The term triple bottom line (TBL) refers to the economic, social and environmental benefit or loss of an investment, but balancing the three can be tough for businesses.

Most consumers emotionally support the TBL benefits and are cost-conscious, while investors usually demand short-term capital repayment timelines. Many firms believe they need to ensure that the economic bottom-line is achieved before having the luxury of focusing on the broader TBL objectives.

However, in my recent role as CEO at Two Bunch Palms Spa Resort – which was being transformed into a carbon-neutral property – we were able to achieve economic, social and environmental objectives simultaneously and had the best revenue and occupancy ever.

Partnering with Pear Energy we built a 550 kW solar facility that generated the equivalent of the resort’s annual electrical needs. The capital investment generated a 10.5-12 per cent ROI through tax credits and cash payments based on a 21-year amortisation schedule. The 2015-2016 energy bill was 6 per cent less and the resort was less susceptible to public utility rate hikes. These savings flowed straight to the bottom-line and can proportionately reduce operating expenses if energy costs rise in the future.

Equally important, since 80 per cent of Two Bunch Palm’s spa-oriented target market resonated with being environmentally responsible, the brand was better aligned with its customers’ core values, which enhanced consumer loyalty.

Lastly, when the resort introduced a solar field it was able to save the equivalent of 455 trees in just eight months. In the same time, it was able to generate over 500,000 hours of electricity, conserve 14 million gallons of water and offset the equivalent of 200,000lbs of carbon from entering the atmosphere, with more environmental benefit accruing each day.

In my experience, TBL is definitely achievable and by doing good, businesses can do well by reducing operating costs, having a deeper connection with customers and helping the planet along the way.

Kevin Kelly
Email: [email protected]
Tel: +1 520 661 1064

At the Professional Spa & Wellness event in Dubai in February, a thought-provoking panel discussion examined pricing. Each panellist came from a company with a different business structure which left me wondering, does variable pricing work?

Airlines and hotels utilise demand pricing, where the price changes from one minute to the next, but these transactions are based on schedule and convenience, whereas when booking a spa treatment, time can be managed more and is more flexible. 

I agree that resort spas should look at increasing prices in peak season to maximise revenues; and adjust prices in the off-season, when the demand drops, along with the hotel rates.

This is because seasonal pricing is less likely to upset guests, compared to having one treatment price on a Monday while getting charged a higher rate a couple of days later.

I asked one of our spas in California – which practices weekday versus weekend prices – if guests were ever upset at the difference in prices. The answer was no. The spa’s normal asking price was the weekend rate, so the lower selling rate in the week was perceived as a discount. 

It made me consider different spa models and what works in different environments. If spas are utilising discounts properly in off-peak periods and practicing yield management in peak times, this could also be interpreted as variable pricing. Food for thought.

Lindsay Madden-Nadeau
Email: [email protected]
Phone: +971 4 437 7434

When was the last time you were given a hardcopy food/drinks menu in a restaurant? Maybe not so long ago, as the majority still distribute hard copies as well as having online versions. Same for most spas. 

But as more spas gradually introduce real-time online booking options, it leads me to question whether printed spa menus are outdated?

The way some spas request customers to phone or email to make a booking definitely seems outmoded.

A phone call may not always be a preferred way of contact for a travelling guest or busy spa reception, for example.

An email bears the risk of time delays: message has to be sent, replied to and confirmed by both sides, etc.

Spa online booking is one answer, with operators who choose this route seeing an increase in revenue from more appointments released. One spa software company reports that spas which offer online, real-time booking are seeing up to 10 per cent of appointments made that way.

Meanwhile, Mandarin Oriental is taking its online booking a step further with the paperless spa, checking guests in from tablets.

It will be interesting to observe the technological development in our industry. I don’t believe that print spa menus are going to – nor should – disappear entirely, but I am a total fan of the paperless office and online booking.

Anja Eva Keller
Email: [email protected]
Tel: +43 650 485 3773