Intelligent Spas - Spa Operations Manuals | Spa Consumer Surveys

Intelligent Spas Press Release Global Spa Benchmark Report May 2009

Intelligent Spas ...100% independent, spa industry intelligence

Print Release (PDF)

Download

picture files below

Julie Garrow

Managing Director

Intelligent Spas

News Release

Intelligent Spas Publishes Updated Dubai Spa Benchmarks

Singapore, 15 July 2009 - Intelligent Spas' second Spa Benchmark Report on the Dubai spa market presents extensive business intelligence and financial statistics including breakdowns of key performance indicators by day spas, hotel spas and resort spas. The new research found over 60 spas are currently operating in Dubai and generating revenue of AED320 million (approximately USD87 million).

Other key findings include:

Resort spas achieve significantly higher revenue per spa compared to day spas and hotel spas.
Over half of the visits to Dubai hotel and resort spas are from people not staying at that property, highlighting the importance of hotel and resort spas also catering to their local markets in terms of operational policies and procedures and incorporating local day spas in their competitor analysis activities.
The daily treatment revenue per available treatment room recorded by day spas increased by 22% over the last year.
Prices of standard spa treatments are higher at hotel spas in comparison to prices set by day spas and resort spas.
Average treatment room occupancy/utilization and therapist productivity rates are less than 50%.
Almost 30% of visitors to Dubai spas are international tourists.

Industry Outlook:

Spa numbers are forecast to grow 17.7% by the end of 2009.
Revenue is predicted to fall by over 50% before a recovery in 2010.
Spa visits are forecast to decrease by 33.7%.

"Overall the Dubai spa market is experiencing reduced demand which is greatly affecting revenue. These updates provide a clear view on current market conditions and the short to medium term outlook. There are significant differences in the performance of day spas, hotel spas and resort spas and this detailed research is a valuable tool for those currently operating in, or planning to enter the Dubai spa market" stated Julie Garrow, Managing Director of 100% independent research company Intelligent Spas (www.IntelligentSpas.com).

Spa Benchmarks/Key Performance Indicators:

This is the most comprehensive statistical report ever published on the Dubai spa market and it contains over 1,050 spa industry benchmarks relating to total spa revenue, spa treatment revenue, expenses, visits and employment, with many topics showing historical data available from 2005 to 2008, plus forecast data for 2009 and 2010. The benchmarks are comparable across the entire spa industry due to the consistent global research methodology implemented by Intelligent Spas. Other statistics and benchmark ratios featured in the report include:

Average Treatment Price
Average Revenue per Visit
Therapist Productivity/Utilisation Rate
Total Revenue and Treatment Revenue per Available Treatment Hour and Minute
Total Revenue and Treatment Revenue per Square Meter/Foot
Total Revenue and Treatment Revenue per Available Treatment Room
Total Revenue and Treatment Revenue per Employee
Breakdown of Total Revenue including retail revenue
Breakdown of Total Expenses
Repeat Visitation Rate
Visitor Profiles by Gender, Age and Residence
Proportion of Hotel Guests Visiting the Spa

The report also presents a collection of supporting business intelligence including:

Spa business models describing ownership, business structure, management structures.
Spa infrastructure covering spa size, space breakdown, treatment rooms and stations, standard support facilities versus water-based support facilities.
Spa menus such as variety of hydrotherapy and water-based treatments offered and the range of treatments practiced.
Spa industry trends relating to clients and products.

"Overall the Dubai spa market is experiencing reduced demand which is greatly affecting revenue"

Julie Garrow, Managing Director, Intelligent Spas

Research Objectives and Sampling:

Intelligent Spas' Dubai Spa Benchmark Report aims to provide a reliable update of the spa population, profile, size and value, plus calculate updated and reliable industry benchmarks for key financial and performance indicators.

The research achieved a response of 55 validated spa businesses, representing 89% of the spa population and is available for purchase from www.IntelligentSpas.com. Note: Intelligent Spas does not conduct anonymous surveys. Each respondent must identify themselves, comply with Intelligent Spas' benchmark definition of "spa" and pass numerous screening criteria to qualify to ensure the research is accurate and reliable for users. Intelligent Spas' 100% independence policy ensures all individual survey data submitted by spas is not used for any other purpose. To join Intelligent Spas' free Global Spa Benchmark Program, register at www.IntelligentSpas.com.

Intelligent Spas is the only 100% independent research company specialising in the spa industry. Founded in Singapore in 2001, it has pioneered spa industry research in the greater Asia Pacific region and continues to publish a range of Spa Operations Manuals and Spa Benchmark Reports to assist the performance and growth of this essential industry.

Intelligent Spas' Global Spa Benchmark Program is currently underway in over 70 countries and aims to produce reliable and comparable statistics to help spas maximise their performance, provide business intelligence to assist other organisations to better understand, service and support the spa industry plus generate greater awareness of the spa industry to increase spa visits.

The updated Dubai Spa Benchmark Report is available for purchase from www.IntelligentSpas.com.