GET SPA BUSINESS
magazine
Yes! Send me the FREE digital editions of Spa Business and Spa Business insider magazines and the FREE weekly Spa Business and Spa Business insider ezines and breaking news alerts!
Not right now, thanksclose this window
Uniting the world of spa & wellness
Get Spa Business and Spa Business insider digital magazines FREE
Sign up here ▸
News   Features   Products   Company profilesProfiles   Magazine   Handbook   Advertise    Subscribe  
Everyone’s talking about
Pay-what-you-can packages

Could asking customers to pay only what they can afford for spa retreats and services be a way to widen access, while still looking after the bottom line? Kath Hudson investigates


Pay what you can and pay it forward are already established models in other sectors. The waste food café movement invites people to pay what they can spare and opens up the eating-out experience to those on less or no income. Some in the arts sector, for example, Battersea Arts Centre in London, offer pay-what-you-can tickets for performances and encourage those with more money to pay above the standard ticket price. This is a move which has had a great impact on allowing different demographics to access its shows, it reports.

The wellness sector is a great fit for egalitarian principles and spas are starting to take note. The Dreaming, a Welsh retreat opened by celebrity singer Charlotte Church, is offering one place on each package on a pay-what-you-can basis to make it more inclusive.

Could pay-what-you-can work as a way of broadening access to the wellness industry? And would it be able to do this while still turning a profit? What else might be a feasible way for the industry to be more inclusive – especially given the cost of living crisis – to those who can’t currently afford to pay full price? We take a closer look…

Ali Gunning founder
Resonant Being
photo: Ali Gunning

I’d like all types of wellness to be open to everyone, regardless of their financial and life circumstances. I run a variety of sound healing events with different pricing, which means there’s usually an opportunity which is accessible to everyone.

Concessions are planned into my offerings, so I don’t regard them as a financial hit. On top of this, two spaces are available for people who cannot afford any financial contribution and I also offer the option of exchanging a place for helping me pack up. I’ve noticed other practitioners invite participants to pay extra, if they can, to support people who can’t pay full price.

I don’t ask for any proof of what people can afford, they just choose the option which is right and applicable for them. Some people might have had a hard month and attend for free, but pay full price the following month. For me, trust and adaptability are central to a wellbeing business.

All businesses have different overheads and responsibilities, but I feel generosity is a spontaneous quality and it shows you have confidence in your offering. Being of service is part of a spiritual path which doesn’t have to be separate from running a business. That doesn’t have to mean doing everything for free, but it may mean thinking about working in ways which benefit a wider range of people.

Going forward, I think we will see more creativity in pricing options as interest in self-care grows.

Generosity is a spontaneous quality which shows you have confidence in your offering
Lauren Moloney
CEO and founder, The Spa Collaborative
photo: The Spa Collaborative

It feels possible spas could experiment with a pay-what-you-can-afford approach, although if it’s adopted it would likely be challenging to operationalise. Any spa interested in initiating this type of offer should first establish its key objective. If any part of the objective is to generate PR citing charity or altruism it could be seen as cause-related marketing and ultimately devalue and derail any real benefit.

A more feasible, transparent and realistic option to broaden access to wellness would be to implement strategic dynamic pricing or clear charitable initiatives. This could include mid-week rates or morning rates, which offer a base entry-level option for guests during times when the spa has availability. Another option could be organising mobile spa excursions to care homes, hospitals, or youth centres.

To truly expand the benefit of spa experiences to those who may not be able to afford the listed price, it’s important to clearly define the target group and then research and understand this demographic and how your business can best address their needs. It’s not a spa’s role to determine what individuals can or cannot afford, nor should we judge their wealth or worthiness. Instead, a simple, targeted and transparent approach is the best way to deliver this type of endeavour.

Dynamic pricing is a more feasible, transparent and realistic option than pay-what-you-can
Donna Lancaster
Founder, Deepening into Life
photo: Chris Brock

Ioffer pay-what-you-can slots at my personal development and healing workshops. The amount of these varies – if a workshop doesn’t sell out, I offer the remaining spaces as free or pay-what-you-can. I also hold regular pay-what-you-can events, like Circle of Grace, which are specifically for people who can’t afford to access my other workshops but want to do inner work. On average I’d say there are five to 10 people who come on free or discounted places at my one-day workshops.

