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Spa market size to grow by USD 22.08 billion from 2020 to 2025; A descriptive analysis of customer landscape, vendor assessment, and market dynamics – Technavio

Spa market size to grow by USD 22.08 billion from 2020 to 2025; A descriptive analysis of customer landscape, vendor assessment, and market dynamics – Technavio
PR Newswire
NEW YORK, Jan. 16, 2023

NEW YORK, Jan. 16, 2023 /PRNewswire/ — The global …

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Spa market size to grow by USD 22.08 billion from 2020 to 2025; A descriptive analysis of customer landscape, vendor assessment, and market dynamics - Technavio

PR Newswire

NEW YORK, Jan. 16, 2023 /PRNewswire/ -- The global spa market size is estimated to increase by USD 22.08 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 6% during the forecast period. Discover some insights on market size before buying the full report - Request a sample report

Spa market - Customer Landscape
To help companies evaluate and develop growth strategies, the report outlines –

  • Key purchase criteria
  • Adoption rates
  • Adoption lifecycle
  • Drivers of price sensitivity
  • Get detailed insights into the market study. Buy the report!

Spa market – Vendor Analysis
Vendor Landscape - The global spa market is fragmented due to the presence of several global and regional vendors. A few prominent vendors that offer spas in the market are Aspira Spa, Cal-a-Vie Health Spa, Gaia Retreat & Spa, Hand & Stone Franchise Corp., HOT SPRINGS RESORT & SPA, Kempinski Hotels SA, Lanserhof GmbH, Marriott International Inc., ME SPE Franchising LLC, and Rancho La Puerta Inc. and others.

Vendor Offerings -

  • Aspira Spa - The company offers a line of services such as massages, facials, dynamic envelopments for the body, the healing arts, specialty treatments, salon and nail services, and spa classes among others.
  • Cal-a-Vie Health Spa - The company offers a wide range of services under spa and beauty category, including Cal-A-Vie vinotherapie massage, Cal-A-Vie vinotherapie grape skin wrap, Cal-A-Vie vinotherapie vichy scrub, aromatic awakening massage, bamboo massage, poolside massage, and many others.
  • Gaia Retreat & Spa - The company offers a line of products such as Gaia Deluxe, Bayron Bay Dream, Inner Serenity, and Dreamtime Travel among others.
  • Hand & Stone Franchise Corp. - The company offers a line of products such as therapeutic massage, facial, and hair removal services among others.

Spa Market - Segmentation Assessment

Segment Overview
Technavio has segmented the market based on type (day/club/salon spa, hotel/resort spa, destination spa, medical spa, and others) and geography (Europe, APAC, North America, South America, and MEA).

  • The spa market share growth by the day/club/salon spa segment will be significant during the forecast period. The demand for day spas, club spas, and salon spas is increasing due to the variety of services offered by them. Day spas offer beauty and relaxation treatments such as hair treatments, massages, and facials. Similarly, club spas offer spa treatments and offer facilities like well-equipped gyms, relaxation lounges or bars, and beauty salons where treatments like nail services or other beauty services can be availed. The increasing demand for such services among consumers is driving the growth of the segment.

Geography Overview
By geography, the global spa market is segmented into Europe, APAC, North America, South America, and MEA. The report provides actionable insights and estimates the contribution of all regions to the growth of the global spa market.

  • Europe will account for 33% of the market growth during the forecast period. The presence of many spas and the growing wellness tourism industry is driving the growth of the spa market in Europe during the forecast period.

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Spa marketMarket Dynamics

Leading Drivers -

The market is driven by the increase in the adoption of facial, body, and hair treatments in spas. The rise in in the prevalence of acne problems and hair loss problems coupled with the growing awareness about beauty and wellness services has increased the demand for facial, body, and hair treatments in spas. The growing demand is encouraging spas to offer a variety of treatments including steam, exfoliation, moisturizers, masks, peels, and massages. They are also offering other treatments such as reducing puffiness and dark circles around the eyes, aqua therapy, body wraps, body polishes, and Vichy showers. All these factors are driving the growth of the global spas market.

Key Trends – 

The increase in the availability of flotation therapy spa services is identified as the key trend in the market. Floatation therapy offers several medical benefits such as alleviating stress, regulating blood circulation, and improving skin health. It is based on suspended gravity and its demand is growing with the increasing use of weightless, saltwater, stress-and mind-melting flotation tanks, rooms, and pools at spas. Specific flotation tanks, which are dark and soundproof, are used for this therapy. The therapy energizes the body and reduces the risk of chronic pain, headache, swelling, and depression. Such health benefits are increasing the consumer demand for floatation therapy, which is driving the growth of the market.

Major challenges – 

The fragmented nature of the market will be a major challenge hindering growth. The global spa market is fragmented with the presence of many players offering a wide range of wellness programs and treatments. The presence of such a large number of players is making geographical expansion difficult for global players. The players compete on various parameters including the price, service, and brand recognition. This varies by region and the presence of high competition discourages new players to enter the market. In addition, the unorganized nature of the market makes difficult for vendors to develop effective marketing strategies. All these factors are reducing the growth potential in the market.

