Pulse May 2018 - Page 69

HOT TOPIC BY KELLY HEITZ Demand Pricing in Spas Airlines do it. Hotels do it. Even golf courses do it. So, why can’t spas get in on the action? emand pricing is a simple yet effective way to increase revenue. By increasing prices during your busiest times— whether that’s in the afternoons, on weekend or on holidays—you can not only give your therapists a slightly higher commission during your most stressful times, but also increase sales exponentially. At this year’s Spa Symposium at Cosmoprof Bologna, ISPA Chairman Garrett Mersberger and ISPA Foundation Chairman Frank Pitsikalis led an inter- esting discussion on demand pricing. “I truly think this is the direction our industry is taking,” Mersberger noted— D with the figures to back it up. The graphic to graphic on the left is a shot of Urban Spa in London’s price listing in their booking software. As you can see, prices are a bit higher during peak times. Guests who prioritize time of service over costs, will be willing to pay a higher price for a premium time slot, and on the flip side, guests who prioritize cost and are flexible with their time will book at a slower time to save money. “At Kohler, we increased our rates by $30 on Saturdays and holidays—that’s 65 days a year,” adds Mersberger. “At 200 services a day, that is a $390,000 increase in sales.” You can choose to list price increases within your booking software like above, or simply note on the bottom of your menu that prices will increase during certain times or days. If you are trans- parent with your customers, you shouldn’t have much push back, if any. “I increased my signature treatment price by $50 right before the holidays, and no one has mentioned anything about it and we book zillions of them,” notes Alena Stavnjak, director of spa at 1 Hotel South Beach in Miami, Florida. “This brings more money for the spa and more for thera pists during some of our busiest times.” n ARE YOU USING DEMAND PRICING IN YOUR SPA? If so, we’d love to hear how it has worked for you! Email kelly.heitz@ispastaff.com to share your story. May 2018 ■ PULSE 67