce high quality, top-flight services and stay accessible, responsive and fully clientcentric. We deliver efficient, effective advice founded on practical experience and up-to-the-minute market intelligence. RLA offers a full range of advisory and management services. We use our Wellbeing Hospitality™ approach to assist with concept, planning and project management of leisure and hospitality assets and destinations. Our international team of industry experts work closely with clients to develop and deliver unique hospitality and wellbeing concepts as well as management solutions that position projects for current and emerging market opportunities.

The Key to a Successful Healthcare Destination Hospitality, tourism and healthcare destinations wishing to capitalise on burgeoning Health, Wellness and Medical opportunities need to address two key questions if they are to become successful: 1. What kind of wellbeing specialisations can be relevant for the project and the destination: from invasive medical interventions to wellness and holistic services?

2. How the identified specialisation would define the whole project: from highly specialized healthcare operations to hospitality projects with broad based wellness services.

Based on our experience destinations and projects often need help answering these questions. The identification of the most suitable specialisation requires cross-industrial market as well as operational intelligence. The right specialisation being that either medical or wellness can ensure the long term market and financial success of destinations and properties.

The RLA Difference Resources for Leisure Assets (RLA) is responsive to ever-expanding opportunities in hotels and resorts, mixed-use real estate developments, active living communities, healthcare centres and destinations. Applying our bespoke wellbeing hospitality® approach we assist with concept, financial planning and project advisory of destinations, hospitals, clinics, hotels and spas catering to the emerging health tourism demands of both medical and wellness travel.

RLA understands the importance of design to the guest experience as much as we recognize the need for economic efficiencies. Our projects incorporate both principles in equal measure to create next-generation hospitality and wellbeing environments and experiences that exceed market and guest expectations.

RLA works to translate ideas and local assets into financially successful projects in the health tourism market. We offer medical tourism destinations, associations and clusters support in: • Conceptualisation & strategy formulation – defining the best conceptual fit and product development direction • Tourism planning – developing plans building on health components for cities, destinations, regions and countries • Organisational and human resource development – setting-up tailor-made training programmes for destination managers and health tourism marketers • Destination Impact Assessment – monitoring the impacts of medical and wellness tourism at destination level indicating the key economic and social impacts • Market benchmarking and competitor analysis – identifying relevant internal and external competition factor www.rla.global

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International Wellness, Spa & Travel Monitor 2018

”There is so much more to wellness than just visiting spas!”

Should you wish to use or reproduce any part of this report, or to learn more details about the findings, or to sign up for IWSTM 2019, please contact us at lpuczko@resourcesforleisureassets.com.

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