Driver, Trend, and Challenges are the factors of market dynamics that state about consequences & sustainability of the businesses, find some insights from a sample report!

What are the key data covered in this spa market report?

  • CAGR of the market during the forecast period
  • Detailed information on factors that will drive the growth of the spa market between 2021 and 2025
  • Precise estimation of the size of the spa market size and its contribution to the market in focus on the parent market
  • Accurate predictions about upcoming trends and changes in consumer behavior
  • Growth of the spa market industry across Europe, APAC, North America, South America, and MEA
  • A thorough analysis of the market's competitive landscape and detailed information about vendors
  • Comprehensive analysis of factors that will challenge the growth of spa market vendors

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Related Reports:

  • The climbing gym market is estimated to grow at a CAGR of 12.5% between 2022 and 2027. The size of the market is forecast to increase by USD 4,185.74 million. The increased popularity of outdoor sports is notably driving the market growth, although factors such as risks of accidents and injuries associated with climbing activities may impede the market growth.
  • The wellness tourism market size is predicted to surge by USD 327.56 billion from 2021 to 2026 at a CAGR of 7.55%. The increase in mental illness is notably driving the wellness tourism market growth, although factors such as perception of wellness tourism as a luxury travel market may impede the market growth.

Spa Market Scope

Report Coverage

Details

Page number

120

Base year

2020

Forecast period

2021-2025

Growth momentum & CAGR

Accelerate at a CAGR of 6%

Market growth 2021-2025

USD 22.08 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

4.30

Regional analysis

Europe, APAC, North America, South America, and MEA

Performing market contribution

Europe at 33%

Key countries

US, China, Germany, France, and Japan

Competitive landscape

Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks

Key companies profiled

Aspira Spa, Cal-a-Vie Health Spa, Gaia Retreat & Spa, Hand & Stone Franchise Corp., HOT SPRINGS RESORT & SPA, Kempinski Hotels SA, Lanserhof GmbH, Marriott International Inc., ME SPE Franchising LLC, and Rancho La Puerta Inc.

Market dynamics

Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Table of contents:

1 Executive Summary

  • 1.1 Market overview 
    • Exhibit 01: Executive Summary – Chart on Market Overview
    • Exhibit 02: Executive Summary – Data Table on Market Overview
    • Exhibit 03: Executive Summary – Chart on Global Market Characteristics
    • Exhibit 04: Executive Summary – Chart on Market by Geography
    • Exhibit 05: Executive Summary – Chart on Market Segmentation by Application
    • Exhibit 06: Executive Summary – Chart on Market Segmentation by Type
    • Exhibit 07: Executive Summary – Chart on Incremental Growth
    • Exhibit 08: Executive Summary – Data Table on Incremental Growth
    • Exhibit 09: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

  • 2.1 Market ecosystem 
    • Exhibit 10: Parent market
    • Exhibit 11: Market Characteristics

3 Market Sizing

  • 3.1 Market definition 
    • Exhibit 12: Offerings of vendors included in the market definition
  • 3.2 Market segment analysis 
    • Exhibit 13: Market segments
  • 3.3 Market size 2021
  • 3.4 Market outlook: Forecast for 2021-2026 
    • Exhibit 14: Chart on Global - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 15: Data Table on Global - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 16: Chart on Global Market: Year-over-year growth 2021-2026 (%)
    • Exhibit 17: Data Table on Global Market: Year-over-year growth 2021-2026 (%)

4 Five Forces Analysis

  • 4.1 Five forces summary 
    • Exhibit 18: Five forces analysis - Comparison between2021 and 2026
  • 4.2 Bargaining power of buyers 
    • Exhibit 19: Chart on Bargaining power of buyers – Impact of key factors 2021 and 2026
  • 4.3 Bargaining power of suppliers 
    • Exhibit 20: Bargaining power of suppliers – Impact of key factors in 2021 and 2026
  • 4.4 Threat of new entrants 
    • Exhibit 21: Threat of new entrants – Impact of key factors in 2021 and 2026
  • 4.5 Threat of substitutes 
    • Exhibit 22: Threat of substitutes – Impact of key factors in 2021 and 2026
  • 4.6 Threat of rivalry 
    • Exhibit 23: Threat of rivalry – Impact of key factors in 2021 and 2026
  • 4.7 Market condition 
    • Exhibit 24: Chart on Market condition - Five forces 2021 and 2026

