Accustomed to years of double-digit growth, the spa industry in US has been hit hard by the economic downturn. According to Digital Report, the market research firm, “Spas describe 2009 as a disaster. Revenues fell by 15 percent compared to the previous year. Such a drop shocked spas which had become accustomed to continuous expansion.
A decade of double digit growth had led to oversupply of spas, which has made the problem worse. In addition, costs had spiraled out of control during the boom. Initially, spas delayed their response to falling revenues and did not react until late 2009.
The Digital Report further states that no significant upturn is expected in spa spending until 2011 or 2012. The budget-minded consumer is here to stay and the free spending levels of 2007 and before will not return any time soon. Spas must now move into a more mature phase of their market development. Convenience is the key word now. Compact services are now in demand and spas which offer ‘smaller price and smaller time packages’ to their clients are now expanding in the US.