2016 ISPA U.S. Spa Industry Study Executive Summary - Page 3

Recent Trends: Demand Indicators When asked about their more recent experience in the six months prior to the survey (September 2015 to March 2016), three in four spas (76%) reported an increase in revenue. A similar proportion reported an increase in visits (75%), while 60% said client spending was on a rising trend compared to the same period in the previous year. The proportions reporting increasing revenues and visits were at their highest levels since the recent trends question was first posed to survey respondents in the 2010 Industry Study, indicating that growth in the spa sector remains on an upward path. DEMAND INDICATORS: EXPERIENCE IN PAST SIX MONTHS (SEPTEMBER 2015 TO MARCH 2016) COMPARED TO ONE YEAR PREVIOUSLY Spa visits -11% Client spending per visit -8% Revenue -12% 75% 13% 60% 32% Decreased 76% 12% Increased No change Staffing levels -18% Profitability -40% 58% -14% -20% 0% 24% 71% 20% 40% 15% 60% 80% 100% Almost three in five spas (58%) said they had increased staffing levels in the last six months compared to the same period in the previous year. Less than one in five spas (18%) said their staffing levels decreased with the remaining 24% saying that staffing levels had remained unchanged.