The fastest growing segment of hospitality and leisure industry is the spa industry. In 2005, U.S. spa industry generated $9.7 billion and the annual growth rate of this industry is around 20%. More than 131 million people visited spas in the United States in 2005. The growth rate here is around 10% per year. So, the question is how the spa industry did it and what lies for them in the near future.
Ten years ago, beauty was skin deep and TV commercials were not required to show the side effects of the medicines. And it was not widely accepted that stress can affect your health.
Ten years ago, spas were only meant to be for pampering services only. Today, people visit spas to get better. People now love anything with the word, “organic”, and following the trend spas now offer organic treatments and use organic products for skincare services.
Ten years ago, hardly any men visited the spas. Today, in some spas, half of their clients are men. People have a backache or want to improve their golf swing, they visit a spa. Overall it is a 70-30 split and getting closer. Everyday life is speeding up, stress is inevitability, plus the tough job market is asking men to look younger. No wonder, men are taking spas seriously. Recent surveys in New York found the most popular request is still massage but requests for ultra-expensive facials is not that behind in popularity. Cheap spa packages in New York that offers a combo of multiple skincare and pampering services are also gaining popularity.
The advertising and marketing techniques have contributed a lot in the growth of the spa industry. Spas today, are offering membership programs with a theme that says “frequent visits make you feel good”. Spas are trying to make their clients more involved, more they feel they are a part of the spa, the more they spend. Spas in Manhattan, NY have found this formula highly profitable along with clever advertising.
No special day or holiday passes without discount offers from the spas. Local important events see free or discounted spa membership offers targeting key demographic. With the help of Facebook and Twitter, spas are always connected with their clients. Some spas offer special discount offers via monthly newsletters and free service for loyal clients (the fifth time it’s free or special discount on birthday, etc.). Referral programs like, making your friend a member gets you two some special free service, is also helping.
The idea, fast beauty, fast fitness and shorter workouts, is trending worldwide and will continue to do so for quite some time. This trend is helping the growth of the spa industry. The word ‘spa’ has become a global term and it relates to people in a positive way. There’s been an absolute explosion in India and China in spa development. It is only a matter of time that many US spas become multi-national entity and expand their franchise worldwide.