Pitsikalis says there’s no one-size-fits-all approach, and ResortSuite’s tools help provide analysis
Spa revenue management tools at Miraval help optimse profit during high-demand hours
ResortSuite’s yield function allows us to deliver the right treatment to the right guest at the right time Cecil Hopper, director of revenue management, Miraval Resort Arizona
and production to help spas analyse their business so that they know how to dynamically price their offerings. Spas will see increased revenue during periods of high demand and increased bookings during times of low demand.” This has proved successful for SpaSoft client Nemacolin Woodlands Resort in Pennsylvania, US. “SpaSoft’s Revenue Projection Report is our most commonly used tool,” says assistant spa director Miranda Henning. “It allows us to compare what is currently on our books with our budget. If we see we’re falling short throughout the month, we choose our lower volume days to promote the spa and offer lower rates to generate revenue.”
Dynamic availability, on the other hand, aims to increase profits by managing the mix of services on offer. A spa might achieve this by shortening its menu to higher margin services, or not offering longer services during peak times. “There are good reasons why you would change your menu mix based on periods of demand,” explains ResortSuite’s Pitsikalis. “By cutting off longer services or lower-margin services during your peak times, you’ll actually service more guests. This results in more retail opportunities and higher guest satisfaction – and selling more services that have a higher drag on your retail sales can also generate substantially higher revenues overall.”
Spa revenue management has been part of the Miraval business model for five years, as ResortSuite customer Cecil Hopper, director of revenue management at the iconic destination spa in Arizona, explains: “Like most spas, during our peak hours, unconstrained demand far exceeds capacity. As operators, we’re tasked with designing a menu that supports the optimisation of profit during these high-demand hours, and occupancy in off-peak periods. ResortSuite’s yield function, in combination with a granular menu analysis, allows us to deliver the right treatment to the right guest at the right time in an automated fashion.” ©CYBERTREK 2017
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