5 Market Segmentation by Application

  • 5.1 Market segments 
    • Exhibit 25: Chart on Application - Market share 2021-2026 (%)
    • Exhibit 26: Data Table on Application - Market share 2021-2026 (%)
  • 5.2 Comparison by Application 
    • Exhibit 27: Chart on Comparison by Application
    • Exhibit 28: Data Table on Comparison by Application
  • 5.3 Physical - Market size and forecast 2021-2026
    • Exhibit 29: Chart on Physical - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 30: Data Table on Physical - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 31: Chart on Physical - Year-over-year growth 2021-2026 (%)
    • Exhibit 32: Data Table on Physical - Year-over-year growth 2021-2026 (%)
  • 5.4 Psychological - Market size and forecast 2021-2026
    • Exhibit 33: Chart on Psychological - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 34: Data Table on Psychological - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 35: Chart on Psychological - Year-over-year growth 2021-2026 (%)
    • Exhibit 36: Data Table on Psychological - Year-over-year growth 2021-2026 (%)
  • 5.5 Spiritual - Market size and forecast 2021-2026
    • Exhibit 37: Chart on Spiritual - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 38: Data Table on Spiritual - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 39: Chart on Spiritual - Year-over-year growth 2021-2026 (%)
    • Exhibit 40: Data Table on Spiritual - Year-over-year growth 2021-2026 (%)
  • 5.6 Market opportunity by Application 
    • Exhibit 41: Market opportunity by Application ($ billion)

6 Market Segmentation by Type

  • 6.1 Market segments 
    • Exhibit 42: Chart on Type - Market share 2021-2026 (%)
    • Exhibit 43: Data Table on Type - Market share 2021-2026 (%)
  • 6.2 Comparison by Type 
    • Exhibit 44: Chart on Comparison by Type
    • Exhibit 45: Data Table on Comparison by Type
  • 6.3 Domestic - Market size and forecast 2021-2026
    • Exhibit 46: Chart on Domestic - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 47: Data Table on Domestic - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 48: Chart on Domestic - Year-over-year growth 2021-2026 (%)
    • Exhibit 49: Data Table on Domestic - Year-over-year growth 2021-2026 (%)
  • 6.4 International - Market size and forecast 2021-2026
    • Exhibit 50: Chart on International - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 51: Data Table on International - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 52: Chart on International - Year-over-year growth 2021-2026 (%)
    • Exhibit 53: Data Table on International - Year-over-year growth 2021-2026 (%)
  • 6.5 Market opportunity by Type 
    • Exhibit 54: Market opportunity by Type ($ billion)

7 Customer Landscape

  • 7.1 Customer landscape overview 
    • Exhibit 55: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

8 Geographic Landscape

  • 8.1 Geographic segmentation 
    • Exhibit 56: Chart on Market share by geography 2021-2026 (%)
    • Exhibit 57: Data Table on Market share by geography 2021-2026 (%)
  • 8.2 Geographic comparison 
    • Exhibit 58: Chart on Geographic comparison
    • Exhibit 59: Data Table on Geographic comparison
  • 8.3 North America - Market size and forecast 2021-2026
    • Exhibit 60: Chart on North America - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 61: Data Table on North America - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 62: Chart on North America - Year-over-year growth 2021-2026 (%)
    • Exhibit 63: Data Table on North America - Year-over-year growth 2021-2026 (%)
  • 8.4 Europe - Market size and forecast 2021-2026
    • Exhibit 64: Chart on Europe - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 65: Data Table on Europe - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 66: Chart on Europe - Year-over-year growth 2021-2026 (%)
    • Exhibit 67: Data Table on Europe - Year-over-year growth 2021-2026 (%)
  • 8.5 APAC - Market size and forecast 2021-2026
    • Exhibit 68: Chart on APAC - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 69: Data Table on APAC - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 70: Chart on APAC - Year-over-year growth 2021-2026 (%)
    • Exhibit 71: Data Table on APAC - Year-over-year growth 2021-2026 (%)
  • 8.6 South America - Market size and forecast 2021-2026
    • Exhibit 72: Chart on South America - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 73: Data Table on South America - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 74: Chart on South America - Year-over-year growth 2021-2026 (%)
    • Exhibit 75: Data Table on South America - Year-over-year growth 2021-2026 (%)
  • 8.7 Middle East and Africa - Market size and forecast 2021-2026 
    • Exhibit 76: Chart on Middle East and Africa - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 77: Data Table on Middle East and Africa - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 78: Chart on Middle East and Africa - Year-over-year growth 2021-2026 (%)
    • Exhibit 79: Data Table on Middle East and Africa - Year-over-year growth 2021-2026 (%)
  • 8.8 US - Market size and forecast 2021-2026
    • Exhibit 80: Chart on US - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 81: Data Table on US - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 82: Chart on US - Year-over-year growth 2021-2026 (%)
    • Exhibit 83: Data Table on US - Year-over-year growth 2021-2026 (%)
  • 8.9 Germany - Market size and forecast 2021-2026 
    • Exhibit 84: Chart on Germany - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 85: Data Table on Germany - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 86: Chart on Germany - Year-over-year growth 2021-2026 (%)
    • Exhibit 87: Data Table on Germany - Year-over-year growth 2021-2026 (%)
  • 8.10 France - Market size and forecast 2021-2026
    • Exhibit 88: Chart on France - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 89: Data Table on France - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 90: Chart on France - Year-over-year growth 2021-2026 (%)
    • Exhibit 91: Data Table on France - Year-over-year growth 2021-2026 (%)
  • 8.11 China - Market size and forecast 2021-2026
    • Exhibit 92: Chart on China - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 93: Data Table on China - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 94: Chart on China - Year-over-year growth 2021-2026 (%)
    • Exhibit 95: Data Table on China - Year-over-year growth 2021-2026 (%)
  • 8.12 Japan - Market size and forecast 2021-2026
    • Exhibit 96: Chart on Japan - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 97: Data Table on Japan - Market size and forecast 2021-2026 ($ billion)
    • Exhibit 98: Chart on Japan - Year-over-year growth 2021-2026 (%)
    • Exhibit 99: Data Table on Japan - Year-over-year growth 2021-2026 (%)
  • 8.13 Market opportunity by geography 
    • Exhibit 100: Market opportunity by geography ($ billion)

