ISPA Academy Articles
Two years ago, Pulse explored revenue management in the spa industry. It was a time when many facilities were emerging from the darkest days of pandemic closures and trying to reimagine income models and new prospects for profitable practices. Now, as many spa leaders plan their operational budgets for 2024 and look for creative opportunities to become more efficient and more in tune with market demand, this is an apt time for a review of revenue management.
The general premise of revenue management is simple: Customers are willing to pay more for services during peak periods and—conversely—they may be tempted to alter their schedules to take advantage of special-value pricing in non-peak hours.
The airline industry is the go-to example of a service built on the revenue management model: Try booking a flight for Sunday afternoon or Monday morning, when you’re competing with business travelers, and you’ll find your ticket price is as much as double the fare for the same trip on a midweek evening. Likewise, a summertime excursion to a family vacation destination will almost always be more expensive than the same flight during the school year. So you, as the traveler, have a choice whether to pay more for convenient scheduling, or to rearrange your timetable to take advantage of bargain pricing.
The hotel industry adopted revenue management practices decades ago, but the spa industry has been slow to follow suit. ISPA member surveys consistently indicate the majority of spas operate on a static price schedule or institute only the most basic variable pricing with adjustments by season or day of week.
The spa industry’s hesitancy to fully embrace the strategies of revenue management may be rooted in several factors, from the perceived— and actual—complexity of developing a revenue management system to concerns that guests will respond unfavorably to any such changes. Those concerns are certainly valid, but they can also be overcome through education and careful planning. In this issue of Pulse are presented several articles meant to demystify the concepts behind revenue management, assess its potential within the spa industry and help spa leaders determine how—or whether—to apply its principles to their businesses.
Deep-tissue massage directed specifically at muscles used in athletic activities. This massage can be either preventive or corrective in approach.
With retail sales trends the hottest topic in the spa industry this summer, ISPA’s August Town Hall focused on successful retail and product inventory strategies. Several spa professionals shared insights relating to best practices, team training, inventory techniques, post-pandemic ordering practices and more. Panelists included Jennifer Wayland-Smith, owner of Wayland-Smith Consulting; Jamee Taylor, vice president of spa and retail at Tricoci Salon and Spa; Maylin Rojas, director of spa and retail at Nobu Eden Roc Miami; and Timothy Williams, director of spa and resort shops at The Ritz-Carlton Key Biscayne, Miami. Kelleye Martin, ISPA vice chair, participated as moderator. ISPA thanks Body Bliss for sponsoring this Town Hall.
TWO BIG QUESTIONS IN RETAIL ARE:
- How can spas determine how much inventory to stock?
- At what point in the year should spas begin buying for the next season—or even for the next year?
This treatment involves the use of sugar often mixed with oils and applied to the skin with the intent to remove dead skin cells from the skin’s epidermis. The exfoliation is achieved by both a mechanical (manual) and a chemical means. The alpha hydroxy acid from the sugar loosens the bonds between dead skin cells and the coarseness of the sugar gently sloughs them away. The exfoliation not only leaves the skin with a better appearance and texture, but the treatment also increases the blood circulation and cell generation.
Rooted in ancient practices, sugaring is the most natural and long-lasting treatment for eliminating unwanted hair from all areas of the body for both men and women. Using only 100% natural ingredients, it is the least painful of all hair removal techniques and is great for all skin types.