COVID-19 Forces Spas to

Discover New Paths to Profits

Decline in tourism and hospitality is a crushing blow to spa revenue  

The world’s tourism sector could lose at least $1.2 trillion, or 1.5% of the global gross domestic product (GDP), according to a report from the United Nations. The industry has been nearly frozen in place for four months. The ripple effect has destroyed the annual revenue projections for the global spa industry.


The massive decline in tourist arrivals means fewer room nights booked at hotels and resorts. These guests play a vital role in the need for services at the spa. In response, some are cutting costs. We are seeing increased unemployment for staff. Many spas are reducing senior management salaries.

Spas reopen with increase in consumer demand for homecare products  

Spas that reopen need a strategic plan that goes beyond new hygiene and sanitation procedures. No one knows when spas will fully reopen but it is certain recovery will take a long time. We see a projected 4.6 million job loss in the hospitality industry. Travel spending is also expected to decline to the tune of $355 billion dollars. 

Does your spa generate 20% or more in retail sales to service?  

Retail sales can contribute significantly to a spa’s revenue, however, many spas do not realize their full economic potential. At the height of the pandemic, people are still buying spa and beauty products online. Some recently
re-opened spas are reporting that retail products are flying off their shelves.

Not all spas will adjust to the changes in the industry. The most successful will invest in training their staff with new skills.

Do you want to learn more about specific actions
you can take? Even during the worst of times
some spas will prosper. Don't delay.

The global spa industry faces huge losses due to coronavirus. Experts warn many spas will lose 80% of revenue compared to last year.

Homecare is a major trend. People want to know more about taking care of themselves. Providing services virtually creates a way to engage with customers and get feedback. It also provides new revenue streams. Gift vouchers, pre-paid memberships, and e-commerce present exciting revenue opportunities. 

Successful spas adopt a business approach that aligns with the 'new normal'. To prepare for spa reopenings managers and hotel owners should train staff now for improved retail sales. The benefits of this increased focus on selling extend to the organization, the spa, and the guests.