Wellness, Spa & Travel Monitor
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.
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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.
László Puczkó Melanie Smith
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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
IWSTM 2018 Global Intelligence
Executive Summary for North-America
• Local and domestic market dominate demand: only 15% are international guests (Global data: 36%, in Asia-Pacific 51%, respectively)
• Dominantly luxury market (82%), whereas in Europe only 15% is luxury and mid-level is 60%
• Lowest capture of GenZ (5%) of all markets (Global average is 10%)
• Single women are still important segment, along with couples and groups of friends – but single women are no longer reported being in the Top 3 segments in other markets
• Motivations are similar globally – treatments & services and brands and reputation of the wellness service provider
• Services and treatments based on natural & local resources are most popular globally
• Average spend ranges between USD 154 (local guests) and USD 171 (international guests) per visit per person. In Europe the respective range is EUR 42 – EUR 127. Thermal visitors’ spend is the lowest at USD 12.
• Highest growth potential in terms of facilities are the family-oriented and natural resources-based spas and wellness facilities. Global demand is growing for eco-oriented spas and wellness centers, whereas in Europe the thermal demand is growing.
• Services & treatments based on natural resources represent the highest growth potential along with offering healthy options for every and not only wellness guests during their visit
• North-American market growth forecast is lower in every category than the global forecast
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.
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 segments can differ greatly.
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).
Role of Tourists in Total Demand
Foreign guests
*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.
Role of Tourists in Total Demand
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.
Market Position
*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.
Market Position
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.
Guest Segmentation
Post-war cohort (born before 1946)
Baby boomers (born 1946-1964)
(born 1965-1975)
(born 1976-1995)
Guest Segmentation
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.
Targeted Segments
#1 - Couples
#2 – Groups of friends
Global 2017
Asia-Pacific
North America
#1 - Different country-bycountry
#1 - Couples
#1 – Groups of friends
#2 – Groups of friends
#2 – Couples
#3 – Guests looking for healthy options
#3 - Mother & Baby
#2 – Single women
#3 - Single women
#3 – Couples
Europe
Spanishspeaking markets
Costa Rica
#1 – Families with children
#1 - Different country-bycountry
#1 - Families with children
Thermal (Europe)
Thermal (Spanishspeaking countries)
#1 - Couples
#2 – Couples
#2 - Couples
#3 – Guests looking for healthy options
#2 - Hotel guests looking for healthy services
#2 – Groups of friends
#1 – Hotel guests looking for healthy services
#2 – Families with children
#3 - Mother & Baby
#3 – Group of friends
#3 – Families with children
#3 – Group of friends
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.
Key Travel Motivations
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.
Popular Wellness & Spa Services
thermal water)
thermal water)
(e.g. thermal water)
(e.g. thermal water)
Thermal (Spanishspeaking countries) #1
(e.g. thermal water)
thermal water) Domestic
elements based therapies (e.g. thermal water)
thermal water)
elements based therapies (e.g. thermal water)
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.
Note*:
Guest Spending (EUR/person)
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.
Popular Wellness & Spa Services
Local Market
Family spas & Spas based on natural resources Domestic Market –Sport/fitness themed hotels & hotels with healthy options International
Asia-Pacific #1
Adventure spas & Spas based on natural resources Europe #1
Local Market
Local Market –Eco-spas and wellness facilities Domestic Market
– Family spas and wellness facilities & Retreats
International Market – Eco-spas and wellness facilities & Wellness cruises
Wellness hotels & Spas based on natural resources Domestic Market – Spas based on natural resources & Family spas and wellnsss facilities International Market – Thermal spring based spas/hotels
Spanish-speaking markets #1
Local Market
Family spas & wellness facilities
Market – Family spas & wellness facilities International Market – Family spas & wellness facilities & Facilities based on natural resources
Thermal (Spanishspeaking countries) #1
Thermal #1 (Europe)
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
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.
Growth Potential for Services
Local Market –
Natural elements based therapies (e.g. thermal water)
Domestic Market –Natural elements based therapies
International Market –Healthy options, services during stay North America #1
Asia-Pacific #1
Spanishspeaking markets #1
Local Market
Body-MindSpirit/Holistic workshops Domestic Market – BodyMindSpirit/Holistic workshops International Market –Services based on local resources, traditions
Local Market –Lifestyle oriented workshops
Occupational/ corporate wellness
Domestic Market – Lifestyleoriented workshops (e.g. nutrition) & Natural/organic product-based services
Domestic Market – Services based on natural resources International Market – Healthy options & Natural resources Europe #1 Local Market
Domestic Market –Natural elements based therapies (e.g. thermal water)
Local Market –Natural elements based therapies (e.g. thermal water)
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) & Healthy options/services during stay
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 Global 2017 #1 Local Market
Local Market –Natural elements based therapies (e.g. thermal water)
Domestic Market – Natural elements based therapies (e.g. thermal water)
International Market – Thermal experiences
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)
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.
Market Growth Forecast – Local Demand/Walk-in Guests
Market Growth Forecast – Domestic Demand
Number of first time guests?
Market Growth Forecast – International Demand
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
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.