9 Drivers, Challenges, and Trends

  • 9.1 Market drivers
  • 9.2 Market challenges
  • 9.3 Impact of drivers and challenges 
    • Exhibit 101: Impact of drivers and challenges in 2021 and 2026
  • 9.4 Market trends

10 Vendor Landscape

  • 10.1 Overview
  • 10.2 Vendor landscape 
    • Exhibit 102: Overview on Criticality of inputs and Factors of differentiation
  • 10.3 Landscape disruption 
    • Exhibit 103: Overview on factors of disruption
  • 10.4 Industry risks 
    • Exhibit 104: Impact of key risks on business

11 Vendor Analysis

  • 11.1 Vendors covered 
    • Exhibit 105: Vendors covered
  • 11.2 Market positioning of vendors 
    • Exhibit 106: Matrix on vendor position and classification
  • 11.3 Accor SA 
    • Exhibit 107: Accor SA - Overview
    • Exhibit 108: Accor SA - Business segments
    • Exhibit 109: Accor SA - Key offerings
    • Exhibit 110: Accor SA - Segment focus
  • 11.4 Cal A Vie Health Spa 
    • Exhibit 111: Cal A Vie Health Spa - Overview
    • Exhibit 112: Cal A Vie Health Spa - Product / Service
    • Exhibit 113: Cal A Vie Health Spa - Key offerings
  • 11.5 Canyon Ranch 
    • Exhibit 114: Canyon Ranch - Overview
    • Exhibit 115: Canyon Ranch - Product / Service
    • Exhibit 116: Canyon Ranch - Key offerings
  • 11.6 Clinique La Prairie 
    • Exhibit 117: Clinique La Prairie - Overview
    • Exhibit 118: Clinique La Prairie - Product / Service
    • Exhibit 119: Clinique La Prairie - Key offerings
  • 11.7 Four Seasons Hotels Ltd. 
    • Exhibit 120: Four Seasons Hotels Ltd. - Overview
    • Exhibit 121: Four Seasons Hotels Ltd. - Product / Service
    • Exhibit 122: Four Seasons Hotels Ltd. - Key offerings
  • 11.8 Gaia Retreat and Spa 
    • Exhibit 123: Gaia Retreat and Spa - Overview
    • Exhibit 124: Gaia Retreat and Spa - Product / Service
    • Exhibit 125: Gaia Retreat and Spa - Key offerings
  • 11.9 Hand and Stone Massage and Facial Spa 
    • Exhibit 126: Hand and Stone Massage and Facial Spa - Overview
    • Exhibit 127: Hand and Stone Massage and Facial Spa - Product / Service
    • Exhibit 128: Hand and Stone Massage and Facial Spa - Key offerings
  • 11.10 HOT SPRINGS RESORT and SPA 
    • Exhibit 129: HOT SPRINGS RESORT and SPA - Overview
    • Exhibit 130: HOT SPRINGS RESORT and SPA - Product / Service
    • Exhibit 131: HOT SPRINGS RESORT and SPA - Key offerings
  • 11.11 Jade Mountain 
    • Exhibit 132: Jade Mountain - Overview
    • Exhibit 133: Jade Mountain - Product / Service
    • Exhibit 134: Jade Mountain - Key offerings
  • 11.12 Osthoff Resort 
    • Exhibit 135: Osthoff Resort - Overview
    • Exhibit 136: Osthoff Resort - Product / Service
    • Exhibit 137: Osthoff Resort - Key offerings

12 Appendix

  • 12.1 Scope of the report
  • 12.2 Inclusions and exclusions checklist 
    • Exhibit 138: Inclusions checklist
    • Exhibit 139: Exclusions checklist
  • 12.3 Currency conversion rates for US$ 
    • Exhibit 140: Currency conversion rates for US$
  • 12.4 Research methodology 
    • Exhibit 141: Research methodology
    • Exhibit 142: Validation techniques employed for market sizing
    • Exhibit 143: Information sources
  • 12.5 List of abbreviations 
    • Exhibit 144: List of abbreviations
About Us

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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Default: San Francisco Four Seasons Hotel Investors $3 Million Late On Loan As Foreclosure Looms

Default: San Francisco Four Seasons Hotel Investors $3 Million Late On Loan As Foreclosure Looms

Westbrook Partners, which acquired the San…

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Default: San Francisco Four Seasons Hotel Investors $3 Million Late On Loan As Foreclosure Looms

Westbrook Partners, which acquired the San Francisco Four Seasons luxury hotel building, has been served a notice of default, as the developer has failed to make its monthly loan payment since December, and is currently behind by more than $3 million, the San Francisco Business Times reports.

