An Overview on Medical Spas

By Jacqueline Clarke Wellness Research Director, Diagonal Reports | October 28, 2008

This new "medspa" category is growing - strongly. In the USA, the most developed medspa market, the numbers more than doubled between 2004 and 2006. And in barely more than a decade medspa dollars went from zero to over one billion dollars a year. (There is as much conflict about market sizes as there is about definitions.)

The medspas are themselves but one segment of a relatively new category, the day spa. Currently in the USA, revenues in 14,000 "spas" are over $12 billion a year. The spa market is growing faster than wider professional beauty services market. Indeed spa revenues compare to the $60 billion revenues in about 313,000 hair salons/beauty salons in the USA.

The growth drivers of the medspa market are much the same in different market around the world. The chief of these would include:

For example many managers of medspas stress the "ordinariness" of their clients: "We are seeing more and more very ordinary people."

Medspa business categories / revenue generators

The medspa range of treatments can be very wide ranging - from A to Z, that is, from Aromatherapy to Zen. However, despite the "medical" in their title, the leading treatments in medspas are cosmetic. They are:--

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Social Media: Engagement is Key

There are currently 2.3 billion active users of social media networks and savvy hotel operators have incorporated social media into their marketing mix. There are a few Goliath channels on which one must have a presence (Facebook & Twitter) but there are also several newer upstart channels (Instagram, Snapchat &WeChat, for example) that merit consideration. With its 1.86 billion users, Facebook is a dominant platform where operators can drive brand awareness, facilitate bookings, offer incentives and collect sought-after reviews. Twitter's 284 million users generate 500 million tweets per day, and operators can use its platform for lead generation, building loyalty, and guest interaction. Instagram was originally a small photo-sharing site but it has blown up into a massive photo and video channel. The site can be used to post photos of the hotel property, as well as creating Instagram Stories - personal videos that disappear from the channel after 24 hours. In this regard, Instagram and Snapchat are now in direct competition. WeChat is a Chinese company whose aim is to be the App for Everything - instant messaging, social media, shopping and payment services - all in a single platform. In addition to these channels, blogging continues to be a popular method to establish leadership, enhance reputations, and engage with customers in a direct and personal way. The key to effective use of all social media is to find out where your customers are and then, to the fullest extent possible, engage with them on a personal level. This engagement is what creates a personal connection and sustains brand loyalty. The February Hotel Business Review will explore these issues and examine how some hotels are successfully integrating social media into their operations.