Coming from a very poor background myself, I know only too well how hard it can be to access health and wellbeing resources. In my view, retreats are not a luxury but a necessity for physical, emotional, intellectual and spiritual wellbeing. Frankly, those who struggle the most financially – like many single mums – deserve a retreat and I don’t like the idea of them being limited to wealthy, privileged people.

I find that most people who can pay a little more do and this helps mop up some of the financial losses. But I’m also okay with working for free at events sometimes so people can still access my services. If someone can’t afford to pay anything at all, they can help in other ways, like setting out chairs, making tea or even bringing cakes. It’s important they feel like they’re contributing in some way as lack of money comes with a lot of shame for many.

I don’t ask for proof that people can’t pay much, I trust them and I’ve never really experienced people taking advantage. I simply make it clear in my promotions/website that places will be made available for free or pay-what-you-can, for those who need it. I also make it clear that these slots are not for people who have the money but are simply not willing to invest in themselves.

It feels good and right, kind and loving to offer pay-what-you-can and the world needs more of this! There are more important things than making a profit. Often the benefits are just as much for those who offer the pay-what-you-can places, as for those who receive them. It’s a win-win for the heart and soul.

Coming from a very poor background, I know how hard it can be to access wellbeing resources
Roger Allen
CEO, RLA Global
photo: RLA Global

Successful brands want to be seen as making a positive contribution to society and as a gesture and intention, the pay-what-you-can option is of tremendous value. However, how operators sustain it is specific to the brand, the offering and the market segmentation.

It also needs to be taken into consideration that flexible pricing of services requires buy-in from multiple stakeholders, including front-line staff who need to administer it. In addition, brands have to be conscious of how to offer it so that consumers who can afford the experience do not take advantage of the initiative.

In some industries, flexible pricing is easier to control and manage. Take Pret A Manger for example, the hugely successful sandwich franchise was able to apply lower product pricing in its shops in neighbourhoods which have a lower income bracket. This is a manageable and controllable solution for discounting and a way of targeting a particular segment with a charitable intention.

With a singular outlet, allowing people to pay what they can afford is open to abuse. But it could work for those who can apply discretion in their pricing, such as people who are self-employed, one-person or small businesses.

In some industries, flexible pricing is easier to control and manage
Ingo Schweder
CEO, GOCO Hospitality
photo: GOCO Hospitality

Even when the wellness industry was booming pre-pandemic concerns were being raised about it focusing on wealthy customers, while global inequality increased and the world’s poorest – who are most likely to suffer from sickness, depression and premature death – were unable to access the benefits. And since COVID-19, many have even less disposable income.

Going forward, the importance of balancing health with financial subsistence will become an increasingly mainstream topic of discussion. The wellness industry must acknowledge this narrative and address a growing number of guests with more moderate budgets. This may lead to diversification and a natural shift towards greater democratisation, manifesting in more provision of mid-range wellness offerings and increasing accessibility.

During the pandemic, we opened Glen Ivy Hot Springs up to people on a pay-what-you-can-afford basis, as we wanted to do good and be emotionally close to regulars during a time of global stress. Some people were outright cheap and took full advantage, only paying 10 per cent of the real costs, while others were more mindful. However, we’ve experienced a substantial interest in the growth of a more democratised wellness model and have created, and are developing, more offers aimed at the wide middle class. I firmly believe the greater population needs to partake in more, often rather simple, wellness regimes and be exposed to the many offerings available to get healthier, feel better and function more consciously.

Some people took full advantage, only paying 10 per cent of the real costs
Glen Ivy Hot Springs offered a pay-what-you-can package in the pandemic / photo: Glen Ivy
FEATURED SUPPLIERS

Crafting luxury: Beltrami Linen's bespoke spa solutions
Beltrami Linen’s approach to the world of spa is underpinned by a strong emphasis on bespoke design, where close collaboration with customers and their designers is always of the utmost importance. [more...]

