Wellness Is Big Business

Wellness is big business.

Wellness tourism is now a $494 billion worldwide industry—and it’s just one segment in a whopping $3.4 trillion global wellness economy—according to a recent report from the Global Spa & Wellness Summit.

The segment’s $494 billion in revenues for 2013 represents an increase of nearly 13% over 2012.

Speakers at a recent Business of Wellness symposium in New York City, organized by the Global Wellness Institute, discussed the booming industry.

While they represented all segments of the wellness industry, there were a number of takeaways of particular interest to travel agents.

Where it all began
Travelers want to visit places where the wellness concept was born, such as India, known for yoga. In turn, these disciplines are being revitalized in  those destinations because of the interest from travelers.

Nazlie Latefi, chief scientific officer for Pegasus Capital Advisors, a private equity firm, said, “Yoga has become popular in the U.S. and has now been revitalized in India because of that. North Americans will want to go back to where yoga originated. “

Desiree Watson, CEO of Wellness Interactive, a consulting company, said that nutritional supplements have historically been important in China and that “we in the business of wellness should look to situations like that for clients who want to see how these things have evolved.”

And Katherine Johnston, senior economist with research company SRI International, said, “The modern concept of spa has evolved in North America but now people want to go back to the places where spa originated.”  

Creating potential customers
The democratization of wellness has created millions of new potential customers, including those interested in travel.

Megabrands like Massage Envy, for example, show that spa treatments are accessible and affordable.

Richard Dantas, former CEO of Carol’s Daughter, a hair care company, said, “It’s great when industries become democratized because it brings many more people into whatever the product or service is. This is not a zero sum game where somebody loses because somebody else gains.”

At Red Door Spa Holdings, CEO Todd Walter said democratization “brings in a new segment of the population which believes they can afford this service. Our industry should not just be about enhancing the lives of rich people.”

Anne Marie Moebes, executive vice president of Well-Being Travel, noted that wellness travelers’ priorities are more frequently “experiential rather than financial.”

Making changes
The society is changing in ways that will benefit wellness travel, according to the speakers.

Joe Cross, CEO of Reboot With Joe, which produces fitness videos, said “We’re seeing changes like a drop in sales of General Mills breakfast cereals while a company like Silk is selling more and more soy milk. This space of wellness, which I call happiness, is the way we are going.”

Americans want to hear how they can make a change and that’s reflected in a survey of 1,000 people who were asked who they thought of when they thought of wellness, Cross added.

The top five were, in order, Dr. Oz of television fame, Jillian Michaels (of The Biggest Loser TV show); television health reporter Sanjay Gupta, weather man and famous dieter Al Roker, and Jared, the Subway advertising star. “This shows a wide open space for us to move into where people will respond to ideas on wellness,” said Cross.

Paying more
Travelers are willing to pay premiums for wellness features like wellness-certified rooms.

Paul Scialla, founder of Delos, a company that specializes in “wellness real estate,“ said that it costs $2,500 and takes three days to get a hotel room “wellness certified.”

That cost will be paid back in six weeks in increased rate because of guest demand, he added.