I read an interesting article this week about spa survival and thought I would weigh in, as well as see what you all are doing to recession proof your spa revenues. The article can be found at: http://www.hotel-online.com/News/PR2009_2nd/Jun09_SpaDecline.html
Dr. Judy Singer is the writer of the article, and it also has great tips from Jeremy McCarthy at Starwood hotels and Resorts, Anne McCall Wilson from Fairmont Raffles Hotels International, Liz Ratcliff at the KOR Hotel group.
Here are my thoughts. After reading the article, that has some great tips, nothing was mentioned about creating a strong revenue management strategy around treatments, RevPATT if you will. (Revenue per available treatment time) Having a rate card is so 2008! Why would you charge the same rate for peak times as times when the place is a ghost town?? Supply and demand baby! I realize we do this to a certain extent by offering specials during certain times, AND our clients do not think this is a regular practice on which they can count on. Think about your repeats! Clients will change their schedules if they know every Tuesday at 2:00 they can get a mani/pedi, facial, deep tissue, mocha latte…for a fraction of the cost of peak times. And it will be the best known secret in town. The airlines started it, hotels do it, and now it’s time for spas to get on board with it. Renie weighed in on the conversation in an article she wrote. Check out her thoughts at: http://www.hotelworldnetwork.com/renie-cavallari/spasmdashtheyre-more-business-you-think.
So what are your thoughts? I’d love to know if you are doing anything like this or considering it. In a recession like this we all need to think better, smarter, faster. And it is times like these that change the way we do business forever! Please take a moment and write your thoughts, I’ll make sure you are heard.
Visit our website for more on revenue generation for spas or give us a call at 602-392-0700.