Westbrook, which acquired the property at 345 California Center in 2019, has 90 days to bring their account current with its lender or face foreclosure.

Related

As SF Gate notes, downtown San Francisco hotel investors have had a terrible few years - with interest rates higher than their pre-pandemic levels, and local tourism continuing to suffer thanks to the city's legendary mismanagement that has resulted in overlapping drug, crime, and homelessness crises (which SF Gate characterizes as "a negative media narrative).

Last summer, the owner of San Francisco’s Hilton Union Square and Parc 55 hotels abandoned its loan in the first major default. Industry insiders speculate that loan defaults like this may become more common given the difficult period for investors.

At a visitor impact summit in August, a senior director of hospitality analytics for the CoStar Group reported that there are 22 active commercial mortgage-backed securities loans for hotels in San Francisco maturing in the next two years. Of these hotel loans, 17 are on CoStar’s “watchlist,” as they are at a higher risk of default, the analyst said. -SF Gate

The 155-room Four Seasons San Francisco at Embarcadero currenly occupies the top 11 floors of the iconic skyscrper. After slow renovations, the hotel officially reopened in the summer of 2021.

"Regarding the landscape of the hotel community in San Francisco, the short term is a challenging situation due to high interest rates, fewer guests compared to pre-pandemic and the relatively high costs attached with doing business here," Alex Bastian, President and CEO of the Hotel Council of San Francisco, told SFGATE.

Heightened Risks

In January, the owner of the Hilton Financial District at 750 Kearny St. - Portsmouth Square's affiliate Justice Operating Company - defaulted on the property, which had a $97 million loan on the 544-room hotel taken out in 2013. The company says it proposed a loan modification agreement which was under review by the servicer, LNR Partners.

Meanwhile last year Park Hotels & Resorts gave up ownership of two properties, Parc 55 and Hilton Union Square - which were transferred to a receiver that assumed management.

In the third quarter of 2023, the most recent data available, the Hilton Financial District reported $11.1 million in revenue, down from $12.3 million from the third quarter of 2022. The hotel had a net operating loss of $1.56 million in the most recent third quarter.

Occupancy fell to 88% with an average daily rate of $218 in the third quarter compared with 94% and $230 in the same period of 2022. -SF Chronicle

According to the Chronicle, San Francisco's 2024 convention calendar is lighter than it was last year - in part due to key events leaving the city for cheaper, less crime-ridden places like Las Vegas

Tyler Durden Sun, 03/17/2024 - 18:05

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Correcting the Washington Post’s 11 Charts That Are Supposed to Tell Us How the Economy Changed Since Covid

The Washington Post made some serious errors or omissions in its 11 charts that are supposed to tell us how Covid changed the economy. Wages Starting with…

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The Washington Post made some serious errors or omissions in its 11 charts that are supposed to tell us how Covid changed the economy.

Wages

Starting with its second chart, the article gives us an index of average weekly wages since 2019. The index shows a big jump in 2020, which then falls off in 2021 and 2022, before rising again in 2023.

It tells readers:

“Many Americans got large pay increases after the pandemic, when employers were having to one-up each other to find and keep workers. For a while, those wage gains were wiped out by decade-high inflation: Workers were getting larger paychecks, but it wasn’t enough to keep up with rising prices.”

That actually is not what its chart shows. The big rise in average weekly wages at the start of the pandemic was not the result of workers getting pay increases, it was the result of low-paid workers in sectors like hotels and restaurants losing their jobs.

The number of people employed in the low-paying leisure and hospitality sector fell by more than 8 million at the start of the pandemic. Even at the start of 2021 it was still down by over 4 million.

Laying off low-paid workers raises average wages in the same way that getting the short people to leave raises the average height of the people in the room. The Washington Post might try to tell us that the remaining people grew taller, but that is not what happened.

The other problem with this chart is that it is giving us weekly wages. The length of the average workweek jumped at the start of the pandemic as employers decided to work the workers they had longer hours rather than hire more workers. In January of 2021 the average workweek was 34.9 hours, compared to 34.4 hours in 2019 and 34.3 hours in February.

This increase in hours, by itself, would raise weekly pay by 2.0 percent. As hours returned to normal in 2022, this measure would misleadingly imply that wages were falling.

It is also worth noting that the fastest wage gains since the pandemic have been at the bottom end of the wage distribution and the Black/white wage gap has fallen to its lowest level on record.

Saving Rates

The third chart shows the saving rate since 2019. It shows a big spike at the start of the pandemic, as people stopped spending on things like restaurants and travel and they got pandemic checks from the government. It then falls sharply in 2022 and is lower in the most recent quarters than in 2019.

