Spa Industry Essay Example | Topics and Well Written Essays - 4250 words

Spa Industry - Essay Example With globalisation, the trade and business has experienced tremendous growth. It is the backbone of an economy’s growth and success and hence, the government regulatory always aim to develop trade and business by enhancing industrialization. Besides, the lifestyle of modern people has changed as there have been major improvements in their economic conditions and through process. The entrepreneurs have identified opportunities with the changing time and preferences, and they have commercialized their creative mind for business purposes. Due to emerging demands, necessity and innovations, there are a number of new industries have emerged in recent years for example spa industry, higher education industry, medical tourism industry etc. These industries have successfully identified the potential necessities in existing market and the companies in these industries are able to generate higher profitability. This high profitability also attracts a number of potential investors for in vestments purposes in these emerging industry and business opportunities (English, 2001, p.70). This paper will attempt to analyse the global spa industry and its market for UK. The spa industry is a new emerging industry, and due to its increasing demand of spa treatments, the industry growth rate is high. The primary of aim of this industry analysis is to assess the investment opportunities in spa industry. The industry will be analysed using various business analytical models like PEST, Porter’s five forces and SWOT analysis. Next, the prevailing industry trend and its strategies used by its major companies will be explained followed by an analysis for the industry’s present financial attractiveness. Then, a brief report will be presented showing the future outlook of this industry. Finally, based on analyses and findings proper recommendations will offered for making investments in this industry. Brief Overview of Spa Sector The hospitality and leisure industry are one of the booming industries. The increasing disposable income of people and their changing lifestyles has led to bring significant developments in this industry. Hospitality and leisure industry includes a number of sectors like tourism, medical tourism, hotel, spa and other entertainment sectors. As this paper will deal with spa sector, this section will provide a brief introduction of spa sector. Spa is an emerging service industry that provides body and beauty care treatments. Spa treatments includes non-medical measures like for aromatherapy, hot tub treatment, various types of massages and baths, yoga, meditation etc. These treatments are meant to provide relaxation to human body for increasing the physical wellness. The increasing popularity of these services raises the innovations in this sector and many spa companies are now introducing multiple medical treatments (Ellis, 2009). The following chart shows the different services categories that are included in Australian sp a industry. Figure 1: Structure of Australian Spa Industry (Source: Smith and Puczko, 2008, p.123) As per industry life cycle, this industry is at its growing stage and profitability of this industry is expected to increase at higher rate. Generally, the major players in hotel industries have taken forward integration strategies and offer spa services. However, the increasing popularity has led to develop retail spa sector. This industry targets large group consumers including