The pandemic has hit many industries last year, many of which are still recovering this year. For example, 40% of U.S. restaurants were forced to close two months into the pandemic. The entertainment industry also took a big hit, with major entertainment areas closed down for long periods. This led to billions of revenues lost in a span of sixty days. This devastation is something that is unheard of ever since the great depression back in the 40s. But what does this mean for more niche industries like the spa industry?
The spa industry was valued at around $18 billion in 2020. It employed 366,000 employees and has around 22,000 businesses working within the industry. It’s calculated that the industry lost about $3 million that year due to the pandemic. This isn’t as big as other industries’ losses, such as the restaurant industry, which lost billions of dollars last year. However, it is still a decent chunk of a billion-dollar industry. So how is the spa industry coping this year with its losses? Well, here are some things you should know about the Spa industry during the pandemic.
Temporarily Closed and Changes to Operations
During the beginning of the pandemic in March 2020, many businesses were forced to close down temporarily. These businesses were considered non-essential businesses and were prime hotspots for people to get infected with the virus. This included spas from all over the world due to it being a high contact profession. But by the start of summer 2020, some spas were allowed to open with some restrictions.
Spas are now following specific regulations to lessen the chances of the virus being transmitted within their businesses. Contact services such as facials and waxing are currently unavailable. Communal facilities such as steam rooms are also closed. There are also more glass barriers with people you might interact with. Ultimately, the worse part of it all is that if there is a reported infection within a particular spa, that spa will be forced to temporarily shut down its services for a given amount of days. This can damage business revenue, so spas that open during the pandemic are still a severe risk for business owners. If you are a spa owner and have commercial insurance, you can make claims for these kinds of disasters. Depending on your coverage or plan, you can get a couple of thousand dollars from the damages that the pandemic may have caused your business.
Online Dependency
Spas are currently depending on their online presence to drive sales. The industry is spending more time online, as more and more spas are creating their own websites. Spa websites like Rejuvn8 at Paparazzi can make appointments for customers. This is a safer way for customers to make appointments. It also keeps track of how many customers are about to use the facility. Contact information is also a part of online appointments, which means that whoever goes to the spa is easily contacted — just in case.
This is a prevalent shift to digital that’s happening this year, where many traditional businesses have transitioned to online companies due to the pandemic. Online businesses this year are projected to earn billions of dollars, so as a spa owner, it might be smart for you to start building your online website. This can help your customers make reservations and appointments. It will also secure your spa from potential threats that the pandemic has to offer. Ultimately, by going digital, you can keep your spa and revenue safe from the damages that the pandemic caused traditional businesses last year.
Main Way to Destress
Many consumers all around the world still rely on spas and medspas as a way to alleviate stress. Despite the pandemic, the industry is still raking in decent revenue streams, even if some services aren’t allowed to function. This means that it would be smart for spa owners to open their doors and operate under the restricted guidelines. It will ensure that their business survives through the pandemic. It will also ensure that business owners can get a decent revenue stream going for any potential investments in the future.
Closing down your spa business is the last thing you want to do. Right now, you can still get a decent amount of customers visiting you on-site. Additionally, you can still get the same revenues you had before the pandemic because you can increase your prices to accommodate the few customers you can have per day. This can help you bounce back this year. It can also gradually help your spa business grow for the years to come.