The piece tells readers:

“But as the world reopened — and people resumed spending on dining out, travel, concerts and other things that were previously off-limits — savings rates have leveled off. Americans are also increasingly dip into rainy-day funds to pay more for necessities, including groceries, housing, education and health care. In fact, Americans are now generally saving less of their incomes than they were before the pandemic.

This is an incomplete picture due to a somewhat technical issue. As I explained in a blogpost a few months ago, there is an unusually large gap between GDP as measured on the output side and GDP measured on the income side. In principle, these two numbers should be the same, but they never come out exactly equal.

In recent quarters, the gap has been 2.5 percent of GDP. This is extraordinarily large, but it also is unusual in that the output side is higher than the income side, the opposite of the standard pattern over the last quarter century.

It is standard for economists to assume that the true number for GDP is somewhere between the two measures. If we make that assumption about the data for 2023, it would imply that income is somewhat higher than the data now show and consumption somewhat lower.

In that story, as I showed in the blogpost, the saving rate for 2023 would be 6.8 percent of disposable income, roughly the same as the average for the three years before the pandemic. This would mean that people are not dipping into their rainy-day funds as the Post tells us. They are spending pretty much as they did before the pandemic.

 

Credit Card Debt

The next graph shows that credit card debt is rising again, after sinking in the pandemic. The piece tells readers:

“But now, debt loads are swinging higher again as families try to keep up with rising prices. Total household debt reached a record $17.5 trillion at the end of 2023, according to the Federal Reserve Bank of New York. And, in a worrisome sign for the economy, delinquency rates on mortgages, car loans and credit cards are all rising, too.”

There are several points worth noting here. Credit card debt is rising, but measured relative to income it is still below where it was before the pandemic. It was 6.7 percent of disposable income at the end of 2019, compared to 6.5 percent at the end of last year.

The second point is that a major reason for the recent surge in credit card debt is that people are no longer refinancing mortgages. There was a massive surge in mortgage refinancing with the low interest rates in 2020-2021.

Many of the people who refinanced took additional money out, taking advantage of the increased equity in their home. This channel of credit was cut off when mortgage rates jumped in 2022 and virtually ended mortgage refinancing. This means that to a large extent the surge in credit card borrowing is simply a shift from mortgage debt to credit card debt.

The point about total household debt hitting a record can be said in most months. Except in the period immediately following the collapse of the housing bubble, total debt is almost always rising.

And the rise in delinquencies simply reflects the fact that they had been at very low levels in 2021 and 2022. For the most part, delinquency rates are just getting back to their pre-pandemic levels, which were historically low.  

 

Grocery Prices and Gas Prices

The next two charts show the patterns in grocery prices and gas prices since the pandemic. It would have been worth mentioning that every major economy in the world saw similar run-ups in prices in these two areas. In other words, there was nothing specific to U.S. policy that led to a surge in inflation here.

 

The Missing Charts

There are several areas where it would have been interesting to see charts which the Post did not include. It would have been useful to have a chart on job quitters, the number of people who voluntarily quit their jobs during the pandemic. In the tight labor markets of 2021 and 2022 the number of workers who left jobs they didn’t like soared to record levels, as shown below.

 

The vast majority of these workers took other jobs that they liked better. This likely explains another item that could appear as a graph, the record level of job satisfaction.

In a similar vein there has been an explosion in the number of people who work from home at least part-time. This has increased by more than 17 million during the pandemic. These workers are saving themselves thousands of dollars a year on commuting costs and related expenses, as well as hundreds of hours spent commuting.

Finally, there has been an explosion in the use of telemedicine since the pandemic. At the peak, nearly one in four visits with a health care professional was a remote consultation. This saved many people with serious health issues the time and inconvenience associated with a trip to a hospital or doctor’s office. The increased use of telemedicine is likely to be a lasting gain from the pandemic.

 

The World Has Changed

The pandemic will likely have a lasting impact on the economy and society. The Washington Post’s charts captured part of this story, but in some cases misrepr

The post Correcting the Washington Post’s 11 Charts That Are Supposed to Tell Us How the Economy Changed Since Covid appeared first on Center for Economic and Policy Research.

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Women’s basketball is gaining ground, but is March Madness ready to rival the men’s game?

The hype around Caitlin Clark, NCAA Women’s Basketball is unprecedented — but can its March Madness finally rival the Men’s?

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In March 2021, the world was struggling to find its legs amid the ongoing Covid-19 pandemic. Sports leagues were trying their best to keep going.

It started with the NBA creating a bubble in Orlando in late 2020, playing a full postseason in the confines of Disney World in arenas that were converted into gyms devoid of fans. Other leagues eventually allowed for limited capacity seating in stadiums, including the NCAA for its Men’s and Women’s Basketball tournaments.

The two tournaments were confined to two cities that year — instead of games normally played in different regions around the country: Indianapolis for the men and San Antonio for the women.

But a glaring difference between the men’s and women’s facilities was exposed by Oregon’s Sedona Prince on social media. The workout and practice area for the men was significantly larger than the women, whose weight room was just a single stack of dumbbells.

