People, Trends, Ideas

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 findings.

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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Health Fitness Dynamics, Inc.
1305 N.E. 23rd Avenue, Suite 2, Pompano Beach, Florida, U.S.A. 33062
Phone: 954-942-0049 - Fax: 954-941-0854
E-MAIL: hfd@hfdspa.com