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UNITING THE WORLD OF FITNESS
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features

Revenue management

Spas have been getting even more savvy about yield management since the pandemic began. Spa Business asks how software suppliers are supporting them

Published in Spa Business 2021 issue 3
Data-driven strategies play a key role in a spa’s financial and forecasting success / photo: roman samborskyi - Shutterstock
Data-driven strategies play a key role in a spa’s financial and forecasting success / photo: roman samborskyi - Shutterstock
Frank Pitsikalis
ResortSuite
photo: ResortSuite

Most software incorporates variable pricing (time of day and day of week), but ResortSuite also supports dynamic pricing and dynamic availability.

Dynamic availability is our key differentiator, as it’s a more effective and powerful revenue management tool.

Menu and prices don’t change, but the mix of when services are available changes, ensuring higher profitability during peak times and better use of non-peak times.

ResortSuite revenue management takes many decisions out of the hands of staff and we find spas that focus on dynamic availability, typically achieve a 20-30 per cent increase in profit during their high demand days/times.

As a side effect, more lower-margin services are pushed into non-peak dates/times, filling time slots that would typically go unsold. This creates an additional 10-15 per cent increase in profit during off-peak times.

Revenue management is also used to ensure that the mix of treatments on offer positively impacts retail sales. For example, by booking a high-value facial versus a wax service during peak times, the spa not only makes more profit on the facial, but also generates on average 45 per cent of the treatment price in additional product revenue relative to other types of services.

By booking a high-value facial versus a wax during peak times, the spa not only makes more profit on the facial, but also generates 45 per cent of the treatment price in additional product revenue
Dheeraj Koneru
Zenoti
photo: zenoti

Operators using our revenue management capabilities see a 30 per cent uptick on the average ticket size and an increase of 23 per cent in new customer acquisition.

That’s because the system’s dashboards present sales, projections, and trends at all business levels, meaning owners have access to data and a bird’s eye view of where they’re at, where the business is taking off and what can be done to fully leverage and optimise this success.

Zenoti offers several tools to help businesses drive revenue growth, including automated marketing programs that target customers based on their behaviour patterns, upsell add-on services for a visit and remind customers about their next visit.

EzPulse and ezAds are two unique functions the platform supports – with the EzPulse mobile app, business owners and employees gain revenue visibility and insight by tracking key metrics against goals and collaborating across teams with messaging capabilities built into the app. They can compare current performance to past performance, congratulate employees who are doing a great job and support those who are struggling.

ezAds automatically manages digital ad placement across sites such as Google, Facebook and Instagram, helping the business acquire new customers. Spas only have to set a budget and ezAds takes care of the rest from allocating that budget across channels to figuring out keywords.

Operators using our revenue management capabilities see an increase of 23% in new customer acquisition
photo: zenoti - ezpulse
Ryan Johnson
Book4Time
photo: book4time

Spas can manage revenue using a number of Book4Time tools. This includes day-of-week and time-of-day dynamic pricing, as well as service and guest analysis and restriction capabilities to pinpoint busy and slow periods and maximise high-yielding treatments.

Coupons and Automatic Discounts are core features that other software providers may not offer, to drive business or maximise revenues.

Book4Time offers multiple types of coupons that the operator can issue, including incentive coupons, and ‘gift with purchase’ coupons.

For operators that offer memberships and other incentive programmes, spas can use the Automatic Discounting of Services/Retail function which automates the entire process, ensuring guests get the discounts they’re entitled to, without staff having to verify or manually add them.

The software also has a referrals program to allow spas to issue credits to guests who refer new customers.

The software also has a referrals program to allow spas to issue credits to guests who refer new customers
Darren Pick
iSalon Software
photo: isalon

Ninety per cent of spas have had capacity reduced by 50 per cent since the start of the pandemic, so have had to increase revenue in other ways, using everything from marketing filters to monitoring team member performance. They’ve also needed to reduce no-shows.

Our SMS booking reminder service has seen spa no-show rates go from 14.1 per cent down to 5.6 per cent. This allows spa operators to forecast more efficiently and bring in more revenue with reduced last-minute gaps in their diary.

Being aware of revenue, yield management and forecasting is paramount to success and iSalon offers over 130 detailed reports.

The system also has multiple pop-up notifications – one of the most popular prompts staff to upsell things such as retail products when presenting guests with the bill, for example. Another encourages them to rebook clients and if charges for the service are above a specific amount, staff can send a Pay by Link to take a deposit.

