Research

The 2016 Study also collected information on a range of employment related issues, including: compensation levels of full-time employees in the spa industry; factors affecting compensation levels; compensation structures in respect of paid time off, paid education/training or paid sick leave; and unstaffed positions for service providers. Those topics are the subject of a separate supplementary report, which is being provided only to survey respondents. 

The 2017 survey also collected information on a range of employment-related issues including: compensation levels of full-time employees in the spa industry, factors affecting compensation levels, compensation structures in respect of paid time off, paid education/training or paid sick leave, how the spa handles gratuities/tips and service fees and, unstaffed positions for service providers. Those topics are the subject of a separate supplementary report, which is being provided only to survey respondents.

ISPA advances the spa industry by providing educational and networking opportunities, promoting the value of the spa experience and speaking as the authoritative voice to foster professionalism and growth.

Major findings from the ISPA Spa Workforce Study include a strong word-of-mouth culture in hiring, loyalty to employers being high and a positive culture and working environment is considered important to all roles surveyed.  Eighty-seven percent of management respondents indicated they would like a long-term career in the spa industry.

The 2018 Survey also collected information on a range of employment related issues, including: compensation levels of full-time employees in the spa industry; compensation structures for service provider employees (estheticians, massage therapists and nail therapists); and unstaffed positions. Those topics are the subject of a separate supplementary report, which is provided only to survey respondents.

Of those that reported higher revenue, 27 percent reported an increase of more than 20 percent in comparison to the first quarter of 2014.  However, the first quarter of 2015 was clearly a period of fluctuating fortunes for all spas – 24 percent also reported a decline in gross revenue. Resource partners fared significantly better, with only three percent reporting a decline in revenue.

Just like in gross revenue, a significant majority of respondents also reported an increase in quarterly profit. Not surprisingly the numbers were remarkably similar – 70 percent of respondents reported higher profits with 20 percent noting that profits had increased by more than 20 percent, with six percent booking an increase of more than 50 percent. However, the fact that fewer respondents reported a quarterly loss than reported a decline in revenue shows the importance of cost management when dealing with a period of declining revenue.

The largest group of spa respondents (29 percent) fell in the up by 1-9% increase range. When asked about the level of gross profit change when comparing quarter one of 2016 versus the same time in 2015, 72 percent of spas saw an increase.

A majority (73 percent) of spa respondents reported first quarter 2016 spa visits were up compared to the same time in 2015. In regards to workforce changes, a little less than half (42 percent) filled vacant positions only during the first quarter of the year. Thirty-one percent of day spa members said they added new positions during this quarter compared to 26 percent of resort/hotel spas. When asked about average retail revenue per treatment, the largest group of spas (30 percent) fell in the $5-$10 range. Only seven percent of resort/hotel spas reported an average retail revenue per treatment of more than $25 compared to twenty-three percent of day spas.

Another encouraging trend found in the data is that spa visits were up for the ninth consecutive quarter across all segments of spa respondents. Seventy-two percent of all spa respondents reported that visits were up, with 76 percent of day spa respondents and 69 percent of resort/hotel spa respondents reporting an increase.

Spa visits also continue to increase with 72 percent of all spa respondents reporting that spa visits were up when comparing the first quarter of 2018 with the first quarter of 2017. For day spas, this figure was slightly higher at 78 percent.

By a considerable margin the most common cut-off point between the hours someone must work before being considered full-time is 30 per week among all ISPA spa members. In day spas, 42 percent of respondents consider an employee to be full-time at that point, just ahead of the 40 percent of resort spas that agreed. At day spas, the second most common cut-off point is 35 hours per week – still somewhat below the traditional 40-hour working week. For vendors, 59 percent expect a minimum of 40 hours per week from full-time staff.

Staffing at spas appears to be fairly evenly split between full-time and part-time staff. In day spas, part-time and full-time staff are split 48 percent to 46 percent, while at resorts 49 percent are part-time and 43 percent are full-time. Contract employees form less than 10 percent of spa staff.

A large majority of all spas also responded yes to having written job descriptions for the following positions: esthetician (98 percent), spa manager (93 percent), spa director (92 percent), spa attendant and nail technician (90 percent). In regards to having a written description for the role of hair stylist, only 65 percent of day spas responded yes compared to 80 percent of resort/hotel spas.

In discussing what areas are included within a company’s job description, one hundred percent of all spas require the duties/tasks for which the position is responsible for. Other popular responses include experience requirements, supervisory responsibilities, physical demands, education requirements and the company’s core values that must be honored. The least popular answer among both day and resort/hotel spas was the type of equipment the employee would be responsible for operating.

In terms of social media marketing, Facebook and Instagram are the most used platforms by spa respondents, at 97 percent and 79 percent, respectively. More than half of spa respondents reported they do not use LinkedIn (52 percent), Pinterest (59 percent) or Snapchat (64 percent) in their company’s marketing efforts. On the other hand, the majority of resource partners use all social media tools mentioned, in addition to Twitter. The largest segment of resource partner respondents said that Facebook and Instagram were ‘very effective’ tools at 38 percent and 33 percent, respectively.

The majority of all spa respondents offer training of the following types to their employees: in-house, hands-on vendor training (93 percent), virtual vendor training (72 percent), customer service training (83 percent), leadership/management training (69 percent), new employee orientation (95 percent) and retail sales training (79 percent.) On the other hand, a minority segment of resource partner respondents receive training in the following areas: complimentary hands-on training at the client’s spa (48 percent), complimentary hands-on training at your company office (20 percent), hands-on training at your company office (33 percent), training/tutorial videos (45 percent), live virtual training (43 percent), web-based training (43 percent). In addition, 18 percent do not offer training opportunities at all.

This volume also highlights key insights relating specifically to spa-goers and how they are using social media to research spas and share their experiences with others. The snapshots offer invaluable insight into the real-life attitudes and opinions of a sample of the U.S. population at a point in time. The level of interest in the results has been remarkable, building on the success of the previous four volumes. 

The survey has been extended beyond the U.S. to include consumers in other parts of the world. As international commerce advances and demographics change, it is vital for the spa industry to understand its consumers and how perceptions of the spa industry compare across territories and between different sections of society.

This report looks beyond U.S. borders and highlights what motivates people to visit or, just as importantly, not to visit a spa, as well as gauging wider opinions on the spa industry as a whole.

The millennial generation already account for more than one in four Americans, and as time goes on, their influence over consumer behavior, not to mention their spending power, is only likely to increase.

It is vital for the spa industry to better understand the opportunities and challenges presented by millennials, and by keeping pace with their demands and preferences, the industry can maximize its return from this powerful demographic force.

This study dives deeply into the world of millennials—highlighting their motivations for visiting and not visiting spas, and shining a light on millennials’ perceptions of a variety of contemporary issues. Click "View Full Article" to access the study.

Instagram was the channel the largest amount of spas (70 percent) either somewhat or significantly increased the use of from 2014 to 2015. Following closely behind in the somewhat or significantly increased usage was Facebook (63 percent) and email  (62 percent). When asked about their change in marketing spend in 2015 versus 2014, 51 percent of all spas said their spending increased. While 36 percent of spa respondents noted their marketing spend stayed the same, it is interesting to note that 42 percent of day spas decreased their marketing spend compared to only five percent of resort/hotel spas.

Spa members were also asked to describe their most successful marketing promotion from 2015. Social media contests were mentioned quite frequently, along with direct mail and email blasts. Using TravelZoo was also mentioned by several members.

Hiring qualified employees continues to be a challenge for many respondents. For all spa respondents, as well as the day spa and resort/hotel spa segments, more than half of respondents said that hiring a qualified spa manager, spa receptionist, spa therapist, esthetician, and/or a nail technician in 2016 was somewhat difficult or very difficult.

All respondents were asked to name some of their favorites for 2016. The most commonly listed favorite books of 2016 were Start with Why by Simon Sinek, Daring Greatly by Brenè Brown, Leaders Eat Last by Simon Sinek, The Girl on the Train by Paula Hawkins and The Power of Positive Thinking by Norman Vincent Peale. ISPA members have a variety of favorite apps and websites including Evernote, Insight Timer, Snapchat and Headspace to name a few.  Other favorites asked of respondents included favorite holiday tradition at their company, their favorite new tech gadget or app, and others. 

The results analysis includes answers from all respondents who took the Snapshot Survey in an eight-day period from Friday, December 2, 2016 to Friday, December 9, 2016. During this time, 224 ISPA members responded to the survey.  The categories “all spas” and “ISPA Spa Members” referred to within this report include data from all spa respondents (day, resort/hotel, medical and destination spas). 

When asked about their favorite new marketing initiative, Instagram-related efforts were frequently mentioned.  Sixty-eight percent of spa respondents and 70 percent of resource partners indicated they increased their Instagram marketing efforts in 2017. 

Referral program are being used significantly more by day spa member respondents than resort/hotel spa member respondents (64 percent and 16 respectively).  Loyalty cards and points systems which result in discounted or free treatments or products are two of the most popular programs being used. Other referral incentives included giving customers free upgrades on services, gift cards to redeem for the products or services and percentage discounts on services and treatments.

Thirty-five percent of all spas reported they do not recognize customers who refer a new client in any way. Nearly half (48 percent) of all resort/hotel spas stated they give no recognition for referrals, with day spas reporting this number to be much lower at just 20 percent. The most popular means of recognition reported was expressing gratitude in person the next time the customer visits the spa, with 42 percent of all spas using this form of recognition.  An large majority of all spas (81 percent) reported that they do not have any sort of incentive in place for employees who refer new clients.