Wellness and Spa as an Industry

Whether within or outside of tourism, wellnessservices are often aligned with hospitality due to the focus on a customer’s well-being. Wellness is an umbrella term for the environment and the programs that support a lifestyle. The lifestyle could be aging or activity or health. Wellness facilities can include salons and spas, health and fitness centers, sports facilities, game courts, yoga studios, aquatic centers, or outdoor spaces such as parks and walking trails.

Wellness can be understood as a seven-dimension model (Stoewen, 2017):

1. Physical wellness is about doing what you can to help strengthen and care for your body. There are 8 primary topics within physical wellness research: alcohol, flu/cold prevention, illness prevention, nutrition, physical activity and body movement, sexual health, sleep, and stress management (Joppe, 2010).
2. Intellectual wellness means striving toward good mental health, continued intellectual growth, and creativity in life. This can include continued learning, practicing problem solving, improving verbal skills, keeping abreast of social and political issues, and reading books, magazines, and newspapers.
3. Social wellness refers to the relationships we have and how we interact with others. Our relationships can offer support during difficult times. Social wellness involves building healthy, nurturing, and supportive relationships as well as fostering a genuine connection with those around you.
4. Vocational wellness is the ability to achieve personal satisfaction and fulfillment from our work, maintain balance in our lives and make a positive impact within the organizations where we work and the communities where we live. Vocational wellness is subjective – it’s based on your feelings or opinions.
5. Spiritual wellness is defined as expanding a sense of purpose and meaning in life, including one’s morals and ethics. It may or may not involve religious activities.
6. Emotional wellness is the ability to successfully handle life’s stresses and adapt to change and difficult times.
7. Environmental wellness is having good health by occupying pleasant, stimulating environments that support well-being. It promotes interaction with nature and also creates an enjoyable personal environment (both in and out of your workspace).

The wellness and spa industry is a natural fit for hospitality professionals. The skills professionals learn assist them in creating relaxing and memorable experiences. Career opportunities range from spa management and operations to roles focusing on customer wellness journeys and service excellence.

Resorts, cruise ships, hotel spas, and other hospitality establishments have been offering spa services such as massages, facials, nail services, and more for centuries. This includes some of the oldest lodging establishments globally as well as in the U.S. (e.g., Mount Rainier National Park in Washington State, Hot Springs National Park in Arkansas). However, a relatively new segment of tourism, wellness tourism, is emerging as people are increasingly looking to enhance their wellbeing through physical activity, meditation, and other health and fitness pursuits.

The Wellness Tourism Association (WTA) offers “anyone connected to, or interested in, any aspect of wellness tourism the opportunity to become a member and help shape the industry’s future” (n.d., para. 3) through membership and attendance at the annual convention. They define wellness tourism as “travel that allows the traveler to maintain, enhance or kick-start a healthy lifestyle, and support or increase one’s sense of wellbeing” (para. 23).

The intertwining of health, wellness, and spas with the hospitality and tourism industries traces back to the early twentieth century in the Pacific Northwest, marking a significant chapter in the region’s history. Washington State in particular, known for its natural beauty and diverse landscapes, has been a pivotal player in this evolution. A prime example is Soap Lake, renowned for its mineral-rich waters. Soap Lake is believed to possess healing properties. This lake became a magnet for health-seekers, leading to the development of resorts and spas that catered to those seeking therapeutic experiences. The early 1900s saw a boom in such establishments, which not only offered health benefits but also became social and recreational hubs, thereby intertwining wellness with tourism.

This trend has only grown stronger in recent years. According to a report by the Global Wellness Institute (2018), the wellness tourism sector is projected to continue growing at an annual rate of 7.5%, outpacing the overall tourism industry. This trend is evident in the increasing number of wellness-focused resorts, retreats, and spa facilities. The growth of ecotourism and the public’s rising interest in holistic health practices have further fueled this sector.

The trend of integrating local cultural elements and nature-based therapies in spa and wellness centers is a reflection of a growing commitment to sustainable and immersive wellness experiences, particularly among younger generations. This approach may align with the values and preferences of millennials and Generation Z, who are known for desiring authenticity, sustainability, and holistic well-being when making purchasing decisions.

