FACIAL TREATMENTS
SATURDAY ONLY
“ I think , in spa , we ’ re just stuck in our traditional ways .”
— Alena Stavnjak
WHAT ’ S THE HOLD UP ?
Despite the prevalence of revenue management practices in other industries , the spa industry has been somewhat
hesitant to adopt those strategies . ISPA Snapshot Survey data from earlier this year indicates that about two-thirds of spas ( 63 percent ) practice flat pricing , while nearly 9 in ten ( 88 percent ) do not adjust the availability of treatments based on demand , the service ’ s margin or any other factor .
According to Damien Craft , executive director of spa & wellness at Amrit Ocean Resorts & Residences , there is a simple explanation for the industry ’ s apparent reluctance : “ It ’ s not traditionally how we ’ ve done things in the industry ,” Craft says . “ It ’ s a time of change , and nobody likes change , and changes are difficult . The hesitancy is because it ’ s new .”
Alena Stavnjak , director of spa and retail at Bamford Wellness Spa at 1 Hotel South Beach , agrees with Craft . “ I
think , in spa , we ’ re just stuck in our traditional ways ,” she says . She adds that , because part of the tradition she references revolves around guest satisfaction , some spa leaders may balk at adopting a revenue management strategy that involves variable or dynamic pricing due to a fear of alienating guests . For her part , Stavnjak is setting aside
that kind of trepidation this October when her spa debuts
a variable pricing model that will see weekend guests paying slightly more for some of the spa ’ s most popular services . “ We ’ re going to start with October and November , because it ’ s still in our slower season , and see how it is perceived ,” Stavnjak says . Stavnjak is confident that a clear and thorough communications plan ( and the fact that her spa has not raised prices in the five years since they opened ) will go a long way toward managing potential guest concerns .
Like Stavnjak , many spa leaders approach revenue management from the pricing side , instituting variable pricing models based on which days tend to be most popular with spa-goers . One alternative option — explored in detail in the previous article in this series — would be to make only treatments with higher profit margins available during the most in-demand time periods for spagoers . Assuming that those time periods were booked at a normal rate , the spa could increase its margins considerably compared to what it might have earned if no limitations were placed on which services could be booked at
a given time .
THE TIME IS NOW ( OR IS IT ?)
Many throughout the spa industry have longed for a “ return to normal ” after more than a year and a half spent responding to the demands of the COVID-19 pandemic . But when it comes to revenue management , it may be worth asking whether “ normal ” is actually a good thing . For Suzanne Holbrook , Marriott International ’ s senior corporate director
OCTOBER 2021 � PULSE 19