How can we use dynamic pricing to maximize profits?
By Raúl Díaz
St. Somewhere Spa
Margaritaville Island Reserve Cap Cana
By Cheryl Sott
VP Asset Management
Trilogy Spa Holdings
If capacity is constraining your spa, the best time to adopt a dynamic pricing strategy is now. The right offer, to the right guest, at the right time requires a shift in thinking and knowing your guests. Here are a few tactics to get you started.
1. When the day has only a few times slots available, those should be filled by offering only premium treatments. Set date and/or capacity trigger points. For guests wanting a standard treatment, offer a less busy day and let them choose.
2. For day spas, offer a non-refundable, incentive price for booking your slowest days, many weeks in advance, then switch to tactic 1 once you hit the triggers.
3. Hotel spa guests booking at the last minute in your slowest season may be value oriented, empower your booking and reception teams with the tools and rules to be price flexible. This could include a special ‘hidden’ menu. This tactic can work exceptionally well if your spa has fixed costs to cover, including payroll.
Lastly, get help. Spa Management Software companies, some are adding dynamic pricing tools and often, hotels have entire revenue management departments, so you do not have to reinvent the wheel to get started!