Our SMS booking reminder service has seen spa no-show rates go from 14.1% down to 5.6%
Patrick Shanahan
DaySmart Software
photo: daysmart

With DaySmart’s Orchid Spa Software, spas have access to the data they need to manage revenue and make data-driven decisions.

The system’s real-time reports are served up in a customisable, actionable way so spa owners don’t have to go digging to find information: sales statistics are conveniently accessible in graphs that can be filtered by dates to quickly evaluate progress, for example.

Tracking client retention, referrals and sales benchmarks enables businesses to strategise and set goals for revenue growth.

One key function is the connector for QuickBooks, which automatically pushes all tickets to QuickBooks Online, in real-time, for easy accounting. This integration allows spas to report revenue without complex processes.

Real-time reports are served up in a customisable, actionable way so spa owners don’t have to go digging to find information
photo: daysmart’s orchid software
Graham Talley
Helmbot
photo: helmbot

It’s easy in business to take 10 steps in a direction, only to find out you were going the wrong way. Helmbot provides revenue data that’s easy to understand and access to help spa managers establish where to productively spend their time.

Advanced reporting enables them to quickly answer even the most complicated questions to boost revenue. For example, which activities brought in the most revenue before the pandemic and where is it coming from now? What times of day produce the most revenue, for what types of services? Which regulars haven’t returned recently? Who spent over US$100 in the last year, but has never been a member?

Spas can look into which discounts have affected their average price paid per appointment, they can track the successes (and failures) of marketing campaigns and find out which employees are selling the most products and memberships.

Spas can track the successes (and failures) of marketing campaigns and find out which employees are selling the most products and memberships
Tracey Mai
Milano Software
photo: milano software

Our spas have seen a major increase in revenue after implementing strategic price changes using Klicbook’s yield management feature.

The software calculates optimal pricing by utilising our service performance report, price history and sales data to forecast demand and consumer buying behaviour, as well as looking at seasonal and other factors affecting sales.

The yield management feature allows spas to set up automatic price updates based on capacity and demand.

The price can be adjusted automatically based on predefined values, regardless of day, month, or year. For example, the price could be lowered if there is more than 60 per cent capacity to drive custom. Klickbook makes it easier to manage spas by enabling businesses to measure room utilisation, client reservation rates, responses to promotions and other factors that indicate success.

The price can be adjusted automatically based on predefined values. For example, the price could be lowered if there is more than 60 per cent capacity, to drive custom
photo: milano software
Oliver Cahill
Premier Software Solutions
photo: premier software solutions

When used on its own, Core by Premier has the tools needed to help maximise profitability, manage day-to-day operations and highlight areas of growth. However, our clients also benefit from trusted third party integrations to boost sales.

Core is the only spa management software to partner with RevSpa and Smartbox and one of a limited few to partner with spa booking website Spabreaks.com.

Some Premier clients using Core’s integration with online booking platform, RevSpa, have seen a 68.8 per cent conversion of people who visited their website. In addition, 45 per cent of bookings were secured outside working hours. The use of RevSpa also results in large numbers of bookers opting for add-ons.

Smartbox’s gift experience sites have a traffic share of 65 per cent.

This means Core clients using the integration can not only be more efficient, but also confident they’ll reach more buyers.

These partnerships put wellness operators’ brands in front of a larger audience, while also saving the time that’s usually associated with processing vouchers or taking bookings over the phone.

Everything becomes more automated for a seamless customer journey.

Some clients have seen a 68.8% conversion of people who visited their website and 45% of bookings secured outside working hours
photo: premier software - corereports
Penka Sevova
Springer-Miller Systems
photo:springer-miller systems

In a quick study, we found that operators leveraging SpaSoft’s yield management tools have increased the number of appointments in non-peak times by 18-23 per cent and increased the overall revenue during peak times by 15-18 per cent by adjusting availability and pricing.

They’re able to do this because we offer a range of features to help spas respond to forecast demand.

Multiple reports help spas analyse guest segmentation, peak times and future demand levels to better determine yield. The yield management features can also be used to define business rules pertaining to service availability to keep resource schedules free for booking premium services during high demand periods.

With SpaSoft Online Booking, spa operators can also execute their yield management activities directly into their website, making it easy to accommodate demand.

Operators have increased the number of appointments in non-peak times by 18-23% and increased the overall revenue during peak times by 15-18%
Audrey MacRae
Maestro
photo: maestro

By minimising the time required to set up revenue strategies for multi channels, Maestro allows staff to focus on service delivery.

