Spa Industry is More than just Spa Revenue
Box office revenues are not the entire movie industry.
Cruise ship spa revenues are not the entire cruise industry.
Spa revenues are not the entire spa industry.
I am at the Telluride Film Festival this weekend. In addition to visiting my twin sister, Katrine, who is working on a condominium project here in town, I am joining her for some of the Telluride Film Festival activities.
My mind is never too far away from my work in the spa world…and so it might not be such a surprise that I am continuing my thoughts regarding spa industry research figures. My experience here at the film festival gives me a chance to look at a different industry in which it is clear that while the entire movie industry might be viewed as a pie, box office receipts are only a piece of that pie.
Furthermore, the pie as well as the piece which is called box office receipts, has been redefined over the years. Doing a bit of internet research this morning (before attending my next film), I learned that while the movie industry used to look only at box office revenue, they later began adding revenue figures from new markets such as VHS and DVD rental and sell through, acknowledging that the entire home video, cable and pay per view aspects have all become part of the movie industry’s revenue figures.
Perhaps it is time for our spa industry to relook at what revenue figures we want to report as well as how we should present the entire spa industry “pie.” Do we really want to give the impression that our spa industry is flat (or declining) because revenue from spas as defined by ISPA was 9.4 billion in 2006 versus 9.7 billion in 2005 and that there were 16% fewer spa visits in 2006 versus 2005? Or is it time for us to recognize that while fewer people might be going to traditional spas the way ISPA defines them, there are more people having spa services because they are going to discount massage and aesthetic establishments, having spa services in their homes, purchasing spa products and supplies from sources other than spas, etc. Also, I think it would be beneficial if we began looking at our spa industry more broadly – beyond just the spa revenue figures – and include spa construction, capital improvements, equipment and supplies, marketing, real estate, real estate premiums, etc. It would likely paint a more robust picture.