Pulse August / September 2022 - Page 61

SNAPSHOT SURVEY

PRICING AND OPERATIONS

THE COMBINATION OF EXCEPTIONALLY HIGH LEVELS of demand for spa services , ongoing staffing challenges , supply chain issues and the elimination of most spas ’ pandemic-related restrictions have created new challenges and necessitated a number of operational adjustments around the industry . The June ISPA Snapshot Survey asked spa and resource partner members to share details about those adjustments and other current operational practices .
KEY TAKEAWAY
A SIGNIFICANT NUMBER of spas have raised service prices in 2022 , with nearly three quarters of snapshot respondents ( 73 percent ) reporting increases in the past six months . A further 14 percent of respondents said they plan to raise prices some time this year , while just 12 percent have not raised prices nor have plans to do so in 2022 .
About two-thirds of respondents ( 68 percent ) reported increasing the price of massage services by between five and 12 percent . A similar number of spas ( 63 percent ) said they have raised facial prices by an amount in that same range . As for the guest response to these increases , most respondents said they have seen little pushback , with nearly four in five spas ( 77 percent ) reporting that they have not faced pushback after raising prices .
Has your company increased spa menu prices in 2022 ?
YES
NO , BUT WE PLAN TO LATER THIS YEAR
NO , AND WE HAVE NO SUCH PLANS
RESOURCE PARTNER ROUNDUP
ALTHOUGH 81 PERCENT of resource partner members noted that the total cost of producing their company ’ s offerings has risen at least 10 percent when compared to the time before the COVID-19 pandemic and 84 percent are currently affected by supply chain disruptions , a relatively small number ( 19 percent ) have had to remove a product offering from their inventory due to rising inflation or difficulty obtaining ingredients .
SENIOR CLASS
BEING A MORE SENIOR EMPLOYEE has its
benefits at some spas , which use employees ’ length
of service to guide decisions made about booking ,
scheduling and compensation . Just under half
( 44 percent ) of respondents said they assigned booking
based on employee seniority , while 30 percent consider
Resource partner members who noted the total cost of production has risen at least 10 percent compared to pre-Covid .
Resource partner members currently affected by supply chain disruptions .
Resource partner members who have had to remove a product or offering from its inventory , due to these factors .
seniority when accounting for scheduling preferences .
However , more than a third of spas ( 34 percent ) said
they did not consider seniority when making those
kinds of determinations . n
AUGUST / SEPTEMBER 2022 n PULSE 59