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RESEARCH

Measure for Measure The latest spa industry benchmarks by Intelligent Spas are key to mapping the impact and recovery of COVID-19. Founder Julie Garrow gives her analysis

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he spa world is experiencing unprecedented pressures and changes which will continue to greatly impact the industry’s performance. Intelligent Spas’ 2019 Global Research captured updated spa benchmarks from over 200 properties across 43 countries just before the COVID-19 outbreak and provides all industry stakeholders with a clear state of the sector over the last three years, plus an opportunity to measure the rate of disruption and recovery as the situation evolves. Julie Garrow, founder and managing director of Intelligent Spas says: “We’ve been tracking global spa performance over the last 10 years and our latest survey shows that average revenue per spa halved during that time due to a supply and demand imbalance, in essence, too many spas opened compared to the level of demand for spa services. A 47 per cent decrease in average spa occupancy rates between 2008 and 2018 prove this. On the positive side, revenue per visit increased 29 per cent to US$129 (€118, £104). Overall, the findings confirm many revenue and visit

Graph 1: SPA OCCUPANCY 40% 2018 30% 20% 10% 0%

Maldives Malaysia

Bali

USA

Thailand GLOBAL

India

Greece

Source: Intelligent Spas, Global Spa Benchmark Reports 2019

indicators have decreased significantly and even before the coronavirus, the business environment for spa owners and managers was challenging.”

Spa occupancy and capture rates The number of people visiting spas in comparison to the number of available spas and treatments is alarming. Although some spas have performed really well over the last three years, the average occupancy rates indicate that PHOTO BY GUSTAVO FRING FROM PEXELS

Spa occupancy has decreased, but revenue per visit has risen

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2019 forecast

many spas have not. The global spa occupancy rate in 2018 was 17.9 per cent and it was forecast to slightly decrease to 17.7 per cent in 2019 (see Graph 1). The massive declines in visits due to lockdowns associated with the current pandemic will inevitably greatly impact 2020 occupancy rates. Intelligent Spas’ survey breaks down occupancy by some spa marketplaces, which highlights key differences in results. Maldives performed well predicting a 36 per cent occupancy rate in 2019, down from 40.4 per cent the previous year. In comparison, spas in Greece reported 14.7 per cent occupancy and were forecasting a slight decline for 2019. The research also recorded two spa capture rate statistics for hotels and resorts in 2019. Spas in the Americas reported the highest in both benchmarks, with 23 per cent of all hotel/resort guests visiting the spa and 52 per cent of total spa visits being from hotel/resort guests. Spas in the Middle East and Africa reported the lowest rates, with 14 per cent of all hotel/resort guests visiting the spa and 36 per cent of total spa visits being from hotel/resort guests. On average, spa capture rates around the world

Profile for Leisure Media

Spa Business issue 2 2020  

Spa Business issue 2 2020  

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