08-08 May 2024
Hotel Melià ,
Milano ,
Italy
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10-12 May 2024
China Import & Export Fair Complex,
Guangzhou,
China
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13-16 May 2024
Conrad Chia Laguna Sardinia ,
Italy
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14 May 2024
JPMorgan Chase Headquarters,
New York City,
United States
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18-22 May 2024
The Ravenala Attitude Hotel,
Mauritius
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23-24 May 2024
Large Hall of the Chamber of Commerce (Erbprinzenpalais),
Wiesbaden,
Germany
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30-30 May 2024
Four Seasons Hotel George V,
Paris,
France
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30 May - 02 Jun 2024
Rimini Exhibition Center,
Rimini,
Italy
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Does variable pricing work in spas? |
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By Jane Kitchen 16 Mar 2016 |
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Variable pricing is a hot topic in hospitality, but does it work in the spa business? In an exclusive Thought Leader column for Spa Opportunities, Lindsay Madden-Naddeau, director of spa integration and operations for FRHI, considers whether a model that works for the resort industry can translate into spa.
Does variable pricing work in spas? By Lindsay Madden-Naddeau, director, spa integration and operations, FRHI
At the latest Professional Spa and Wellness in Dubai we had a fantastic interactive panel that touched the surface of variable pricing. It was very thought-provoking, as each panellist came from a different business structure that was unique. So I left with the question…does variable pricing work? Can we compare the luxury of a spa treatment to the art of booking a hotel room or seat with an airline?
After much thought, I felt that we needed to compare necessity versus luxury, and by luxury I mean we don’t need this service, we want this service. Airlines and hotel companies utilise the strategy of demand pricing, where prices change from one minute to the next, but these requirements are based on schedule and convenience, whereas when booking a spa treatment or a “treat,” time is more flexible.
If we look at the resort model, where we have seasonal peaks of steady business, I agree we should look at increasing the prices during this time to maximise on revenues in peak season. In the off -season, when business demand on property drops along with hotel rates, I can understand having to adjust our pricing to be in line with our current guest mix. Having seasonal prices is less likely to upset the guest compared to coming in on a Monday and having a treatment at one price and then again a couple days later getting charged a higher rate.
I asked one of our spas in California who practices weekday versus weekend prices and wanted to understand if guests were ever upset that they had to pay different prices. The answer was no, and they felt this was based on the way they explained it to the guest. Their normal asking price was the weekend rate; however, during the week they provided a lower selling rate, which was perceived as a discount.
It definitely made me stop and consider the different spa models and what works in particular environments. If you are utilising your discounts properly in off-peak periods and practicing yield management in peak times with a RAM strategy, this can also be interpreted as variable pricing. Food for thought!
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News |
1 to 12 of 8708 news stories |
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03 May 2024
The historic Breakers Hotel in Long Beach, California, is set to reopen in mid-2024 as a Fairmont Hotels & Resorts property after a significant restoration and redevelopment project. The project, initially unveiled in 2022 by ... More
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03 May 2024
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01 May 2024
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27 Apr 2024
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25 Apr 2024
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24 Apr 2024
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24 Apr 2024
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24 Apr 2024
Spa and wellness veteran Shannon Malave has been named spa director at iconic US spa destination Mohonk Mountain House. Based in New York’s verdant Hudson Valley and founded in 1869, Mohonk is a historic Victorian ... More
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23 Apr 2024
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. Situated in the historic Higashiyama district, the 81-key hotel is ... More
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23 Apr 2024
The UAE’s first-ever Dior Spa has officially launched at The Lana, Dubai – the Dorchester Collection’s debut property in the Middle East. Bathed in natural daylight on the hotel’s 29th floor, Dior Spa The Lana ... More
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22 Apr 2024
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. Nestled amid rich tropical ... More
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18 Apr 2024
The Global Wellness Institute (GWI) has released new data on the US’ wellness economy, valuing it at US$1.8 trillion. According to the organisation's recent report – called The Global Wellness Economy: United States – the ... More
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Devin Consulting |
Devin Consulting, an international pool & spa engineering consultancy, founded by Tom Devin in 2000.
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