Elevate your spa business: master global standards and thrive in Saudi Arabia's tourism boom
Discover how to prepare your spa or wellness facility for the influx of international guests and meet global standards as tourism in Saudi Arabia surges. [more...]
+ More featured suppliers  
COMPANY PROFILES
Oakworks Inc

Oakworks is a US-based FSC-certified manufacturer of spa, massage, and medical equipment. [more...]
TechnoAlpin

TechnoAlpin is the world leader for snowmaking systems. Our product portfolio includes all different [more...]
+ More profiles  
CATALOGUE GALLERY
 

+ More catalogues  

DIRECTORY
+ More directory  
DIARY

 

28-30 Apr 2024

Spa Life Scotland

Radisson Blu Hotel, Glasgow,
08-08 May 2024

Hospitality Design Conference

Hotel Melià , Milano , Italy
+ More diary  
 
ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
 
SPA BUSINESS
SPA OPPORTUNITIES
SPA BUSINESS HANDBOOK
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS
ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2024
Uniting the world of spa & wellness
Get Spa Business and Spa Business insider digital magazines FREE
Sign up here ▸
News   Products   Magazine   Subscribe
Everyone’s talking about
Pay-what-you-can packages

Could asking customers to pay only what they can afford for spa retreats and services be a way to widen access, while still looking after the bottom line? Kath Hudson investigates


Pay what you can and pay it forward are already established models in other sectors. The waste food café movement invites people to pay what they can spare and opens up the eating-out experience to those on less or no income. Some in the arts sector, for example, Battersea Arts Centre in London, offer pay-what-you-can tickets for performances and encourage those with more money to pay above the standard ticket price. This is a move which has had a great impact on allowing different demographics to access its shows, it reports.

The wellness sector is a great fit for egalitarian principles and spas are starting to take note. The Dreaming, a Welsh retreat opened by celebrity singer Charlotte Church, is offering one place on each package on a pay-what-you-can basis to make it more inclusive.

Could pay-what-you-can work as a way of broadening access to the wellness industry? And would it be able to do this while still turning a profit? What else might be a feasible way for the industry to be more inclusive – especially given the cost of living crisis – to those who can’t currently afford to pay full price? We take a closer look…

Ali Gunning founder
Resonant Being
photo: Ali Gunning

I’d like all types of wellness to be open to everyone, regardless of their financial and life circumstances. I run a variety of sound healing events with different pricing, which means there’s usually an opportunity which is accessible to everyone.

Concessions are planned into my offerings, so I don’t regard them as a financial hit. On top of this, two spaces are available for people who cannot afford any financial contribution and I also offer the option of exchanging a place for helping me pack up. I’ve noticed other practitioners invite participants to pay extra, if they can, to support people who can’t pay full price.

I don’t ask for any proof of what people can afford, they just choose the option which is right and applicable for them. Some people might have had a hard month and attend for free, but pay full price the following month. For me, trust and adaptability are central to a wellbeing business.

All businesses have different overheads and responsibilities, but I feel generosity is a spontaneous quality and it shows you have confidence in your offering. Being of service is part of a spiritual path which doesn’t have to be separate from running a business. That doesn’t have to mean doing everything for free, but it may mean thinking about working in ways which benefit a wider range of people.

Going forward, I think we will see more creativity in pricing options as interest in self-care grows.

Generosity is a spontaneous quality which shows you have confidence in your offering
Lauren Moloney
CEO and founder, The Spa Collaborative
photo: The Spa Collaborative

It feels possible spas could experiment with a pay-what-you-can-afford approach, although if it’s adopted it would likely be challenging to operationalise. Any spa interested in initiating this type of offer should first establish its key objective. If any part of the objective is to generate PR citing charity or altruism it could be seen as cause-related marketing and ultimately devalue and derail any real benefit.

A more feasible, transparent and realistic option to broaden access to wellness would be to implement strategic dynamic pricing or clear charitable initiatives. This could include mid-week rates or morning rates, which offer a base entry-level option for guests during times when the spa has availability. Another option could be organising mobile spa excursions to care homes, hospitals, or youth centres.

