Day Spas and Tanning Salons

The 30,900 day spas and tanning salons in the US provide personal care services to clients, including massages, indoor and sunless tanning, skincare treatments, and nail care treatments. Day spas and tanning salons also sell skincare and body care products, cosmetics, candles, vitamins and nutritional supplements, and other retail products. Some day spas also offer hair care services.

Competition for Services

Day spas face competition from other providers of massages and skin treatments, including hotel and resort spas, medical spas, fitness centers, independent masseuses, nail salons, and dermatology practices.

Indoor Tanning Health Concerns

Concerns over the health risks of using tanning beds threaten to reduce demand for tanning salons.

Sep 9, 2026 - Spa Visits Rise as Profits Tighten

• US day spas entered 2026 with demand still growing but profitability under pressure: industry revenue rose 4.2% to a record $23.5 billion in 2025 and visits increased 1.8% to 191 million, while the share of non-hotel/resort spas with profit margins above 10% fell to 60% from 67%, according to a Spa Business report on ISPA data. Day spas remained the dominant format, accounting for 78% of all spa locations, or about 17,200 establishments. Average spend per day-spa visit was $110, below the $181 generated by resort and hotel spas. Staffing remained the top challenge, cited by one-third of respondents. The outlook is positive for demand, but operators face pressure to protect margins through better labor productivity, memberships, marketing, scheduling and space utilization.
• Weakening consumer confidence in August raises the risk of softer traffic and lower average tickets for US day spas and tanning salons, especially for services customers can easily postpone, such as facials, massages, tanning sessions and premium add-ons. The University of Michigan Index of Consumer Sentiment fell 6.3% from July to 51.7 and was 11.2% below a year earlier, increasing the likelihood that consumers stretch the time between visits or trade down to lower-priced services. Separately, The Conference Board Consumer Confidence Index slipped to 89.4 from 90.2 in July. Its Expectations Index fell to 68.2 as consumers became more pessimistic about jobs, income and business conditions. For operators, this could pressure utilization and margins while increasing the importance of memberships, bundled packages, recurring appointments, and value-oriented promotions.
• Growth accelerated for non-membership spas in 2025, while membership-based operators lost momentum, according to Zenoti's 2026 Beauty and Wellness benchmark report, signaling changing customer behavior across the spa industry. Non-membership spas saw location growth accelerate from 4% to 13%, same-store revenue growth improve from 2% to 3%, and cancellation rates fall from 11% to 9%. By contrast, membership spas experienced same-store revenue growth slow from 5% to 2%, while existing guest visits declined 2%, highlighting the need to improve member engagement and retention. The report also found that spas using AI-powered customer service tools achieved 3%–4% sales growth, compared with about 2% for non-users, helping offset softer new client acquisition. For US day spas and tanning salons, investing in digital booking, proactive client engagement, and AI tools may help drive growth as competition for new customers intensifies.
• A growing number of states are moving toward multi-state cosmetology licensing, a shift that could reshape hiring and workforce mobility for the US day spas industry, according to an American Spa report. Eleven states are expected to begin issuing multi-state cosmetology licenses in 2026, while additional states are considering similar legislation for cosmetology and esthetics professionals. Greater license portability may help spas and salons address staffing shortages, recruit workers more efficiently, and support employees relocating due to military transfers, economic conditions, or natural disasters. However, implementation will vary by state, and operators will still need to navigate differing local regulations and licensing requirements.

Industry size & Structure

The average day spa has 16 employees and generates over $842,000 in annual revenue, while the average tanning salon has 6 employees and generates about $275,000 in annual revenue.

• The spa industry in the US has about 21,500 locations, employs 345,000 people, and generates about $18 billion in annual revenue. About 80% of locations are day spas, with the remainder consisting of hotel and resort spas, destination spas, and medical spas.
• Tanning salons in the US have about 9,400 locations, 60,500 employees and generate about $2.6 billion in annual revenue.
• US consumers made 191 million visits to spas in 2025, according to the International SPA Association.
• Most day spas and tanning salons are independently owned and operated. Franchise locations of large chains account for less than 5% of industry revenue.
• Day spa chains include Massage Envy, Woodhouse Day Spa, and Bliss.
• Tanning salon chains include Palm Beach Tan, Planet Beach Tan, Hollywood Tans, and LA Tan.