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Inaugural UK spa statistics highlight key growth opportunities
By Jak Phillips 23 Dec 2014
UK Spa Association chair Charlie Thompson hopes to attract 300-500 spa owners to sign up to the benchmarking tool
The UK spa industry has huge potential for growth in terms of product sales and treatment room optimisation if managers can harness their resources and foster stronger upselling.

Those were some of the key findings from the inaugural set of data produced by the UK Spa Association’s benchmarking system, which showed product revenues currently make up just nine per cent of sales in an average UK spa, while the occupancy of treatment rooms is around 41 per cent. Sales performance across the global spa industry is notoriously poor compared to rival sectors, and the latest data further underlines ongoing calls for more imaginative strategies.

The statistics, available to all members of the association, are produced by comparing four key performance indicators that are tracked on a monthly basis: average treatment revenue per hour; retail sales as a percentage of treatment revenue; therapist utilisation; and treatment room utilisation. There are 67 participating spas across the UK at present, with the reliability of the data set to grow as the sample widens.

“As we continue to add spas into the system, the data will become more robust and we will be able to report on performance by regions,” said vice-chair of the UK Spa Association Alex Carvalho.

“Enhancements scheduled for next year will also allow us to analyse contribution by treatment type (i.e. massages, facials, etc...).”


The graphic illustrates how average revenue per treatment and product retail as a percentage of sales have fluctuated during 2014

The first six months’ worth of data (from April through September 2014) show the average revenue per treatment is £40.49 (US$63.10, €51.58). This number is influenced by the mix of spas participating (day spas currently make up 89 per cent of the sample). The average revenue per treatment for hotel spas is considerably higher, at £67.15 (US$104.65, €85.55).

As the UK Spa Association outlined when it demonstrated the benchmarking tool in September, the statistics provide a vital overview of the industry’s strengths and weaknesses. For example, the latest figures show that spa managers are managing their staff effectively, with therapist utilisation at an impressive average of 81 per cent. However, the 41 per cent treatment room utilisation is a figure that can be seriously improved on.

The UK Spa Association expects more sites to sign up in the coming year and says the benchmarking system offers a valuable yardstick for how a spa is faring compared to similar-sized competitors.

“Members can access their own data online and compare their performance against their benchmark set,” said UK Spa Association chair Charlie Thompson.

“The benchmarking system was developed exclusively for the association, and all data is monitored by an independent third party, safely protected on a secure server.”


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NEWS
Inaugural UK spa statistics highlight key growth opportunities
POSTED 23 Dec 2014 . BY Jak Phillips
UK Spa Association chair Charlie Thompson hopes to attract 300-500 spa owners to sign up to the benchmarking tool
The UK spa industry has huge potential for growth in terms of product sales and treatment room optimisation if managers can harness their resources and foster stronger upselling.

Those were some of the key findings from the inaugural set of data produced by the UK Spa Association’s benchmarking system, which showed product revenues currently make up just nine per cent of sales in an average UK spa, while the occupancy of treatment rooms is around 41 per cent. Sales performance across the global spa industry is notoriously poor compared to rival sectors, and the latest data further underlines ongoing calls for more imaginative strategies.

The statistics, available to all members of the association, are produced by comparing four key performance indicators that are tracked on a monthly basis: average treatment revenue per hour; retail sales as a percentage of treatment revenue; therapist utilisation; and treatment room utilisation. There are 67 participating spas across the UK at present, with the reliability of the data set to grow as the sample widens.

“As we continue to add spas into the system, the data will become more robust and we will be able to report on performance by regions,” said vice-chair of the UK Spa Association Alex Carvalho.

“Enhancements scheduled for next year will also allow us to analyse contribution by treatment type (i.e. massages, facials, etc...).”


The graphic illustrates how average revenue per treatment and product retail as a percentage of sales have fluctuated during 2014

The first six months’ worth of data (from April through September 2014) show the average revenue per treatment is £40.49 (US$63.10, €51.58). This number is influenced by the mix of spas participating (day spas currently make up 89 per cent of the sample). The average revenue per treatment for hotel spas is considerably higher, at £67.15 (US$104.65, €85.55).

As the UK Spa Association outlined when it demonstrated the benchmarking tool in September, the statistics provide a vital overview of the industry’s strengths and weaknesses. For example, the latest figures show that spa managers are managing their staff effectively, with therapist utilisation at an impressive average of 81 per cent. However, the 41 per cent treatment room utilisation is a figure that can be seriously improved on.

The UK Spa Association expects more sites to sign up in the coming year and says the benchmarking system offers a valuable yardstick for how a spa is faring compared to similar-sized competitors.

“Members can access their own data online and compare their performance against their benchmark set,” said UK Spa Association chair Charlie Thompson.

“The benchmarking system was developed exclusively for the association, and all data is monitored by an independent third party, safely protected on a secure server.”
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