by Patty Monteson,
ISHC and Judy Singer, ISHC
Hotels, July 1999
Health Fitness Dynamics
Inc. (HFD), Pompano Beach, Florida, released in May results
of its third economic study of U.S. spas. The study includes
responses from 30 resort-based spas, and here are some of its
The two most popular
spa services are massage and facials, respectively. In comparing
a la carte services to packages, a la carte services contribute
the highest percentage, 55%, to spa gross revenues. Spa packages
are the second highest line item at 13%.
Most services in
a spa are "one-on-one," so payroll continues to be the largest
operating expense. When asked what percentage of gross revenues
goes to payroll (excluding beneflts) 30% of respondents report
less than 35%, 37% cite between 36%-45%, 23% say 46%-55%, and
10% report more than 56% of gross revenues goes to payroll.
When asked what percentage
of spa gross revenues are net operating proflt, 7% of respondents
report less than or equal to 10%, 13% list between 11%-20%,
40% say 21%-30%, 33% cite between 31%-40%, and 7% report net
operating profits greater than or equal to 41% of total revenues.
In its 16 years in
business, HFD has observed tne resort spa go from being a loss-leader
and a marketing tool, to an important amenity, and now to a
necessity tnat is also a profitable department.
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Fitness Dynamics, Inc.
1305 N.E. 23rd Avenue, Suite 2, Pompano Beach, Florida,
954-942-0049 - Fax: 954-941-0854