According to a study by the Global Wellness Institute (2024), the wellness tourism market reached $1.8 trillion in 2022 in the U.S. alone, driven in part by the demand for experiences that connect travelers with local cultures and natural environments. A report by Resonance Consultancy found that a vast majority of millennials considered experiencing local culture and cuisine as a crucial factor when choosing a travel destination, and were willing to go into debt to have a cultural travel experience in lieu of one that was not (as cited in Graft, 2022).

This trend is particularly pronounced in the spa and wellness sector, where many resorts and retreats are embracing traditional healing practices and incorporating locally sourced natural ingredients into their treatments. For example, the Anantara Spa in Thailand offers ancient Siamese massage techniques, while the Tierra Patagonia Hotel & Spa in Chile incorporates indigenous Mapuche rituals and locally harvested herbs and minerals into its treatments (Anantara Hotels, Resorts & Spas, n.d.; Tierra Patagonia Hotel & Spa, n.d.). By providing immersive and culturally authentic experiences, these establishments not only cater to the desires of conscious travelers but also contribute to the preservation of local heritage and the promotion of sustainable tourism practices.

Overlapping with spa and wellness are yoga and Pilates, with their emphasis on mental and physical well-being. They align seamlessly with the spa and wellness industry, contributing significantly to its growth. These practices complement the holistic approach of wellness spas in marketing and practice. Wellness-focused offerings like yoga and Pilates have seen a sharp increase in demand according to the International Spa Association (2024). In fact, the global wellness industry is valued at over $4.5 trillion. The annual Global Wellness Summit Report (2023) highlights that mind-body exercise, including yoga and Pilates, is among the top trends. Research shows this is because they resonate with the modern consumer’s pursuit of mental clarity and physical health This synergy has led to a proliferation of wellness retreats and spas incorporating these practices into their services, with a noticeable rise in specialized yoga and Pilates retreats. The integration of these disciplines has not only diversified the spa and wellness industry but also expanded its appeal, attracting a broader demographic seeking comprehensive wellness solutions. This trend is indicative of a growing recognition of holistic health, positioning yoga and Pilates as central elements in the evolving narrative of the spa and wellness industry.

As we look to the future, the wellness and spa sector is poised for significant growth. The combination of a rich historical legacy, the sustainable focus of the industry, and a growing public interest in health and wellness suggests a bright future for this industry. This growth is not only a boon for the tourism and hospitality sectors but also contributes to the overall economic and social fabric of the regions that capture the market.

The Growth of Wellness Programs is Corporate

Wellness is not only a philosophical idea. There is also a business application. Wellness is on the rise in the corporate world. Eighty-three percent of large organizations in the U.S. (i.e., large organizations being defined as 500+ employees) have a wellness program; this is a 65% increase since 2010 (Elflein, 2024). These include supporting employees physical wellbeing (e.g., exercise, nutrition, sleep, disease management), social (e.g., clubs, dancing, group activities), intellectual (e.g., arts and crafts, journaling, games/puzzles), spiritual (e.g., faith-based, personal meditation/reflection, mindfulness), emotional (e.g., peer counseling, stress management, humor/laughter), environmental (e.g., meditation, gardens, walking trails), and vocational (e.g., paid work, volunteer work, skills classes).

Why is wellness so important to large organizations? Research provides evidence that organizations believe wellness programs are important to modern internal customer service settings in business environments (Global Wellness Institute, 2018). Organizations credit wellness programs for increasing employee satisfaction, attracting desirable employees, doing the right thing, controlling healthcare costs, and generating revenue.

Significant shifts in wellness program trends are becoming evident as businesses increasingly recognize the importance of employee well-being.

One of the key trends poised for growth is the expansion of classes, activities, and programs in workplace wellness initiatives. This expansion reflects a holistic approach to wellness, going beyond physical health to include mental and emotional well-being. Companies are expected to diversify their offerings, incorporating activities like mindfulness sessions, nutritional workshops, and stress management programs to cater to a wide range of employee needs.

Simultaneously, there’s a notable trend towards increased budgets for corporate wellness programs. This investment is a strategic move, recognizing the tangible benefits these programs offer in terms of employee health, organizational productivity, and reduced healthcare costs. A RAND Health review (Mattke et al., 2012) highlights that businesses investing in comprehensive wellness programs can expect significant returns, sometimes as high as a 3:1 ROI. This financial commitment indicates a shift in perspective, viewing employee well-being as a core business strategy.

