Financial Management

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Applied Economics

September 5, 2023

After a timespan now approaching three years when the world economy has experienced disruptions from Covid, many in the spa industry say the current year feels like the right time to recalibrate. As businesses adjust, a couple of emerging economic realities—product supply and pricing inflation—are frequent discussion topics among spa leaders.

Whether the rate of generalized price increases in the past year is following a natural economic trend or is a byproduct of the pandemic, “the return of inflation was one of the biggest stories of 2022,” as Coryanne Hicks writes for Forbes. “American consumers were coping with price increases the likes of which they hadn’t seen since bell bottoms were all the rage. So it’s only natural for people to be nervous about what’s in store on the inflation front in 2023.” That may be especially true in the spa world and other industries reliant on both professional service offerings and retail sales.

Financial Management for Spas

January 13, 2017

This text is intended to provide spa beginners and veterans alike with a better understanding of financial management.

Financial Management for Spas

November 2, 2022

This text is intended to provide spa beginners and veterans alike with a better understanding of financial management.

Insights to spa revenue management for industry professionals

October 3, 2023

Kristine Huffman for Pulse: Many of us aren’t familiar with the duties of a revenue manager. Tell us a little about that job.

ADAM HAYASHI: When I started in the hospitality industry in the ‘90s, I had no idea what revenue management was. It was still in its infancy, and the airlines were really picking it up. In 2001, I got my first job as a revenue manager at a hotel property. Even back at that point, it was rare to have a property-specific revenue manager focused on the yield and the optimization at each hotel. Fast forward: Now, most brands are prioritizing it. With revenue management strategy, we measure demand through data and trend analysis, and take opportunities to yield our pricing to attract the right guests at the right time, at the right price, through the right channel.

In terms of the discipline itself and how it differs from other departments, it is part of the commercial structure, focused on building the top line revenue and aligned with sales, marketing, digital and e-commerce. And that differs from the function of someone who is a finance director or controller who’s more focused on managing expenses and the accounting side of things.

Pulse: Often day spas and boutique hotels don’t have somebody focused exclusively on revenue management and the primary focus becomes expense management. What would you say to an owner of a smaller boutique property or a day spa to help support the idea that this is a necessary role? How would they get it started?

Keeping Up with the Financial Scorecard

April 3, 2017

A financial report, in simple terms, is your success scorecard. “Financial reports provide information on the health of the business. They are your measure of success,” says Rose Fernandez. vice president of sales for North America at Jurlique, based in Santa Monica, California. 

Pulse Points: The Compensation Situation

March 26, 2021

Money, like politics and religion, is one of those things that isn’t supposed to be discussed at the dinner table. That said, we’re about to dive into the dollars and cents of the spa industry, so if you happen to be reading Pulse at a dinner table, now might be a good time to relocate.

The 2019 ISPA U.S. Spa Industry Study Compensation Supplement may not provide ideal mealtime conversation fodder, but it does offer a clear breakdown of how spa employees are compensated, what they earn and what the staffing picture looks like across the industry. A closer look at the numbers reveals some notable recent trends.

Service Fees, Gratuities and Pricing Structures

September 5, 2023

In an ongoing trend, more spas—especially luxury resorts—are adding automatic service charges to guests’ statements. The additional proceeds largely benefit spa employees, augmenting the general compensation structure that traditionally has included commissions and an hourly rate. Since coming out of the pandemic, some spas are even seeing an increase in the service charge amount.

An ISPA Town Hall session this winter featured a great discussion about the diverse structures of service fees and gratuities that other members are implementing—focusing on what’s working or not working well. Panelists Pat[1]rick McDirmit (Trilogy Spa Holdings), Suzanne Holbrook (Marriott International) and Taylor Fields (PCH Hotels & Resorts) joined ISPA Chair Patrick Huey to share their insights and expertise.

Strategic Savings: Navigating the Tax Benefits of Section 179 for Spa Owners

January 4, 2024

In the ever-evolving spa and wellness industry, savvy owners are keen to optimize their financial strategies. Among various options, Section 179 of the tax code stands out. This underused provision offers significant tax advantages, serving as a key to financial growth for spa businesses.

UNDERSTANDING SECTION 179:

A Financial Lifeline for Spa Owners Section 179 is a vital part of the IRS tax code for spa owners. It allows businesses to deduct the full cost of eligible equipment purchased within the tax year. This encompasses a wide range of assets, from luxurious massage tables to advanced skincare technology.

Uniform System of Financial Reporting for Spas

March 14, 2017

A uniform system of financial reporting establishes standardized formats and account classifications to guide individuals in the preparation and presentation of financial statements.

Uniform System of Financial Reporting for Spas

November 2, 2022

A uniform system of financial reporting establishes standardized formats and account classifications to guide individuals in the preparation and presentation of financial statements.

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