The video drew significant attention to the equity gaps between the Men’s and Women’s divisions, leading to a 114-page report by a civil rights law firm that detailed the inequities between the two and suggested ways to improve the NCAA’s efforts for the Women’s side. One of these suggestions was simply to give the Women’s Tournament the same March Madness moniker as the men, which it finally got in 2022.

But underneath the surface of these institutional changes, women’s basketball’s single-biggest success driver was already emerging out of the shadows.

During the same COVID-marred season, a rookie from Iowa led the league in scoring with 26.6 points per game.

Her name: Caitlin Clark.

Caitlin Clark has scored the most points and made the most threes in college basketball.

Matthew Holst/Getty Images

As it stands today, Clark is the leading scorer in the history of college basketball — Men’s or Women’s. Her jaw-dropping shooting ability has fueled record viewership and ticket sales for Women’s collegiate games, carrying momentum to the March Madness tournament that has NBA legends like Kevin Garnett and Paul Pierce more excited for the Women’s March Madness than the Men’s this year.

Related: Ticket prices for Caitlin Clark's final college home game are insanely high

But as the NCAA tries to bridge the opportunities given to the two sides, can the hype around Clark be enough for the Women’s March Madness to bring in the same fandom as the Men for the 2024 tournaments?

TheStreet spoke with Jon Lewis of Sports Media Watch, who has been following sports viewership trends for the last two decades; Melissa Isaacson, a veteran sports journalist and longtime advocate of women’s basketball; and Pete Giorgio, Deloitte’s leader for Global and US Sports to dissect the rise Caitlin Clark and women’s collegiate hoops ahead of March Madness.

“Nobody is moving the needle like Caitlin Clark,” Lewis told TheStreet. “Nobody else in sports, period, right now, is fueling record numbers on all these different networks, driving viewership beyond what the norm has been for 20 years."

The Caitlin Clark Effect is real — but there are other reasons for the success of women's basketball

The game in which Clark broke the all-time college scoring record against Ohio State on Sunday, Mar. 3 was seen by an average of 3.4 million viewers on Fox, marking the first time a women’s game broke the two million viewership barrier since 2010. Viewership for that game came in just behind the men’s game between Michigan State vs Arizona game on Thanksgiving, which Lewis said was driven by NFL viewership on the same day.

A week later, Iowa’s Big Ten Championship win over Nebraska breached the three million viewers mark as well, and the team has also seen viewership numbers crack over 1.5 million viewers multiple times throughout the regular season.

The success on television has also translated to higher ticket prices, as tickets to watch Clark at home and on the road have breached hundreds of dollars and drawn long lines outside stadiums. Isaacson, who is a professor at Northwestern, said she went to the game between the Hawkeyes and Northwestern Wildcats — which was the first sellout in school history for the team — and witnessed the effect of Clark in person.

“Standing in line interviewing people at the Northwestern game, seeing men who've never been to a women's game with their little girls watching and so excited, and seeing Caitlin and her engaging with little girls, it’s just been really fun,” Isaacson said.

But while Clark is certainly the biggest success driver, her game isn’t the only thing pulling up the women’s side. The three-point revolution, which started in the NBA with the introduction of deeper analytics as well as the rise of stars like Steph Curry, has been a positive for the Women’s game.

“They backed up to the three-point line and it’s opening up the game,” Isaacson said.

One of the major criticisms from a lot of women’s hoops detractors has been how the game does not compare in terms of quality to the men. However, shooting has become a great equalizer, displayed recently during the 2024 NBA All-Star Weekend last month when the WNBA’s Sabrina Ionescu nearly defeated Curry — who is widely considered the greatest shooter ever — in a three-point contest.

Clark has become the embodiment of the three-point revolution for the women. Her shooting displays have demanded the respect of anyone who has doubted women’s basketball in the past because being a man simply doesn’t grant someone the ability to shoot long-distance bombs the way she can.

Basketball pundit Bill Simmons admitted on a Feb. 28 episode of “The Bill Simmons Podcast” that he used to not want to watch women’s basketball because he didn’t enjoy watching the product, but finds himself following the women’s game this year more than the men’s side in large part due to Clark.

“I think she has the chance to be the most fun basketball player, male or female, when she gets to the pros,” Simmons said. “If she’s going to make the same 30-footers, routinely. It’s basically all the same Curry stuff just with a female … I would like watching her play in any format.”

But while Clark is driving up the numbers at the top, she’s not the only one carrying the greatness of the product. Lewis, Isaacson, Giorgio — and even Simmons, on his podcast — agreed that there are several other names and collegiate programs pulling in fans.

“It’s not just Iowa, it’s not just Caitlin Clark, it’s all of these teams,” Giorgio said. “Part of it is Angel Reese … coaches like Dawn Staley in South Carolina … You’ve got great stories left and right.”

LSU's Angel Reese (right) and her head coach Kim Mulkey are two of the biggest names in Women's college hoops. 

Eakin Howard/Getty Images

The viewership showed that as well because the SEC Championship game between the LSU Tigers and University of South Carolina Gamecocks on Sunday, Mar. 10 averaged two million viewers.

