A lot of hotel owners are including a luxury spa in their establishments, whether they are upmarket country inns, resorts, conference hotels, or city hotels. So many resorts in Ras Al Khaimah with private pools have spas. Massage spa Ras Al Khaimah is so popular because RAK spa is something that all tourists want to try during their vacations. The spa in Ras Al Khaimah is so high quality.
Incorporating a spa into their hotel will:
- Obtain a competitive edge.
- Improve the visitor experience.
- Increase revenue, ADR, and profitability.
- Create new sources of income.
- Increase the property’s worth.
Unfortunately, we see that the spa is frequently underused or even empty. Because of this, spas at hotels frequently serve as an additional expense rather than an extra source of income.
More strategic management is required for the spa product!
Similar to hotel rooms, hotel spas go through periods of high and low demand. When there is a great demand for services, it happens frequently that customers must pass up a more lucrative treatment because the treatment room is reserved for a less lucrative service or a series of brief treatments.
There is a significant opportunity for hoteliers to generate additional revenue and profit by applying revenue management techniques to their spa offering, just as they do to maximize the revenues of their hotel rooms, given that demand fluctuates and busy and high demand periods can be easily identified. Keep in mind that the spa serves more purposes than just enhancing the hotel’s value and guests’ experiences. In order to create an additional revenue stream, the product is essential.
Even though hoteliers employ tactical pricing strategies like spa bundles, discounts, two-for-one treatments, gifts, etc. to try and sell treatment rooms during times of low demand, very few have created a plan that enables combining these strategies in revenue management policy.
First come, first served
Most spas operate on a “first come, first served” basis when selling their services. Offering tempting treatment specials at times of low demand will aid revenue management to increase revenue and profit (or yield) while using optimization techniques during times of high demand.
We have observed a very observant approach and openness towards these principles during several spa revenue management courses we have taught. But we also observed that hotel and spa managers struggled with where to begin.
We’ve agreed with spa experts in brainstorming sessions on revenue management potential that the following factors are essential for adopting revenue management successfully:
- Analysis of contributions: Where do you get your money from? Which services generate more revenue for your spa? What percentage of your entire spa revenue does treatment make up? Do you have justification for continuing to offer services like a 30-minute massage?
- Management of productivity: When are profits at their highest? Which treatment sells the least? Which day of the week is busier?
- Further sales follow-up: Can you persuade your client to spend extra on merchandise, presents, and accessories in addition to treatments? Do you have a system in place to track extras by client type? Is your group ready to make a sale?
- Cost management: How may costs be better managed? How can the period between two treatments be shortened? How may the treatment be promoted more profitably?
You may manage these four factors with the use of revenue management, which will enable you to boost the spa’s revenue.
