Information innovation
Spa Finder president Susie Ellis explains why robust data and ongoing research will be so valuable in driving the spa industry forward in the best possible ways.
Spa Finder (www.spafinder.com) President Susie Ellis is a famous name across the international spa industry. Her spa trends are respected worldwide, her spa reviews mean she is a guest every spa wants to please and her weekly online blog is a touch-point for busy spa professionals.
Ellis's job isn't all flower baths and facials, however. She is also increasing the influence of Spa Finder by driving the rollout of SpaFinder.com - which records 15,000 visits a day in the US alone - in Europe, Africa and the Middle East.
"Through the Global Spa Economy, we know how many spas there are in 210 countries around the world and what their revenues are."
Plus, in addition to her highly enviable position as a spa tester, Ellis plays a crucial role in moving the global spa industry forward. With her husband and Spa Finder CEO Pete Ellis, she is one of the founding members of the board of the Global Spa Summit (GSS).
An invitation-only event, the inaugural GSS - which Ellis says Spa Finder has underwritten so far - was held in 2007. Its impact has been huge for the industry, with a landmark Global Spa Economy 2007 report presented at this year's meeting.
"A few of us conceived of the idea for the GSS because we felt that while there were some great conferences around the world, there wasn't one that was really global and focused on moving the industry forward in a positive way together," says Ellis.
"It's the top industry event now globally," she continues. "There are a lot of things that are exciting about it - the 100s of people that come together, the interaction, the dialogue and the agenda.
It's not about promotion - there's no trade shows, no booths. People are actually discouraged from bringing up their own brand," she says.
"The first year we got together, what was very clear was that more data was needed. The press wants data, investors want data. How do we measure how we are doing well - by more data. So, the GSS got together and commissioned a study," says Ellis.
SRI International - formerly the Stanford Research Institute - carried out the research on behalf of GSS, explains Ellis, in what she says represents the most comprehensive effort yet to quantify the rapidly expanding global spa industry.
"Very few industries even try to do any global numbering because it's so challenging," she adds.
"But, we now know how many spas there are in 210 countries around the world and what their revenues are, recognising that industry revenues do not just come from the price of a massage.
"Other industries, whether media, consulting, investment, tourism or medical wellness are affected, so SRI was able to build a cluster model that shows the value of the spa industry to government, to investors and to all of us to look at now to help shape the future," explains Ellis.
The report's findings derive from interviews with more than 50 high-level industry executives; 1000 responses to a global survey of industry sources; and data collected from more than 210 countries - including 20 in the Middle East.
Crucially, the study defined spas as "establishments that promote wellness through the provision of therapeutic and other professional services aimed at renewing body, mind, and spirit."
This reflects Ellis' passion for destination spas and her philosophy that spa experiences should lead to a noticeable improvement in the way a person feels.
"Exercise, healthy eating, breathing, detoxing, relaxing, sleeping well, meditating, finding balance, social health experiences, connecting with other people - that whole experience is what I consider to be spa," she says.
Ellis adds that the key now is to use the data to "really make sure that the spa industry grows in a really positive way so we don't get too saturated, so that we really deliver quality experiences for people".
Next stop: benchmarking
In addition to ensuring that the findings of the Global Spa Economy 2007 are utilised properly, Ellis is also working with the GSS to promote benchmarking and the sharing of financial information in the spa industry.
"At the GSS, there was also a task group on benchmarking," she reveals.
"Spas are now working with Smith Travel, which has carried out a lot of hotel benchmarking. Next year I think spas will be able to submit their revenue information, and then in an aggregate way, as Smith Travel does with hotels, they will be able to measure themselves against other spas."
Smith Travel has generally been working in the US, but because spas are global we want to be able to see how we're doing in different parts of the world, says Ellis.
"It's taking a little more time and a little more work but Smith Travel is working together with the GSS task force to create something that will be measurable and comparable globally," she says.
The fact that the GSS is an invitation-only event will help facilitate this process.
"I think it was important that the summit was restricted to senior executive people. It's not a matter of wanting to have 1000s of people at the GSS, it's a matter of having the people that can make decisions and really move the industry forward," says Ellis.
"There were people on the board of the GSS - from Fairmont, Mandarin Oriental and Mandara, a variety of people - who said ‘we'll be the first to step up to the plate and send in our data'," she reveals.
"At the summit we received an email from Karen Korpi, who represents 90 Ritz-Carlton spas. She said ‘I'm going to give you my data'. That's a huge contribution.
Mia Kyricos, director of spa at Starwood Hotels and Resorts said she'd put in her data. Pretty soon, it was like ‘let's all put in our data, then we can benchmark and get numbers and it can be very useful," explains Ellis.
"Fortunately, we've also got a lot of enthusiasm from people in different arenas - consultants like Spa Strategy and Raison d'Etre -- and it's very nice to see because in a way they are all competitors, but they all come together for the GSS," she says proudly.
With the promise of such important benchmarks, next year's event - to be held in Switzerland - is already an important date for the diary.
But, though some of the region's spa experts such as Daniella Russell of Wafi Health and Leisure and Jumeirah group director of spas Anni Hood are valued panelists at the GSS, will the Middle East ever play host to such a prestigious industry event?
"Who knows, down the road maybe we'll be in the Middle East which will be great," reveals Ellis.
The Global Spa Economy findings
The Global Spa Economy 2007 estimated that the industry was worth US $254.7 billion in total last year, comprising $60.3 billion in core spa industry revenues, such as spa facilities, capital investments, education, consulting, media, associations and events, and $194 billion in spa-related hospitality, tourism and real estate.
When broader spa-related industries such as beauty, nutrition and health and fitness were factored into the equation, last year's global health and wellness market exceeded $1 trillion.
The report also found that 1.2 million workers were employed in more than 71,600 spas worldwide in 2007. During the same period, capital investment in spas approached $13 billion, with continued expansion on the horizon.
In a breakdown of spa revenues by nation, the US emerges on top, with earnings of more than $12 billion, followed by Japan ($5.7 billion) and Germany ($3.8 billion). The list continues with France, Italy, the UK and China, in that order.
The Global Spa Economy 2007 estimated that the industry was worth US $254.7 billion in total last year, comprising $60.3 billion in core spa industry revenues, such as spa facilities, capital investments, education, consulting, media, associations and events, and $194 billion in spa-related hospitality, tourism and real estate.
When broader spa-related industries such as beauty, nutrition and health and fitness were factored into the equation, last year's global health and wellness market exceeded $1 trillion.
The report also found that 1.2 million workers were employed in more than 71,600 spas worldwide in 2007. During the same period, capital investment in spas approached $13 billion, with continued expansion on the horizon.
In a breakdown of spa revenues by nation, the US emerges on top, with earnings of more than $12 billion, followed by Japan ($5.7 billion) and Germany ($3.8 billion). The list continues with France, Italy, the UK and China, in that order.