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Home > Consumer Products > Consumer Products & Retail > Cosmetics and Toiletries
Spa Services
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| Published Date:
September 2008
Published By:
First Research, Inc.
Page Count:
10
Order Code:
R3470-1833
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The spa services industry in the US consists of about 14,000 facilities with combined annual revenue of over $10 billion. Other than spa facilities owned by major hotel chains, there are no major spa services companies. The industry is highly fragmented: most spa services companies operate a single facility with less than $1 million in annual revenue.
COMPETITIVE LANDSCAPE
Demand for spa services is driven by personal income and demographic trends. The profitability of individual companies depends on efficient resource use and effective marketing. Larger companies have some economies of scale in marketing and purchasing. Small companies compete by offering unique services, serving a local market, and delivering a superior customer experience. The spa industry is labor-intensive: average annual revenue per employee is less than $80,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major providers of spa services are day spas (70 percent of industry revenue); resort and hotel spas (20 percent); and medical spas (5 percent). Other providers include club spas, mineral springs spas, and destination spas. About 80 percent of the spa facilities in the US are day spas. Medical spas are similar to day spas, but focus on services by healthcare professionals, such as Botox injections and laser hair removal. Destination spas offer lodging and a specific health regime, such as weight loss or detoxification programs.
The most popular spa services are full body massages, manicures and pedicures, and facials. Other services include movement classes, ...
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