Spa Services Industry Overview

Excerpt from Spa Services Report

Companies in this industry operate spas and wellness centers. Major companies include destination spa chains Canyon Ranch and Golden Door, massage clinic franchise Massage Envy, day spa franchise Woodhouse Spa, and Steiner Leisure, which operates spas on cruise ships and at resorts and hotels.

Competitive Landscape

Demand for spa services is driven by personal income and demographic trends. The profitability of individual companies depends on efficient resource use and effective marketing. Larger companies have some economies of scale in marketing and purchasing. Small companies compete by offering unique services, catering to a local market, and delivering a superior customer experience. The fitness and recreational sports centers industry, which includes spa services, is fragmented: the top 50 companies account for about one-third of sales.

Products, Operations & Technology

Major providers of spa services are day spas (about 80 percent of locations); resort and hotel spas (10 percent); and medical spas (10 percent). Other providers include club spas, mineral springs spas, and destination spas. Day spas include hair and nail salons with "spa" in the name that may offer a few traditional spa services. Medical spas focus on services provided by healthcare professionals, such as Botox injections and laser hair removal. Destination spas offer lodging and a specific health regime, such as weight loss or detoxification programs.