Hotel Spas and Revenue Management


This month, we would like to share some articles dealing with spas’ day-to-day operations and revenue/profit strategies. We would like to kick off this series with a post where we will take a look at the benefits that hoteliers can perceive if they add their spas to their revenue management system.

In order to do this, we are going to share some of the insights that Patrick Landman, CEO of Xotels and hotel management expert, shared on a very interesting article published in Tnooz, the global provider of content to the travel, tourism and hospitality industry. Although a challenging issue, the hotel industry needs to change the way it has been operating its spa facilities. Let’ see why.


How to Price Spa Packages

Creating a spa package that sells well is in itself a challenge for most spa operators, let alone finding an appropriate pricing policy for these packages.  It is a fine science, and is not merely a question of finding your most poor selling treatments, putting them into a package and selling them at a huge discount.  If your consumer did not buy the treatment in the first place for the original price, it is highly unlikely that a decrease in price will entice them to buying it.  Spa operators need to understand what consumers want to buy and sell them what they want.


Pricing Strategies: The Right Price


Understanding how to create and implement a coherent spa pricing strategy is essential for maximising yield.

There is no doubt that implementing a coherent pricing policy is one of the key factors for ensuring optimum revenues and higher profits.  But what constitutes a ‘coherent pricing policy’?  What are the important variables that need to be considered in order to maximise yields?  It is not uncommon for spa operators to consider their cost base (mainly cost of labour and product) and add on a profit margin of what they find a ‘reasonable percentage’, especially when entering into new markets with limited competition.  However, there are a number of other important variables that must be considered in order to maximise yields, such as: