PULSE POINTS
BY JOSH CORMAN
THE GEOGRAPHY OF SPA
IN THE DECADE FOLLOWING THE GREAT RECESSION,
the spa industry has rebounded impressively. As reported
in the 2019 ISPA U.S. Spa Industry Study, the number of
spa locations has reached an all-time high of 22,160, with
six states now home to more than 1,000 locations each.
The number of spa employees, total number of spa visits,
and revenue per spa visit also hit respective peaks in 2018.
Perhaps just as remarkable as the industry’s strong
recovery is its regional consistency. A quick dip into data
from the early days of recovery following the recession
reveals that the nationwide distribution of spas has
remained nearly identical for at least a decade. The North
East and South West regions are each home to 19 percent
of the nation’s population, yet account for nearly half (47
percent) of U.S. spas.
Why do these regions continue to “overperform” relative
to their populations? There are a couple of potential
20
PULSE
■
APRIL 2020
answers. First, these two regions contain nearly half of the
nation’s 15 largest cities. Major population centers like New
York City, Los Angeles, Phoenix, Philadelphia and San Diego
are likely to attract significant interest from those looking to
open or expand a spa business. Of course, large cities are
also home to a huge number of existing and potential spa-
goers. That access to available clientele is another reason for
spas to call the North East or South West home.
Those two regions aren’t only home to a host of major
cities, however. They also contain a high number of states
whose median household income ranks well above the na-
tional average of $61,937. Of the 11 states that comprise the
North East region, six states posted median household in-
comes of $67,500 or greater (seven of 12 including the Dis-
trict of Columbia), and four of the seven South West states
can say the same. The other four regions combined contain
only three states that eclipse the $67,500 threshold.