State of the Industry
The spa segment of the hospitality industry has grown significantly over the past few decades, with an increasing number of consumers seeking wellness and relaxation services as a part of their travel experience. In this article, we'll explore the demographics trends, historic global revenue, and future projections of the spa segment within the hospitality industry.
Demographics Trends
The spa segment within the hospitality industry is primarily targeted towards middle-aged and affluent individuals, with many spas offering high-end services such as massages, facials, and other relaxation treatments. However, the demographic of spa-goers has been expanding in recent years, with more millennials and younger consumers seeking wellness and relaxation services.
In addition, there has been an increasing focus on health and wellness among consumers, with many seeking out natural and holistic treatments to help manage stress, anxiety, and other health concerns. This has led to a growing interest in wellness services such as yoga, meditation, and mindfulness practices, which are often incorporated into spa treatments.
Historic Global Revenue
The global spa industry has experienced steady growth over the past few decades, with the industry generating an estimated $93.6 billion in revenue in 2019, according to the Global Wellness Institute. This represents a significant increase from the $60 billion in revenue generated in 2007, indicating a growing interest in wellness and relaxation services.
The spa industry is also highly fragmented, with many small and independent operators accounting for a significant portion of the market. However, larger operators such as Marriott International, Hilton Worldwide, and Four Seasons Hotels and Resorts have also made significant investments in the spa segment, offering high-end services and amenities to guests.
Future Projections
The future of the spa segment within the hospitality industry looks bright, with continued growth expected in the coming years. According to a report by Technavio, the global spa market is expected to grow at a CAGR of over 5% during the period 2020-2024, driven by increasing consumer interest in wellness and relaxation services.
In addition, there has been a growing trend towards wellness tourism, with many travelers seeking out destinations and hotels that offer wellness services and amenities. This has led to an increasing number of hotels and resorts incorporating spa facilities into their offerings, in order to meet the growing demand for wellness services.
The COVID-19 pandemic has undoubtedly had an impact on the spa industry, with many spas having to temporarily close or operate at reduced capacity. However, as the world begins to recover and travel resumes, it is expected that the demand for wellness and relaxation services will continue to increase, and the spa segment will continue to grow and evolve to meet the needs of consumers.
Conclusion
The spa segment within the hospitality industry has experienced significant growth over the past few decades, with increasing consumer interest in wellness and relaxation services. While the demographic of spa-goers has traditionally been middle-aged and affluent individuals, there has been a growing interest among younger consumers and a wider range of individuals seeking out wellness services.
The historic global revenue of the spa industry has also increased significantly, with continued growth expected in the coming years. The future of the spa segment within the hospitality industry looks bright, with a growing trend towards wellness tourism and an increasing number of hotels and resorts incorporating spa facilities into their offerings.
Sources:Global Wellness Institute. (2020). Global Wellness Institute Releases In-Depth Report, “The 2019 Global Wellness Economy Monitor”. https://www.globalwellnessinstitute.org/press-room/press-releases/global-wellness-institute-releases-in-depth-report-the-2019-global-wellness-economy-monitor/Technavio. (2020). Spa Market by Type and Geography - Forecast and Analysis 2020-2024. https://www.technavio.com/report/spa-market-industry-analysisStatista. (2021). Size of the global wellness market from 2015 to 2023. https://www.statista.com/statistics/874771/global-wellness-market-size/American Spa. (2021). The State of the Spa Industry, According to ISPA’s Latest Study. https://www.americanspa.com/news/state-spa-industry-according-ispas-latest-studyHotel Business. (2021). How the Pandemic Will Impact the Future of Spa and Wellness. https://www.hotelbusiness.com/how-the-pandemic-will-impact-the-future-of-spa-and-wellness/