Using the setup options available in Maestro, pricing for services and treatments can be changed by time of day, day of week or by the season.

Guests can also be ‘assigned’ different market segments which can also offer varying prices using the same criteria. The integrated setup ensures the pricing change occurs automatically without any intervention being needed by the spa operator.

Using the Analytics BI tool to distinguish booking trends and patterns enables dynamic revenue maximisation, so the operator can focus on looking after guests while ensuring the rates offered during peak- and off-peak times reflect booking volumes and assist with suggested ‘sell times’ to achieve higher occupancy levels.

Maestro offers selling strategies through an integrated booking engine – these are configured directly in the software for both direct and online bookings, ensuring consistent pricing, regardless of which booking channel is used.

Using the Analytics BI tool to distinguish booking trends and patterns enables dynamic revenue maximisation, so the operator can focus on looking after guests
https://www.leisureopportunities.co.uk/images/2021/830802_896622.jpg
How software suppliers have been supporting spas to get savvy with yield management since the pandemic began
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features

Revenue management

Spas have been getting even more savvy about yield management since the pandemic began. Spa Business asks how software suppliers are supporting them

Published in Spa Business 2021 issue 3
Data-driven strategies play a key role in a spa’s financial and forecasting success / photo: roman samborskyi - Shutterstock
Data-driven strategies play a key role in a spa’s financial and forecasting success / photo: roman samborskyi - Shutterstock
Frank Pitsikalis
ResortSuite
photo: ResortSuite

Most software incorporates variable pricing (time of day and day of week), but ResortSuite also supports dynamic pricing and dynamic availability.

Dynamic availability is our key differentiator, as it’s a more effective and powerful revenue management tool.

Menu and prices don’t change, but the mix of when services are available changes, ensuring higher profitability during peak times and better use of non-peak times.

ResortSuite revenue management takes many decisions out of the hands of staff and we find spas that focus on dynamic availability, typically achieve a 20-30 per cent increase in profit during their high demand days/times.

As a side effect, more lower-margin services are pushed into non-peak dates/times, filling time slots that would typically go unsold. This creates an additional 10-15 per cent increase in profit during off-peak times.

Revenue management is also used to ensure that the mix of treatments on offer positively impacts retail sales. For example, by booking a high-value facial versus a wax service during peak times, the spa not only makes more profit on the facial, but also generates on average 45 per cent of the treatment price in additional product revenue relative to other types of services.

By booking a high-value facial versus a wax during peak times, the spa not only makes more profit on the facial, but also generates 45 per cent of the treatment price in additional product revenue
Dheeraj Koneru
Zenoti
photo: zenoti

Operators using our revenue management capabilities see a 30 per cent uptick on the average ticket size and an increase of 23 per cent in new customer acquisition.

That’s because the system’s dashboards present sales, projections, and trends at all business levels, meaning owners have access to data and a bird’s eye view of where they’re at, where the business is taking off and what can be done to fully leverage and optimise this success.

Zenoti offers several tools to help businesses drive revenue growth, including automated marketing programs that target customers based on their behaviour patterns, upsell add-on services for a visit and remind customers about their next visit.

EzPulse and ezAds are two unique functions the platform supports – with the EzPulse mobile app, business owners and employees gain revenue visibility and insight by tracking key metrics against goals and collaborating across teams with messaging capabilities built into the app. They can compare current performance to past performance, congratulate employees who are doing a great job and support those who are struggling.

ezAds automatically manages digital ad placement across sites such as Google, Facebook and Instagram, helping the business acquire new customers. Spas only have to set a budget and ezAds takes care of the rest from allocating that budget across channels to figuring out keywords.

Operators using our revenue management capabilities see an increase of 23% in new customer acquisition
photo: zenoti - ezpulse
Ryan Johnson
Book4Time
photo: book4time

Spas can manage revenue using a number of Book4Time tools. This includes day-of-week and time-of-day dynamic pricing, as well as service and guest analysis and restriction capabilities to pinpoint busy and slow periods and maximise high-yielding treatments.

Coupons and Automatic Discounts are core features that other software providers may not offer, to drive business or maximise revenues.

Book4Time offers multiple types of coupons that the operator can issue, including incentive coupons, and ‘gift with purchase’ coupons.

For operators that offer memberships and other incentive programmes, spas can use the Automatic Discounting of Services/Retail function which automates the entire process, ensuring guests get the discounts they’re entitled to, without staff having to verify or manually add them.

