Spa Business issue 2 2021

Page 39

2021 ISPA US Spa Industry Study Big Five Statistics

2019 (Year End)

2020 (Year End)

% Change


$19.1 billion

$12.1 billion



192 million

124 million




21,560* -3.9%


$97.5 -2.0%

2020 (Jan)

2021 (Jan)



304,800 -20.6%



140,600 -20.6%



149,000 -16.7%



15,200 -45.3%

*Count of spas includes spas that were temporarily closed at the end of the calendar year 2020 PHOTO: NDAB CREATIVITY/SHUTTERSTOCK

Again, data showed that day spas fared better in these workforce metrics by a fairly sizeable margin. One in two resort/hotel spas (51 per cent) reported a greater than 25 per cent decrease in staff, compared to one in five day spas (23 per cent). McNees remarks: “The time line for a full recovery is uncertain, but we’re confident that there’s considerable demand for spa experiences and that as pandemic-related restrictions continue to lift, spas will make strong gains.”

Grounds for optimism Russel Donaldson, manager at PwC Research, presented the Big Five stats at the summit alongside his colleague Colin McIlheney, PwC global research leader.


Demand will be driven by a new, even more diverse base of guests

At the end of 2020, the number of US spas had dropped by only 3.9 per cent

The duo report that although numbers reflect the impact of the pandemic, things look hopeful for the industry. McIlheney says: “It’s clear there’s pent-up demand to get out to spas. There are definitely grounds for optimism for the later quarters of this year and particularly for 2022.” He adds that it’s important that spas widen their customer database for a quicker recovery. “Personally, I could see demand rolling on, not just driven by old existing customers but being driven by a new even more diverse base of guests.”

Standout figures For Donaldson, the most intriguing finding is “the fragmentation between different parts of the

industry and the outcomes for day spas versus resorts/hotel spas”. McIlheney feels the location metrics were the most remarkable. “With regards to locations, there were many people who thought numbers would fall off a cliff,” he says, “but the fact that there are still so many spas – over 20,000 – to choose from is very encouraging. “In contrast, the drops in revenue and visits were expected and I anticipated they’d be in and around the mark they were.” The US Spa Industry Study has been published by ISPA since 1999 and in the latest edition it surveyed over 2,050 day, destination and medical spas. The association is set to release its full findings in July. l issue 2 2021 39