SNAPSHOT SURVEY
SPA PRICING STRATEGIES
JUNE ’ S ISPA SNAPSHOT SURVEY asked respondents to share details about their spa or company ’ s pricing strategies . The survey responses highlight menu price and product changes , along with various pricing strategies employed by spas .
Regarding increases in spa menu prices in 2023 , half ( 50 percent ) of spas said they did increase prices , while a quarter ( 28 percent ) said they did not increase prices , but plan to later this year . Another quarter ( 23 percent ) said they do not have plans to increase prices .
Has your company increased spa menu prices in 2023 ?
INCREASED PRICES FOR 2023
YES
50 %
NO ( But we plan to later this year .)
NO ( And we do not currently have plans to increase rates .)
23 %
28 %
SIXTY-ONE PERCENT OF SPAS made changes to the products they use or sell in their spa due to price increases , while about a quarter ( 28 percent ) said they had reduced inventory of a product line due to an increase in costs .
Regarding the use of pricing strategies for spa services , nearly twothirds ( 63 percent ) of spas use static pricing , while a quarter ( 25 percent ) use variable pricing and 15 percent use dynamic pricing .
PRICING TERMINOLOGY
l STATIC PRICING : Service prices remain constant , regardless of demand
l VARIABLE PRICING : Service prices are adjusted based on day of the week or time of the day
l DYNAMIC PRICING : Services prices are adjusted based on real-time demand
Which of the following pricing strategies does your spa utilize for spa services ?
PRICING STRATEGIES UTILIZED
DYNAMIC PRICING ( adjust prices based on real-time demand )
15 %
ROUGHLY THREE-QUARTERS ( 77 percent ) of spas reported they were not using yield management , while the remaining quarter ( 23 percent ) reported they were .
Regarding the use of dynamic availability within spa booking software in real-time , 85 percent of respondents reported not utilizing the strategy , while 15 percent continue to do so .
STATIC PRICING ( service prices remain constant , regardless of demand )
VARIABLE PRICING ( adjust service prices based on day of the week or time )
25 %
63 %
INVENTORY TERMINOLOGY
l Yield management : Service inventory is adjusted to sell “ to the right customer , at the right time , at the right price ” to maximize revenue
l Dynamic availability : Availability of certain services is adjusted based on customer demand
54 PULSE n AUGUST / SEPTEMBER 2023