Spa Holidays - UK - January 2005

Contents

Introduction and Abbreviations

• Definitions
• What is a spa?
• Consumer research
• ACORN

Abbreviations

Summary of Key Report Findings

• Low market penetration in the UK...
• ...but penetration rates are set to increase
• Significant untapped potential, but also large numbers claiming no interest in spa
• Differing profiles for UK day spa-goers and spa holidaymakers
• Long-haul spa destinations popular
• The future: Extending the core target market

Market Factors

• Increased personal stress
• Different spa types: Focus on medical advantages vs. beauty and relaxation
• Consumer confidence and the economy
• Figure 1: PDI and consumer expenditure, at current and constant prices, 1999-2009
• UK population changes
• Figure 2: UK population structure, by age group, 1999-2009
• Lifestage
• Figure 3: Adult population, by lifestage, 1999-2009
• Socio-economic groups
• Figure 4: Adult population, by socio-economic group, 1999-2009
• Exchange rates and their impact on spa holidays
• Figure 5: Annual average exchange rates for Sterling against the euro and US Dollar, 1999-2004
• The impact of low-cost airlines
• Figure 6: Scheduled passengers carried by main low-cost airlines, 1999-2004
• Growth of the singles market
• Growth of corporate travel incentives
• Figure 7: Payment of spa visits in past 12 months, 2003
• More male spa-goers
• European health insurance reforms demand increased commercial focus in European spas
• UK interest in health, beauty and skincare
• Figure 8: Agreement with the statements "Im interested in innovations in cosmetics" and "I use products to keep my skin young and supple", by demographic sub-group, 2004
• Figure 9: Agreement with the statements "Im interested in innovations in cosmetics" and "I use products to keep my skin young and supple", by lifestage, working status & geographic region,
• 2004
• Trends in health and beauty
• Figure 10: Agreement with statements on personal care, 2001-04
• Figure 11: Agreement with the statements "What I want most is to look attractive/well groomed"
• and "I do a lot to keep in shape", by demographic sub-group, 2004
• Specialist treatments

Market Size and Trends

• Figure 12: Experience of spas and spa holidays, October 2004

Average cost of spa holiday

• Figure 13: Estimated cost of UK outbound spa holidays, 2004

The Supply Structure

• Destinations increasing in popularity
• Figure 14: Cond・Nast Top 10 Spas worldwide, 2003

Specialist spa operators

• A Spa to Life
• Caribtours
• Champneys Health Resorts
• Erna Low
• Thermalia

Luxury operators

• International Travel Connections Ltd
• La Joie de Vivre Travel
• Tropical Locations

Mainstream Operators

• First Choice Holidays
• TUI UK
• Trade bodies
• British International Spa Association (BISA)
• European Spa Association (ESPA)
• International Spa Association (ISPA)
• Spa Business Association (SpaBA)

The Consumer

Spa holidays taken

• Figure 15: Experience of spas and spa holidays, October 2004
• Figure 16: Spa facility/holiday attendance, by gender, age and socio-economic group, October 2004
• Figure 17: Spa facility/holiday attendance, by region and ACORN categories, October 2004
• Figure 18: Spa facility/holiday attendance, by detailed lifestage groups, October 2004
• Figure 19: Spa facility/holiday attendance, by media usage, supermarket usage and commercial
• TV viewing, October 2004

The Future

• Emergence of global spa chains and brands
• Expanding target markets
• Spa combination holidays
• Growth in medical spas
• Setting quality standards
• Standardisation of Training
• Experts future predictions

Forecast

• Scenario-forecasting
• Scenario-groups:
• Scenario 1: Static
• Figure 43: Scenario 1 for spa holiday scenario groups, October 2004
• Scenario 2: Optimistic
• Figure 44: Scenario 2 for spa holiday scenario groups, October 2004
• Scenario 3: Pessimistic
• Figure 45: Scenario 3 for spa holiday scenario groups, October 2004
• Scenario Limitations:

Appendix: Research Methodology