The software also has a referrals program to allow spas to issue credits to guests who refer new customers.

The software also has a referrals program to allow spas to issue credits to guests who refer new customers
Darren Pick
iSalon Software
photo: isalon

Ninety per cent of spas have had capacity reduced by 50 per cent since the start of the pandemic, so have had to increase revenue in other ways, using everything from marketing filters to monitoring team member performance. They’ve also needed to reduce no-shows.

Our SMS booking reminder service has seen spa no-show rates go from 14.1 per cent down to 5.6 per cent. This allows spa operators to forecast more efficiently and bring in more revenue with reduced last-minute gaps in their diary.

Being aware of revenue, yield management and forecasting is paramount to success and iSalon offers over 130 detailed reports.

The system also has multiple pop-up notifications – one of the most popular prompts staff to upsell things such as retail products when presenting guests with the bill, for example. Another encourages them to rebook clients and if charges for the service are above a specific amount, staff can send a Pay by Link to take a deposit.

Our SMS booking reminder service has seen spa no-show rates go from 14.1% down to 5.6%
Patrick Shanahan
DaySmart Software
photo: daysmart

With DaySmart’s Orchid Spa Software, spas have access to the data they need to manage revenue and make data-driven decisions.

The system’s real-time reports are served up in a customisable, actionable way so spa owners don’t have to go digging to find information: sales statistics are conveniently accessible in graphs that can be filtered by dates to quickly evaluate progress, for example.

Tracking client retention, referrals and sales benchmarks enables businesses to strategise and set goals for revenue growth.

One key function is the connector for QuickBooks, which automatically pushes all tickets to QuickBooks Online, in real-time, for easy accounting. This integration allows spas to report revenue without complex processes.

Real-time reports are served up in a customisable, actionable way so spa owners don’t have to go digging to find information
photo: daysmart’s orchid software
Graham Talley
Helmbot
photo: helmbot

It’s easy in business to take 10 steps in a direction, only to find out you were going the wrong way. Helmbot provides revenue data that’s easy to understand and access to help spa managers establish where to productively spend their time.

Advanced reporting enables them to quickly answer even the most complicated questions to boost revenue. For example, which activities brought in the most revenue before the pandemic and where is it coming from now? What times of day produce the most revenue, for what types of services? Which regulars haven’t returned recently? Who spent over US$100 in the last year, but has never been a member?

Spas can look into which discounts have affected their average price paid per appointment, they can track the successes (and failures) of marketing campaigns and find out which employees are selling the most products and memberships.

Spas can track the successes (and failures) of marketing campaigns and find out which employees are selling the most products and memberships
Tracey Mai
Milano Software
photo: milano software

Our spas have seen a major increase in revenue after implementing strategic price changes using Klicbook’s yield management feature.

The software calculates optimal pricing by utilising our service performance report, price history and sales data to forecast demand and consumer buying behaviour, as well as looking at seasonal and other factors affecting sales.

The yield management feature allows spas to set up automatic price updates based on capacity and demand.

The price can be adjusted automatically based on predefined values, regardless of day, month, or year. For example, the price could be lowered if there is more than 60 per cent capacity to drive custom. Klickbook makes it easier to manage spas by enabling businesses to measure room utilisation, client reservation rates, responses to promotions and other factors that indicate success.

The price can be adjusted automatically based on predefined values. For example, the price could be lowered if there is more than 60 per cent capacity, to drive custom
photo: milano software
Oliver Cahill
Premier Software Solutions
photo: premier software solutions

When used on its own, Core by Premier has the tools needed to help maximise profitability, manage day-to-day operations and highlight areas of growth. However, our clients also benefit from trusted third party integrations to boost sales.

Core is the only spa management software to partner with RevSpa and Smartbox and one of a limited few to partner with spa booking website Spabreaks.com.

Some Premier clients using Core’s integration with online booking platform, RevSpa, have seen a 68.8 per cent conversion of people who visited their website. In addition, 45 per cent of bookings were secured outside working hours. The use of RevSpa also results in large numbers of bookers opting for add-ons.

Smartbox’s gift experience sites have a traffic share of 65 per cent.

This means Core clients using the integration can not only be more efficient, but also confident they’ll reach more buyers.

These partnerships put wellness operators’ brands in front of a larger audience, while also saving the time that’s usually associated with processing vouchers or taking bookings over the phone.

Everything becomes more automated for a seamless customer journey.

