Spa Services

Spa Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate spas and wellness centers. Major US companies include destination spa chains Canyon Ranch and Golden Door; massage clinic franchise Massage Envy and Steiner Leisure, which operates spas on cruise ships and at resorts and hotels; and day spa franchise Woodhouse Day Spa. Major companies based outside the US include Absolute Spa (Canada); Keio Takaosan Onsen Gokurakuyu (Japan); and Polska Grupa Uzdrowisk (Poland).

COMPETITIVE LANDSCAPE

Demand for spa services is driven by personal income, wellness tourism, and demographic trends. The profitability of individual companies depends on efficient resource use and effective marketing. Spa visits and revenue per visit are key industry metrics. Larger companies have some economies of scale in marketing and purchasing. Small companies compete by offering unique services, catering to a local market, and delivering a superior customer experience. The US fitness and recreational sports centers industry, which includes spa services, is fragmented: the top 50 companies account for about one-third of sales.

PRODUCTS, OPERATIONS & TECHNOLOGY

The amusement and recreation industry gets majority of their revenue from fitness and recreational sports centers, which includes spa services, accounting for more than 40%. This is followed by golf courses and country clubs (30%) and other amusement and recreation. Other revenue comes from skiing facilities, marinas, and bowling centers. Day spas include hair and nail salons with "spa" in the name that may offer a few traditional spa services. Medical spas focus on services provided...