GOP PATH – An Interesting KPI for the Spa Industry?

 

In terms of revenue management, the spa industry has learned lots from the standards that the hotel industry has been using to measure performance. In fact, it was from the hotel industry’s REVPAR (revenue per available room) that we delved into the time element of our operations and adopted REVPATH (revenue per available treatment hour) as one of the most important key performance indicators (KPIs) in our field.

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Re-Defining Yield Management in the Spa Industry

 

In previous posts, we have discussed the importance of adopting effective yield management within the spa and wellness industries. There is little doubt that this is a crucial issue especially with the worldwide revenue our industry generates each year (over US$70 billion) and the ongoing challenges and opportunities we face.

Our previous discussions covered different matters including revenue management for hotel spas, pricing strategies and new models of yield management based on lessons from the hotel sector. In the following post, we would like to focus on what spas are doing to ‘yield manage’ and the key performance indicators (KPIs) they are using. Moreover, we would like to highlight the importance of embracing a more integrated approach for dealing with revenue management.

In order to do this, we will bring into this discussion some of the insights provided by the Spa Revenue Management report elaborated by Kimes, Sheryl E. Singh and Sonee. Let’s have a look.

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