MONEY MATTERS
CONTINUED
because they help us make this entire system stronger and more streamlined . At the same time , take that feedback and look into ways to improve communications in order to avoid issues in the future .”
As Always , Communication is Crucial
That final point about communication is as critical a part of successfully implementing a yield management strategy as any other . After all , no matter how well a spa has analyzed its booking data and guest profiles , failing to communicate shifts in pricing clearly and effectively can lead to plenty of frustration for both spa leaders and guests .
Part of that communications plan , says Shane Bird , is about planning ahead , so that any adjustments made to the spa ’ s pricing structure doesn ’ t carry a prohibitive cost .“ Twenty-two years ago , when I started , all we had were paper menus . But nowadays , if you ’ ve got your menu on your website , and you ’ ve got your menu virtually available on a mobile device , and your guests can book online , and you also have printed collateral , you ’ d better make sure that you ’ ve got those boxes ready to check ,” he says .“ Do it in a way where there ’ s plenty of time because it usually involves a sales and marketing team , and an IT team , and it might be a printing team . And then obviously there ’ s getting your own team trained . Because you ’ re going to get that one guest who comes in and says they saw a different price on your website . It ’ s like ,‘ Oh no ! We forgot the website !’”
Assuming that all of those boxes are checked , there ’ s no doubt that yield management can have a serious impact on a spa ’ s financial well-being . A minor adjustment Verena Lasvigne-Fox made recently at Four Seasons Philadelphia illustrates that impact perfectly . Because Friday business at the spa has recently begun to rival Saturday and Sunday levels , she yielded service prices up US $ 20 from their present levels and made a US $ 10 adjustment to Thursday ’ s prices in response to increased demand on that day .“ It took me 45 minutes to update our software system , and I added a bit over $ 40,000 to our bottom line for this year .”
At a time when demand for spa services is ramping back up ahead of the economy ’ s wider reopening throughout 2021 , it seems clear that spa leaders should give yield management a serious look to make the most of their recovery . n
“ You ’ re using a scalpel more than a shotgun . Even if you said , ‘ My services after six pm are five dollars less ,’ you ’ d be amazed what five bucks does for a consumer ! And you ’ ve booked those hours that maybe aren ’ t as bookable — it ’ s amazing what that will add up to over time .”
— SHANE BIRD
36 PULSE ■ MAY 2021