It is a well established fact that spa revenue in the U.S. is generated largely by women. According to the International Spa Association (“ISPA”), women account for over 75% of all spa visits. It is also a well established fact that spa utilization by males is increasing, driven by a combination of demographic and psychographic factors.
The spa industry has become a major player in the hospitality sector with spas appearing at resort and hotel properties at a remarkable rate. The International SPA Association (iSPA) cited the existence of over 1,662 resort/hotel spa properties as of 2004, a number which has continued to grow into 2006. As the industry continues to develop, spas are becoming independent profit centers, responsible for providing detailed cost accounting to the hotel property and justifying their existence with bottom line income.
The past decade has seen exponential growth in luxury hotel spas and spa resorts, due mainly to significant customer demand, and the fact that margins on spa operations are among the largest in the hotel industry. So what explains this dramatic rise in customer demand? Although many reasons are often cited, many link the growth primarily to aging baby boomers, and the global growth in high net worth individuals, whose stress levels and need for self-actualisation have increased along with their net worth.
While the spa experience may once have been considered a luxury to hotel guests, hotel owners and operators are fast realizing that it is necessary to have a spa to meet guest expectations and to remain competitive. In resort locations catering primarily to groups and individual leisure travelers, golf was once the buzzword for guest recreation and enjoyment. Now with a trend toward better lifestyles, an increase in disposable income, and less available time, spa treatments are better accommodated in a tight schedule than a leisurely round of golf.