Bridging the gap between the Men’s and Women’s March Madness viewership

The first reason women are catching up to the men is really star power. While the Women’s division has names like Clark and Reese, there just aren’t any names on the Men’s side this year that carry the same weight.

Garnett said on his show that he can’t name any men’s college basketball players, while on the women’s side, he could easily throw out the likes of Clark, Reese, UConn’s Paige Bueckers, and USC’s JuJu Watkins. Lewis felt the same.

“The stars in the men's game, with one and done, I genuinely couldn't give you a single name of a single men’s player,” Lewis said.

A major reason for this is that the Women’s side has the continuity that the Men’s side does not. The rules of the NBA allow for players to play just one year in college — or even play a year professionally elsewhere — before entering the draft, while the WNBA requires players to be 22-years-old during the year of the draft to be eligible.

“You know the stars in the women's game because they stay longer,” Lewis said. “[In the men’s game], the programs are the stars … In the women's game, it's a lot more like the NBA where the players are the stars.”

Parity is also a massive factor on both sides. The women’s game used to be dominated by a few schools like UConn and Notre Dame. Nowadays, between LSU, Iowa, University of South Carolina, Stanford, and UConn, there are a handful of schools that have a shot to win the entire tournament. While this is more exciting for fans, the talent in the women's game isn’t deep enough, so too many upsets are unlikely. Many of the biggest draws are still expected to make deep runs.

But on the men’s side, there is a bigger shot that the smaller programs make it to the end — which is what was seen last year. UConn eventually won the whole thing, but schools without as big of a national fanbase in San Diego State, Florida Atlantic University, and the University Miami rounded out the Final Four.

“People want to see one Cinderella,” Lewis said. “They don't want to see two and three, they want one team that isn't supposed to be there.”

Is Women's March Madness ready to overtake the Men?

Social media might feel like it’s giving more traction to the Women’s game, but experts don’t necessarily expect that to show up in the viewership numbers just yet.

“There’s certainly a lot more buzz than there used to be,” Giorgio said. “It’s been growing every year for not just the past few years but for 10 years, but it’s hard to compare it versus Men’s.”

But the gap continues to get smaller and smaller between the two sides, and this year's tournament could bridge that gap even further.

One indicator is ticket prices. For the NCAA Tournament Final Four in April, “get-in” ticket prices are currently more expensive for the Women’s game than the Men’s game, according to TickPick. The ticketing site also projects that the Women’s Final Four and Championship game ticket prices will smash any previous records for the Women’s side should Clark and the Hawkeyes make a run to the end.

NCAA "get-in" price comparison.

Getty Images/TheStreet

The caveat is that the Women’s Final Four is played in a stadium that has less than a third of the seating capacity of the Men’s Final Four. That’s why the average ticket prices are still more expensive for the men, although the gap is a lot smaller this year than in previous years.

The gap between the average ticket prices of the Final Four tournaments is getting smaller.

But that caveat pretty much sums up where the women’s game currently stands versus the men’s: There is still a significant gap between the distribution and availability of the former.

While Iowa’s regular season games have garnered millions of viewers, the majority of the most-viewed games are still Men’s contests.

To illustrate the gap between the men’s and women’s game — last year’s Women’s Championship game that saw the LSU Tigers defeat the Hawkeyes was a record-breaking one for the women, drawing an average of 9.9 million viewers, more than double the viewership from the previous year.

One of the main reasons for that increase, as Lewis pointed out, is that last year’s Championship game was on ABC, which was the first time since 1995 that the Women’s Championship game was on broadcast television. The 1995 contest between UConn and Tennessee drew 7.4 million viewers.

The Men’s Championship actually had a record low in viewership last year garnering only 14.7 million viewers, driven in-part due to a lack of hype surrounding the schools that made it to the Final Four and Championship game. Viewership for the Men’s title game has been trending down in recent years — partly due to the effect the pandemic had on collective sports viewership — but the Men’s side had been easily breaching 20 million viewers for the game as recently as 2017.

The 2023 Women's National Championship was the most-viewed game ever, while the Men's Championship was the division's least watched. 

Iowa's Big Ten Championship win on Sunday actually only averaged 6,000 fewer viewers than the iconic rivalry game between Duke and University of North Carolina Men’s Basketball the day prior. However, there is also the case that the Iowa game was played on broadcast TV (CBS) versus the Duke-UNC game airing on cable channel (ESPN).

So historical precedence makes it unlikely that we’ll see the women’s game match the men’s in terms of viewership as early as this year barring another massive viewership jump for the women and a lack of recovery for the Men’s side.

But ultimately, this shouldn’t be looked at as a down point for Women’s Basketball, according to Lewis. The Men’s side has built its viewership base for years, and the Women’s side is still growing. Even keeping pace with the Men’s viewership is already a great sign.

“The fact that these games have Caitlin Clark are even in the conversation with men's games, in terms of viewership is a huge deal,” Lewis said.

Related: Angel Reese makes bold statement for avoiding late game scuffle in championship game

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