2/19/11

What's the next Travel Trend?


The International SPA Association has produced comprehensive research about the industry with the release of the ISPA 2010 U.S. Spa Industry Study. Produced in cooperation with PricewaterhouseCoopers, the study covers six categories of economic indicators within the spa industry.

INDUSTRY SIZE AND THE IMPACT OF THE RECESSION

Spas, like every other industry, were impacted by the worst economic downturn since the 1930s. However, even with the decline, the "big five" indicators (revenue, spa visits, locations, employees and square footage) remain at their second-highest level since ISPA’s first study in 2000. Spas managed the recession by reshaping their workforces and creatively identifying new ways to remain competitive. "After many years of very rapid growth, all five of the key measurement statistics for the spa industry show a decline after 2008," said PwC Global Research Director Colin McIlheney. "However, many in the industry who took part in the ISPA survey report that they have been proactive in taking measures to combat the impact of the recession. Respondents are indeed cautiously optimistic about the future while also recognizing there are still challenges to face."

INDUSTRY PROFILE

Composition of spa types remained similar to previous years. Day spas comprise an overwhelming majority of establishments (79 percent); resort/hotel spas comprise the second largest segment (8.8 percent), with medical spas a close third (8.7 percent). Other spa types include ClubMineral Springs and Destination spas. The largest concentration of spas are in the Northeast (24 percent) and Southwest (23 percent).

FACILITIES

Spa establishments account for 76 million square feet of indoor space, made up of dedicated treatment rooms, as well as a retail element. Two in three spas contain massage-only treatment rooms; 71 percent contain skin-care only rooms. Four in 10 spas contain hair styling stations, one in two contain make-up stations. Manicure/pedicure stations are found in 85 percent of resort/hotel spas and 65 percent of day spas.

SERVICES AND PRODUCTS

Spas received an estimated 143 million client visits in 2009. The primary treatments provided by spas are body or skin care services, including facials, scrubs and wraps (94 percent); massage services (86 percent), and salon services (68 percent). Wellness programs, including weight management and healthy eating, are offered by 17 percent of spas; and one in 10 spas offer fitness or sports services.

PRICES AND COMPOSITION OF REVENUE

Four main spa treatment and service categories — massage and bodywork, skin care, hair and nail — account for 78 percent of total spa revenue, though average treatment numbers vary considerably by spa type. Retail accounts for 12 percent of spa revenue, with skin and hair care products accounting for the majority of spending in most spas.

PEOPLE

The spa industry employed over 330,000 people during the spring of 2010; 89% of spas provide a range of benefits to employees. Spas still serve a predominantly female clientele, though they are actively seeking to diversify the client base, with 45% of spas using packages targeted toward men. Other client groups targeted by spas include: wedding parties; couples; pregnant women; teens (13 to 19 years of age); athletes; families; and others. As a way of managing the effects of the recession, most spas have reengineered their menus. 75% have introduced shorter treatments (30 minutes or less) to provide a less expensive option for clients with busy schedules.
(source ISPA)


2/18/11

Recession doesn't discourage travellers

At the time that everybody is concerning where the global economy is going, the figures regarding Travel Industry could be socking. According to the new figures published to Asia Travel Tips, IATA is expecting a massive growth of travellers. 800 million new travellers will add up in this massive 8 trillion industry raising the total number to 3.3 Billion travellers up to 2014. This is rising a question. "Are the vacations a luxury? or a need"? As the stress levels are rising up, seems that more people need a good break. 
Who is going t Travel more?
China will be the biggest contributor of new travelers, according to Asia Travel Tips. Among  the 800 million new travelers expected in 2014, 360 million (45%) will travel on Asia Pacific routes and of those 214 million will be associated with China (181 million domestic and 33 million international). The United States will remain the largest single country market for domestic passengers (671 million) and international passengers (215 million).


Top 5
By 2014, the top five countries for international travel measured by number of passengers will be the United States (at 215 million, an increase of 45 million), the United Kingdom (at 198 million with an increase of 33 million), Germany (at 163 million with an increase of 29 million), Spain (123 million with an increase of 21 million), and France (111 million with an increase of 21 million).

2/17/11

Europe is leading US in Travel


In a cross-pond comparison of online travel bookings, Europe tops the U.S. European online leisure/unmanaged business travel bookings surpassed U.S. bookings in 2008 and will continue to retain a lead in 2010, according toPhoCusWright’s European Online Travel Overview Sixth Edition and PhoCusWright’s U.S. Online Travel Overview Tenth Edition.
During the 2009 downturn, online travel proved more resilient than offline channels in both the U.S. and Europe. But while U.S. online leisure/unmanaged business travel fell 5%, the European market held onto a slight 1.5% gain. In 2010, European online leisure/unmanaged business travel bookings will grow 10.5% to reach €73.4 billion (US$97.4), staying just ahead of the U.S. at $96.9 billion.
Although Europe’s online penetration lags behind the U.S., the gap continues to close, and Europe’s larger total travel market offers room to grow. In 2009, Europe’s online leisure/unmanaged business penetration of 31% was nearly eight percentage points behind the U.S. In 2010, the gap is expected to close substantially to just under five percentage points.
Europe is projected to continue its gain on the U.S. over the next several years as markets that have been slower to adopt online booking continue to develop.
PhoCusWright’s online travel overviews are the industry standard for market sizing and forecasting. PhoCusWright’s European Online Travel Overview Sixth Edition is a comprehensive overview of the European online travel market, with detailed analysis of France, Germany, the U.K., Italy, Spain and Scandinavia. The report provides market sizing and forecasting through 2012 for all major travel segments (airlines, hotels, car rental, tour operators, rail and cruise).

People "need" vacations

According PhoCusWright’s European Online Travel Overview Sixth Edition  the European online travel market is expected to grow in up to 10% this year. As the recession goes on, travellers who have hesitated to book online holiday packages are expected to do so, primarely driven from the prices. As PhoCusWright reveals “Deal seekers turned to the Internet, and online travel agencies in particular, to find affordable options.” 


The future of travel shifts in front of our eyes.