2016 ISPA U.S. Spa Industry Study Executive Summary - Page 2

New spa openings are estimated to have exceeded spa closures by a margin of 360 in 2015, bringing the total number of spa locations up to 21,020 from 20,660 in 2014 (+1.8%). The 2015 out-turn represents the first time the number of spa locations has exceeded 21,000 since the pre-recession peak in 2008, when the number of locations stood at 21,300. The number of spa visits remained on an upward path in 2015, from 176 million in 2014 to 179 million in 2015 (+2.1%). With revenue growth outpacing the increase in visits, the average revenue per visit increased from $88 in 2014 to $91 in 2015 (+2.9%). Overall total employment is estimated to have remained broadly stable at 359,300 as at May 2016, compared with 360,000 as at May 2015 (-0.2%). The 2016 out-turn represents a contrast between robust growth in the number of full-time employees (+5.3%) alongside a fall in the number of part-time workers (-4.1%). Consequently, in May 2016, the estimated number of full-time workers (162,000) was slightly in excess of the number of part-time employees (157,800). In recent years, the number of part-time workers had been rising at a faster pace than the full-time workforce. It remains to be seen whether the reversal in that trend in 2016 is temporary or longer-lasting. Nonetheless, the rise in the number of full-time positions would suggest that spas have been accommodating the recent growth in demand by increasing higher weekly hours worked by their employees. The number of independent contractor positions is estimated to have declined over the period from May 2015 to May 2016, from 44,600 to 41,700 (-6.5%). The reduction in the share of employment filled by independent contractors reflects an ongoing trend, evident since 2010. Profitability Profitability remains buoyant in the spa industry. Excluding the resort/hotel sector, 76% of spas reported a 2015 profit percentage of 10% or more, slightly above the 2014 outturn (73%). The proportion reporting a net loss dropped to 5% in 2015, from 7% in 2014. Within the resort/hotel sector, over three in four spas (76%) reported a spa profit percentage in excess of 10% for 2015, representing an improvement on the 2014 position when 67% reported a profit percentage over 10%. The proportion saying they experienced a net loss was 5%, broadly unchanged from 2014 (6%).