To truly expand the benefit of spa experiences to those who may not be able to afford the listed price, it’s important to clearly define the target group and then research and understand this demographic and how your business can best address their needs. It’s not a spa’s role to determine what individuals can or cannot afford, nor should we judge their wealth or worthiness. Instead, a simple, targeted and transparent approach is the best way to deliver this type of endeavour.

Dynamic pricing is a more feasible, transparent and realistic option than pay-what-you-can
Donna Lancaster
Founder, Deepening into Life
photo: Chris Brock

Ioffer pay-what-you-can slots at my personal development and healing workshops. The amount of these varies – if a workshop doesn’t sell out, I offer the remaining spaces as free or pay-what-you-can. I also hold regular pay-what-you-can events, like Circle of Grace, which are specifically for people who can’t afford to access my other workshops but want to do inner work. On average I’d say there are five to 10 people who come on free or discounted places at my one-day workshops.

Coming from a very poor background myself, I know only too well how hard it can be to access health and wellbeing resources. In my view, retreats are not a luxury but a necessity for physical, emotional, intellectual and spiritual wellbeing. Frankly, those who struggle the most financially – like many single mums – deserve a retreat and I don’t like the idea of them being limited to wealthy, privileged people.

I find that most people who can pay a little more do and this helps mop up some of the financial losses. But I’m also okay with working for free at events sometimes so people can still access my services. If someone can’t afford to pay anything at all, they can help in other ways, like setting out chairs, making tea or even bringing cakes. It’s important they feel like they’re contributing in some way as lack of money comes with a lot of shame for many.

I don’t ask for proof that people can’t pay much, I trust them and I’ve never really experienced people taking advantage. I simply make it clear in my promotions/website that places will be made available for free or pay-what-you-can, for those who need it. I also make it clear that these slots are not for people who have the money but are simply not willing to invest in themselves.

It feels good and right, kind and loving to offer pay-what-you-can and the world needs more of this! There are more important things than making a profit. Often the benefits are just as much for those who offer the pay-what-you-can places, as for those who receive them. It’s a win-win for the heart and soul.

Coming from a very poor background, I know how hard it can be to access wellbeing resources
Roger Allen
CEO, RLA Global
photo: RLA Global

Successful brands want to be seen as making a positive contribution to society and as a gesture and intention, the pay-what-you-can option is of tremendous value. However, how operators sustain it is specific to the brand, the offering and the market segmentation.

It also needs to be taken into consideration that flexible pricing of services requires buy-in from multiple stakeholders, including front-line staff who need to administer it. In addition, brands have to be conscious of how to offer it so that consumers who can afford the experience do not take advantage of the initiative.

In some industries, flexible pricing is easier to control and manage. Take Pret A Manger for example, the hugely successful sandwich franchise was able to apply lower product pricing in its shops in neighbourhoods which have a lower income bracket. This is a manageable and controllable solution for discounting and a way of targeting a particular segment with a charitable intention.

With a singular outlet, allowing people to pay what they can afford is open to abuse. But it could work for those who can apply discretion in their pricing, such as people who are self-employed, one-person or small businesses.

In some industries, flexible pricing is easier to control and manage
Ingo Schweder
CEO, GOCO Hospitality
photo: GOCO Hospitality

Even when the wellness industry was booming pre-pandemic concerns were being raised about it focusing on wealthy customers, while global inequality increased and the world’s poorest – who are most likely to suffer from sickness, depression and premature death – were unable to access the benefits. And since COVID-19, many have even less disposable income.

Going forward, the importance of balancing health with financial subsistence will become an increasingly mainstream topic of discussion. The wellness industry must acknowledge this narrative and address a growing number of guests with more moderate budgets. This may lead to diversification and a natural shift towards greater democratisation, manifesting in more provision of mid-range wellness offerings and increasing accessibility.

During the pandemic, we opened Glen Ivy Hot Springs up to people on a pay-what-you-can-afford basis, as we wanted to do good and be emotionally close to regulars during a time of global stress. Some people were outright cheap and took full advantage, only paying 10 per cent of the real costs, while others were more mindful. However, we’ve experienced a substantial interest in the growth of a more democratised wellness model and have created, and are developing, more offers aimed at the wide middle class. I firmly believe the greater population needs to partake in more, often rather simple, wellness regimes and be exposed to the many offerings available to get healthier, feel better and function more consciously.