Despite these advancements, certain aspects of corporate wellness programs are expected to remain unchanged. Notably, recent studies anticipate an increase in wellness program budgets, employee participation, and number of activities and programs (Gough, 2024a; Wellable, 2024). This stability underscores a firm commitment to maintaining and enhancing the current level of investment in employee wellness.

These trends reflect a dynamic and thoughtful approach to corporate wellness, balancing expansion with strategic resource allocation. The focus on diversifying wellness options, coupled with a commitment to maintaining or increasing budgets, shows a deepening understanding of the multifaceted nature of employee well-being. As we look towards the next decade, it’s clear that corporate America is not just embracing wellness programs but is actively shaping them to be more inclusive, innovative, and integral to workplace culture.

The Growth of Spa

The spa industry can be understood as a subset of the wellness sector. Spa has experienced a remarkable evolution and growth over the past decade (Mcgroarty, 2022). This growth trajectory can be understood through a blend of historical context, emerging market trends, and shifts in consumer behavior.

Initially, the term ‘spa’ was traditionally associated with mineral springs, a definition that still holds official recognition. However, contemporary usage often extends to establishments offering health and beauty treatments through steam baths, exercise equipment, and massage. While this broadened definition caters to a wider market, it sometimes leads to misrepresentations, with some establishments inaccurately using ‘spa’ to evoke perceptions of natural healing environments.

Financially, the spa industry has demonstrated robust growth. Since 2009, spa revenue and visits have consistently increased, barring the exceptional circumstances of 2020 (American Spa, 2023). Notably, the average spending per spa visit has surged to $147, marking a 90% increase since 2012. With approximately 22,000 spas in the U.S., this sector represents a significant component of the wellness industry (Gough, 2023a).

Analyzing the factors contributing to this growth, several key drivers emerge. Firstly, the COVID-19 pandemic heightened public awareness and concern for personal wellness, subsequently increasing interest in spa services. Demographically, the industry is witnessing a diversification of its clientele. Men represent a rapidly growing market segment, showing a 9.5% annual increase in spa visits (Heath-Jones, 2019). Additionally, the aging baby boomer population is increasingly turning to spas as they enter retirement, while younger generations exhibit a greater propensity towards spa visits compared to their predecessors.

The health benefits offered by spas play a crucial role in their appeal, particularly in the post-COVID era. Consumers are more conscious of health and wellness benefits, seeking out spa services as a means to maintain and enhance their well-being. This trend is expected to continue, contributing to the projected 5% growth in the spa sector (International Spa Association, 2024).

Emerging markets and trends are also reshaping the spa industry. The concept of healthy hotels, which integrate wellness and spa services into their offerings, is gaining traction. Technological advancements have given rise to ‘wireless wellness,’ exemplified by the integration of fitness technology ranging from specialized gym equipment like that in Orange Theory to personal tracking devices like the Apple Watch. Additionally, traditional practices like hot springs and innovative methods like gravity suspension therapy are gaining popularity. The industry is also seeing growth in areas like ferocious fitness, social media influence on wellness, aromatherapy, wellness retreats, and even the integration of wellness concepts in end-of-life care (Spafinder, 2014; Spraul, 2024).

These multifaceted developments point to a dynamic future for the spa industry, with its expansion into wellness destinations and the integration of diverse wellness modalities. The sector’s growth is not just a reflection of changing consumer preferences but also indicative of a broader societal shift towards valuing health and wellness. As the industry adapts and evolves, it is poised to continue its trajectory of growth and diversification in the years ahead.

Attributions

1. Figure 10.1: A view of the Hot Water Cascade at Arlington Lawn. by NPS Photo/Mitch Smith in the Public Domain; Materials produced by federal agencies are in the public domain and may be reproduced without permission.
2. Figure 10.2: Welcome to Soap Lake by J. Stephen Conn is released under CC BY-NC 2.0
3. Figure 10.3: Global Wellness Economy in 2022 by Ezra Leigh, for WA Open ProfTech, © SBCTC, CC BY 4.0
4. Figure 10.4: Number of Spa Visits in the United States from 2008-2022 by Jennifer Snoek-Brown, for WA Open ProfTech, © SBCTC, CC BY 4.0
5. Figure 10.5: Revenue of the spa industry in the United States from 2008-2022 by Jennifer Snoek-Brown, for WA Open ProfTech, © SBCTC, CC BY 4.0