Some clients have seen a 68.8% conversion of people who visited their website and 45% of bookings secured outside working hours
photo: premier software - corereports
Penka Sevova
Springer-Miller Systems
photo:springer-miller systems

In a quick study, we found that operators leveraging SpaSoft’s yield management tools have increased the number of appointments in non-peak times by 18-23 per cent and increased the overall revenue during peak times by 15-18 per cent by adjusting availability and pricing.

They’re able to do this because we offer a range of features to help spas respond to forecast demand.

Multiple reports help spas analyse guest segmentation, peak times and future demand levels to better determine yield. The yield management features can also be used to define business rules pertaining to service availability to keep resource schedules free for booking premium services during high demand periods.

With SpaSoft Online Booking, spa operators can also execute their yield management activities directly into their website, making it easy to accommodate demand.

Operators have increased the number of appointments in non-peak times by 18-23% and increased the overall revenue during peak times by 15-18%
Audrey MacRae
Maestro
photo: maestro

By minimising the time required to set up revenue strategies for multi channels, Maestro allows staff to focus on service delivery.

Using the setup options available in Maestro, pricing for services and treatments can be changed by time of day, day of week or by the season.

Guests can also be ‘assigned’ different market segments which can also offer varying prices using the same criteria. The integrated setup ensures the pricing change occurs automatically without any intervention being needed by the spa operator.

Using the Analytics BI tool to distinguish booking trends and patterns enables dynamic revenue maximisation, so the operator can focus on looking after guests while ensuring the rates offered during peak- and off-peak times reflect booking volumes and assist with suggested ‘sell times’ to achieve higher occupancy levels.

Maestro offers selling strategies through an integrated booking engine – these are configured directly in the software for both direct and online bookings, ensuring consistent pricing, regardless of which booking channel is used.

Using the Analytics BI tool to distinguish booking trends and patterns enables dynamic revenue maximisation, so the operator can focus on looking after guests
https://www.leisureopportunities.co.uk/images/2021/830802_896622.jpg
How software suppliers have been supporting spas to get savvy with yield management since the pandemic began
Latest News
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At UK Active’s Active Uprising event yesterday (30 June) in Birmingham, Hattie Jones, the head ...
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Featured supplier news: How wearables-driven gamification will boost your business
It’s a known fact that gamification is an effective method to make everyday activities and work more fun.
Featured supplier news
Featured supplier news: Fitness industry to gather at Sibec Europe-UK in Portugal this September
Questex’s iconic event Sibec Europe-UK – known as Europe’s leading hosted buyer event for the fitness industry – will take place from 27-30 September at the Anantara Vilamoura Algarve Resort, in Portugal.
Featured operator news
Featured operator news: New £42m Moorways Sports Village to open on 21 May
Everyone Active will open Moorways Sports Village to the public on Saturday 21 May with a grand opening weekend – in time for the half term holidays.
Featured operator news
Featured operator news: Everyone Active to launch new exercise classes to reduce gender gap
As part of their work to break down the barriers that deter women and girls from participating in sport and physical activity, Everyone Active has teamed up with EMD UK to launch new exercise classes linked to the This Girl Can campaign.
Video Gallery
Mindbody, Inc
Mindbody, Inc
Total Vibration Solutions / Floors 4 Gyms / TVS Sports Surfaces
Company profiles
Company profile: We Work Well Inc
We Work Well is a global premier hosted buyer event company, connecting high-level executives from ...
Company profiles
Company profile: Perfect Gym Solutions S.A.
Perfect Gym currently provides fitness software solutions to customers in 55+ countries, servicing more than ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Skincare
Sothys: Skincare
Lockers/interior design
Safe Space Lockers Ltd: Lockers/interior design
Spa software
SpaBooker: Spa software
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Management software
Premier Software Solutions: Management software
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Salt therapy products
Himalayan Source: Salt therapy products
On demand
Fitness On Demand: On demand
Wearable technology solutions
MyZone: Wearable technology solutions
Fitness equipment
A Panatta Sport Srl: Fitness equipment
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Runcorn
Halton Borough Council
Property & Tenders
Diary dates
12-13 Sep 2022
Wyndham Lake Buena Vista Disney Springs® Resort, Lake Buena Vista, United States
Diary dates
21-21 Sep 2022
Various, London, United Kingdom
Diary dates
25-28 Oct 2022
Messe Stuttgart, Germany
Diary dates
25-28 Oct 2022
Ibiza, Ibiza, Spain
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
17-18 Mar 2023
Tobacco Dock, London, United Kingdom
Diary dates
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