Some people took full advantage, only paying 10 per cent of the real costs
Glen Ivy Hot Springs offered a pay-what-you-can package in the pandemic / photo: Glen Ivy
LATEST NEWS
Bannatyne has bounced back from the pandemic
The Bannatyne Group says it has officially bounced back from the pandemic, with both turnover and profits restored to pre-2020 levels in 2023, according to its year-end results.
Sport England’s Active Lives insight finds record activity levels, but enduring health inequalities
While British adults are the most active they’ve been in a decade, health inequalities remain with the same groups missing out, according to Sport England’s latest Active Lives Adults Report.
Kerzner to expand Siro portfolio with recovery-focused hotels in Los Cabos and Riyadh
Kerzner International has signed deals to operate two new Siro recovery hotels in Mexico and Saudi Arabia, following the launch of the inaugural Siro property in Dubai this February.
Nuffield Health calls for National Movement Strategy as research shows decline in fitness levels among some consumers
Nuffield Health’s fourth annual survey, the Healthier Nation Index, has found people moved slightly more in 2023 than 2022, but almost 75 per cent are still not meeting WHO guidelines.
US spa industry hits record-breaking US$21.3 billion in revenue in 2023
The US spa industry is continuing its upward trajectory, achieving an unprecedented milestone with a record-breaking revenue of US$21.3 billion in 2023, surpassing the previous high of US$20.1 billion in 2022.
Immediate rewards can motivate people to exercise, finds new research
Short-term incentives for exercise, such as using daily reminders, rewards or games, can lead to sustained increases in activity according to new research.
Shannon Malave appointed spa director at Mohonk Mountain House
Spa and wellness veteran Shannon Malave has been named spa director at iconic US spa destination Mohonk Mountain House.
Six Senses unveils urban wellness retreat in Kyoto inspired by Japanese Zen culture
Six Senses Kyoto opens its doors today, marking the eco-luxury hotel and spa operator’s entry into Japan and a new addition to its urban collection.
UAE’s first Dior Spa debuts in Dubai at Dorchester Collection’s newest hotel, The Lana
The UAE’s first-ever Dior Spa has officially launched at The Lana, Dubai – the Dorchester Collection’s debut property in the Middle East.
Four Seasons’ Sacred River Spa in Bali relaunching in Q3 following extensive renovation
The Sacred River Spa at Four Seasons Resort Bali at Sayan will reopen later this year with an all-new design plus enhanced treatments and experiences inspired by its river valley home.
Circadian Trust invests in wellness to support its NHS partnerships
Operator Circadian Trust has launched a five-year growth drive designed to support health and wellbeing across South Gloucestershire, UK. The initiative will see a £2.4m investment in its five Active Lifestyle Centres.
US named world’s largest wellness economy, reaching US$1.8 trillion valuation
The Global Wellness Institute (GWI) has released new data on the US’ wellness economy, valuing it at US$1.8 trillion.
+ More news   
 
FEATURED SUPPLIERS

Crafting luxury: Beltrami Linen's bespoke spa solutions
Beltrami Linen’s approach to the world of spa is underpinned by a strong emphasis on bespoke design, where close collaboration with customers and their designers is always of the utmost importance. [more...]

Elevate your spa business: master global standards and thrive in Saudi Arabia's tourism boom
Discover how to prepare your spa or wellness facility for the influx of international guests and meet global standards as tourism in Saudi Arabia surges. [more...]
+ More featured suppliers  
COMPANY PROFILES
Oakworks Inc

Oakworks is a US-based FSC-certified manufacturer of spa, massage, and medical equipment. [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

DIRECTORY
+ More directory  
DIARY

 

28-30 Apr 2024

Spa Life Scotland

Radisson Blu Hotel, Glasgow,
08-08 May 2024

Hospitality Design Conference

Hotel Melià , Milano , Italy
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2024

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS