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A sunnier business for tanning salons

Posted on: September 2, 2009

tanning-bed-switch spray tanAs beach season comes to an end and people head back to the tanning salons to maintain their hard-earned summer bronzing, there are major changes occurring in the tanning salon business. 

Everyone knows the growing concerns about skin cancer is hindering the $2.7 billion tanning salon industry, which industry research firm IBISWorld expects will decline by 5.1 percent this year.  However, the shift in consumers moving from tanning beds to tanning sprays may actually be a ray of light for the industry. 

“By far, ray-lamp skin tanning is the number one revenue source for tanning salons at 72 percent, but growing awareness of the high cancer risk associated with their use continues to diminish market share,” said George Van Horn, senior analyst with IBISWorld. “Profit levels are higher with spray-on tanning booths; therefore the shift toward these substitutes may actually improve the industry.”

Although UV-bed tanning sessions on average cost from $5 to $7, the industry is reliant on high turnover, with sessions typically lasting 15 to 20 minutes. The rising popularity of spray-on tanners, which now account for 11 percent of industry revenue, is expected to grow to a whopping 17 percent in 2009.
 
“Tanning salons are operating in a mature market, and to stay in the game salons need to adapt to market trends and offer innovative spray-on tanning products and services,” added Van Horn. “Because this is a long-term shift, those who diversify their menu, such as providing health and beauty services, will also have a greater chance in generating revenue.”

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2 Responses to "A sunnier business for tanning salons"

One of the best USP for any tanning salon or salon chain would be to offer service, which says, their tanning salon reduces the risks of cancer by 99% . What do you say ?

One of the best USP for any tanning salon or salon chain would be to offer service, which says, their tanning salon reduces the risks of cancer by 99% . What do you say ?

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