Trends and Tradeoffs
Pricing with Purpose
ISPA’s May Town Hall—“Spa Pricing and Promotions: Trends and Tradeoffs”—explored how spa leaders can use dynamic pricing, value-add promotions and smarter data to protect margins without eroding guest trust. Sponsored by Eminence Organic Skin Care, the member education event brought together moderator Kenneth Ryan with Shane Bird of Skana Spa at Turning Stone Resort Casino, Jennifer Holzworth of Montage International, Linda Townsend of Release Well-Being Center and Gary Virden of The Ritz-Carlton, Amelia Island. The conversation was practical and specific: Pricing is no longer a once-a-year menu exercise. It is a leadership tool.
Dynamic Pricing Moves From Idea to Action
Most panelists described some form of variable pricing, often with a weekday rate and a higher Friday-through-Sunday rate. At Montage International, Holzworth said about 60 percent of locations use variable pricing, while one property is piloting full dynamic pricing based on capacity.
Virden shared one of the clearest examples: His spa layers dynamic pricing on top of weekday and weekend rates. “As our books reach 50 percent capacity, we start going up $10 at a time,” he said. The result can add “another $50 or so onto the price at the end.”
The impact has been significant. Virden said the spa is doing “about $60,000 a month on average, just in dynamic pricing,” with “no extra labor, no extra product, no extra anything.” For smaller spas, he noted, even “$3,000 or $4,000 more a month” can represent meaningful margin.
The Communication Challenge
Panelists agreed that guest communication matters, but internal team confidence may matter even more. Virden recommended menus with “starting at” pricing and strong front desk training so team members can explain options clearly: “If you want the base price, then let me look for Monday, Tuesday or Wednesday.”
Townsend said her team reframed the conversation by presenting weekday pricing as the base, with Monday-through-Thursday as the discount. That language “seems to resonate with the community and take the sting out of it a little bit.”
Holzworth added that spa teams are often more nervous than guests: “It seems like our teams are more apprehensive about our pricing than our guests are.”
Pricing Questions Every Spa Leader Should Ask
- Are your busiest days and times priced like your highest-demand inventory?
- Are you tracking margin by service, not just top-line revenue?
- Could a “starting at” menu give you more flexibility?
- Are your front desk and reservations teams trained to explain price differences with confidence?
Discount Less, Add Value More
When the conversation turned to promotions, the panelists largely favored value-add strategies over discounting. Holzworth said Montage is “more in the value-add segment than the discounting segment,” using offers such as a 90-minute service with a retail credit during need periods.
Townsend described a summer rebooking incentive: Guests who rebook at checkout for a future appointment receive 10 percent off. Ryan noted this protects the brand because it is offered to a closed group, not advertised broadly.
Bird warned that discounting can be difficult to unwind. Looking back to recession-era 2008 and 2009, he said, “We did things then that we never thought we ever would have done,” and “that was a hard slope to get back out of.” His preference now is added value, because “it's kind of a win-win.”
Virden uses “preferred pricing” for locals during soft periods, offering a set price on high-margin services for a limited time. The key is specificity: Choose the services, choose the audience and set a deadline.
Protect the Provider Experience
The panel also addressed compensation. Townsend, Holzworth and Bird described fixed commission approaches, meaning providers are not penalized when a service is discounted but do not automatically receive the upside of dynamic pricing. That clarity protects morale while allowing leaders to make strategic pricing decisions. Holzworth noted providers can still influence income through enhancements, add-ons and service charge.
Pro Tips for Filling Gaps
- Build shorter services in the system that are not guest-facing online, then empower reception teams to fill small gaps.
- Use wait-list functionality aggressively when cancellations occur.
- Consider 50-, 80- and 100-minute service structures to keep schedules cleaner.
- Partner with resource partner vendors around trainings, seasonal treatments, events and product-supported enhancements.
The Leadership Takeaway
Pricing strategy is not about charging more for the sake of charging more. It is about understanding demand, protecting margins, communicating value and making choices that support the long-term health of the business.
Ryan captured the larger shift when he reminded attendees, “We're not just in the spa business, we're in the business of spa.” For today's spa leaders, that means using the data, tools and courage now available to make pricing as intentional as the guest experience itself.
4 Final Tips from the Panel
- Create what cannot be comparison-shopped. Townsend recommended unusual offerings that are “not a commodity,” giving spas more freedom to price according to value.
- Push the envelope when demand is strong. Bird said, “If everybody’s busy, everybody should be pushing the pricing envelope.”
- Start small with dynamic pricing. Virden encouraged leaders: “Don't be afraid to try dynamic pricing. It's a little uncomfortable, and that's okay.”
- Price for your guest, not yourself. Holzworth advised leaders to “base your prices off of your guest demographic, not your own wallet.”
