New benchmark data reveals that while beauty and wellness businesses across Europe continue to grow, attracting new clients is becoming more difficult – making digital booking, AI and retention strategies increasingly important for salon business growth
Beauty businesses embracing digital booking, automated demand management and AI-powered customer tools are generating significantly higher revenues than their less digitally mature competitors, according to new research from software provider Zenoti.
The company's inaugural Beauty and Wellness Benchmark Report: Europe found that best-in-class users of digital features generate approximately £6,397 in additional revenue per location per month – equivalent to around £76,764 annually.
The report analysed aggregated and anonymised business performance data from the 2025 calendar year across European salons, spas and aesthetic clinics. Revenue figures were converted into pounds sterling using average exchange rates for the 2024-2025 reporting period. The report compares businesses by segment and performance percentile, including median businesses (50th percentile), high achievers (75th percentile) and top earners (90th percentile).
The findings come at a time when salon business growth is becoming increasingly dependent on retention and operational efficiency rather than new client acquisition.
According to the report, the European beauty and wellness industry grew by 7% between 2024 and 2025. However, like-for-like revenue growth was just 2%, with much of the industry's expansion driven by new site openings rather than stronger performance at existing locations.
New client acquisition falls across beauty, spa and aesthetics
One of the most significant findings in the report is the decline in new guest acquisition across all sectors of the industry.
New guest visits fell by 7% overall, while visits from existing guests increased by 4%, suggesting that customer loyalty and retention are becoming increasingly important drivers of revenue growth.
Salons experienced the sharpest decline in new guest visits, down 9%, while spas saw a 6% reduction and aesthetic clinics recorded a 3% fall.
Despite this challenge, salons delivered the strongest organic performance of any segment, achieving 6% like-for-like growth without any net new location openings.
Zenoti chief executive and co-founder Sudheer Koneru said the businesses best positioned for long-term growth are focusing on customer retention alongside digital transformation.
"With customer acquisition becoming more challenging across the industry, the businesses best positioned for long-term growth are those strengthening retention at the core of their operations," he said.
How digital booking supports salon business growth
The report highlights a strong relationship between digital adoption and business performance, particularly in salons and spas.
Among salon businesses, top earners achieved annual revenues of £1.23 million per location compared with £52,816 among median-performing businesses.
The highest-performing salons also recorded significantly stronger digital engagement metrics. Online bookings accounted for 77% of appointments among top earners, compared with 40% for median businesses. Rebooking rates were also higher, at 41% versus 24%.
A similar pattern emerged within the spa sector. Top-performing spas generated more than £1 million in annual revenue per location and achieved online booking rates of 49%, compared with 23% among median operators.
According to the report, online booking removes friction from the customer journey, captures demand outside business hours and represents one of the clearest opportunities for revenue growth in salon and spa businesses.
AI and automation linked to higher beauty business revenue
The research also examined the impact of AI-powered booking and automation tools on revenue generation.
Zenoti estimates that businesses using advanced digital features can generate around £6,397 in incremental monthly revenue through a combination of demand recovery, pricing optimisation, personalisation and AI-powered booking technology.
Among the largest contributors was AI booking assistant Smartbot AI, which was associated with approximately £1,500 in additional monthly revenue by engaging high-intent clients during the booking process.
Other revenue-driving technologies included automated waitlists, abandoned booking recovery tools, demand-based pricing models and personalised retail recommendations.
The report suggests these technologies are helping businesses recover revenue that might otherwise be lost through cancellations, unfilled appointment slots or incomplete bookings.
Retention remains the biggest opportunity for aesthetic clinics
While aesthetic clinics generated the highest revenues of any segment, they also showed the largest gap between top-performing and median businesses when it came to client rebooking.
Top-performing clinics rebooked 63% of clients compared with 34% among median businesses.
The report identifies rebooking as the most actionable growth lever for clinic operators, while utilisation rates also showed substantial room for improvement, with top earners achieving 80% utilisation compared with 42% among median-performing clinics.
What beauty business owners should focus on in 2026
According to Zenoti's analysis, utilisation remains the most immediate opportunity across salons, spas and aesthetic clinics, with significant performance gaps separating top earners from median businesses.
For salons and spas, increasing online booking adoption is highlighted as a priority, while aesthetic clinics may benefit most from improving client rebooking rates.
Geraldine Fusciardi, senior vice-president and general manager, international at Zenoti, said the data provides operators with a practical benchmark against comparable businesses in their own market.
She said the findings offer a clearer picture of where owners should focus investment and operational attention to support sustainable growth.
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