HOT TOPIC
BY KELLY HEITZ
Demand Pricing in Spas
Airlines do it. Hotels do it. Even golf courses do it.
So, why can’t spas get in on the action?
emand pricing is a
simple yet effective way
to increase revenue. By
increasing prices during
your busiest times—
whether that’s in the afternoons, on
weekend or on holidays—you can not
only give your therapists a slightly
higher commission during your most
stressful times, but also increase sales
exponentially.
At this year’s Spa Symposium at
Cosmoprof Bologna, ISPA Chairman
Garrett Mersberger and ISPA Foundation
Chairman Frank Pitsikalis led an inter-
esting discussion on demand pricing.
“I truly think this is the direction our
industry is taking,” Mersberger noted—
D
with the figures to back it up.
The graphic to graphic on the left is a
shot of Urban Spa in London’s price
listing in their booking software. As you
can see, prices are a bit higher during
peak times. Guests who prioritize time of
service over costs, will be willing to pay a
higher price for a premium time slot, and
on the flip side, guests who prioritize
cost and are flexible with their time will
book at a slower time to save money.
“At Kohler, we increased our rates by
$30 on Saturdays and holidays—that’s 65
days a year,” adds Mersberger. “At 200
services a day, that is a $390,000 increase
in sales.”
You can choose to list price increases
within your booking software like above,
or simply note on the bottom of your
menu that prices will increase during
certain times or days. If you are trans-
parent with your customers, you
shouldn’t have much push back, if any.
“I increased my signature treatment
price by $50 right before the holidays,
and no one has mentioned anything
about it and we book zillions of them,”
notes Alena Stavnjak, director of spa at 1
Hotel South Beach in Miami, Florida.
“This brings more money for the spa and
more for thera pists during some of our
busiest times.” n
ARE YOU USING DEMAND PRICING IN YOUR SPA? If so, we’d
love to hear how it has worked for you! Email [email protected]
to share your story.
May 2018
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