Spa operators are faced with numerous operational challenges, including the efficient utilisation of booking systems, staff and facilities to optimise profitability – particularly the optimal use space, both revenue and non-revenue-generating.
For a spa to achieve its potential as a tangible asset, operators know they have to be dynamic in their pricing, availability and service offering and although savvy managers will generally advise against discounting across the board – particularly in luxury markets where it can be seen to devalue a brand – yield management has proven to be a powerful revenue maximisation tool.
Opportunity for more profit
“We believe spa and wellness operators need to be creative with revenue management and take a cue from how the airline and hotel industry manages unused inventory,” says Sammy Gharieni. “The products on offer are perishable and capacity is fixed, so using yield management tools brings into greater focus what can also be done with non-revenue-generating spaces in order to drive maximum profits.”
There are many options in the yield management toolbox: adding extras on top of existing treatments can increase profits and differentiate spa offerings, for example.
Gharieni’s Mind/Body Wellness Technologies have been designed to work both individually and as standalone treatments and also to be integrated into a spa’s treatment menu to create bespoke treatments and offer unique experiences.
Touchless drives ROI
Gharieni’s RLX Satori Wellness Lounger provides clients with an effortless way to improve their mental and physical wellbeing while creating a deeply relaxing and enjoyable experience – without the need for a dedicated therapist.
As a standalone treatment, this creates an opportunity to make use of non-revenue-generating spaces, while cutting down on therapist time. It also provides an instant solution for staff shortages, while additional benefits include the delivery of consistent results and reduction in therapist fatigue.
Gharieni’s touchless technologies can also prevent lost revenue due to unexpected unavailability of staff.
“Touchless technologies can make a valuable contribution to yield management in many ways,” says Gharieni. “By adding value to spa protocols in treatment rooms which traditionally only generate revenue when a therapist is involved, or integrating them into non-revenue-generating spaces, turning them into sources of income.
“To date yield management in spas is not being used to its full potential” says Gharieni. “In order to maximise it, accurate assessments must be made of spa’s individual needs, as the pursuit and delivery of meaningful experiences should remain the main priority for any wellness space – one that combines innovative products and services to provide value and align with what’s important to guests.”
More: www.gharieni.com
