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21 Oct 2021

Your spa’s (financial) health matters too!

Supplier: ResortSuite

More ResortSuite details
Spas are so focused on the health of their guests and staff that they often neglect their own financial health.

“Spas leave money on the (treatment) table by not taking advantage of periods of fluctuating demand,” says Frank Pitsikalis, founder and CEO of ResortSuite, a guest-centric hospitality management solutions company.

“This can be attributed to spas having limited resources to undertake the required analysis or fear of guest reactions to fluctuating prices, a practice called dynamic pricing."

Dynamic pricing is just one method of revenue management, dynamic availability is another.

Dynamic availability is the scheduling of higher-margin treatments during periods of peak demand and scheduling lower margin treatments to off-peak periods.

“With dynamic availability, a spa can maximise profitability during peak demand times, fill otherwise empty time slots in off-peak times with low profitability treatments, all without changing prices,” Pitsikalis added.

Implementing revenue management strategies may seem arduous for understaffed spas, but software can streamline the process.

ResortSuite’s SPA module contains a yield management tool that allows directors to analyse the profitability of treatments and create rules that are triggered automatically by the software adjusting treatment availability based on demand.

Reports are then automatically generated, allowing directors to analyse results and adjust accordingly.

“The airline industry has been using revenue management since the 1970s," Pitsikalis said.

“Not only has it allowed them to increase profits, but they now serve a much wider demographic than pre-revenue management.

“The time has come for the spa industry to realise its financial potential.”

Request a demonstration at ResortSuite’s official website.

Supplier: ResortSuite
Toronto Ontario Canada
Integrated hospitality software for spas, clubs, resorts and hotels.

Click here to visit ResortSuite's leisure-kit listing

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