Intelligent Spas Publishes New Benchmark Report on Australian Spa Market

Intelligent Spas’ fifth Spa Benchmark Report on the Australian spa market found that over 600 spas are currently operating in Australia and are expected to generate A$500 million (approximately US$465 million) in revenue during 2009, representing a 17% increase compared to 2008. Other key findings included:

• 67% of spas were day spas (not co-located with accommodation) and 33% were destination spas incorporating hotel, resort and retreat spas offering overnight accommodation.

• The spa industry is forecast to employ almost 7,000 people in 2009, which was a 17% increase on 2008 employment numbers.

• 54% of visits to hotel spas were from people not staying in the adjoining hotel, highlighting the importance of hotel and resort spas also catering to their local markets in terms of operational policies and procedures and incorporating local day spas in their competitor analysis activities.

• Prices of standard spa treatments were higher at hotel spas in comparison to prices set by day spas and resort spas.

• 15% of spas noticed an increase in massage bookings, particularly hot stone massage and other relaxing massages.

“Overall, the Australian spa industry continued to grow during the global economic crisis however some key performance indicators per spa declined due to the crowded market. Spa owners and managers are currently challenged with increasing visits per spa and these updated statistics will help them identify how to operate more effectively in this competitive market going into 2010,” said Julie Garrow, Managing Director of the independent research company, Intelligent Spas.

Karen Goudge, President of the Australasian Spa Association added, “the latest Benchmark Report shows how the spa industry continues to change in reference to additional staff being employed and spa treatment requirements. At the Australasian Spa Association, we are happy to inform our members of updated surveys being released by Intelligent Spas as they offer great insight and benefit to our spa industry.”

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