Increase spa and ancillary revenue in 2024
2024 is going to be your best business year yet. We can feel it.
Let’s head into the new year with a focus on increasing revenue across the board at your spa, wellness, or hospitality business. Here are some simple strategies for increasing ancillary and spa revenue.
Diversify revenue streams
Diversifying streams is one of the most effective business strategies. Having only one or two revenue streams puts you in a precarious situation, because if you lose them, you lose everything, as many spas discovered during the COVID-19 shutdowns. Explore opportunities to diversify your income sources by hosting events and launching membership programs and subscription services. Hold wellness retreats and incorporate additional revenue-generating activities, like workshops, classes, or guided meditations. Introduce ancillary revenue activities, add food and drink packages to your cabanas and courts. Partnering with local businesses to offer joint promotions, creating new revenue streams while cross-promoting each other’s services.
Implement yield & revenue management
Implement a dynamic pricing strategy to optimize prices and availability based on demand fluctuations. Use your spa and ancillary revenue management software’s data analytics and revenue management functionality to forecast demand and adjust pricing in real-time, maximizing revenue during peak periods. Offer attractive packages and discounts during off-peak times to attract more cost-conscious guests. Offer add-ons and upsells that add no additional time to treatments and services, like hot stones and CBD creams to massages and paraffin wax hand treatments and eye masks to facials. Incentivize staff to promote these things.
Collect & utilize guest data
Implement a guest loyalty program that collects valuable data on guest preferences and behaviors. Use your software to log guest information that can even be shared across multiple properties to make your customers feel valued and appreciated all over the world.
Utilize this data to personalize marketing efforts, tailor services, and improve overall guest satisfaction with the ultimate in personalized service.
Track turnaway
Spas typically lose about 15% of revenue from turning away. Monitor and analyze the reasons for guest turnaways, whether due to lack of availability or pricing concerns. Use this data to make informed decisions, such as adjusting staffing levels during high-demand periods or offering alternative services to accommodate more guests. Implement waitlist systems to capture potential revenue from guests willing to wait for availability.
Promote your digital gift cards
Promote the sale of gift cards for your spa and hospitality services. Offer special promotions or discounts for gift card purchases during holiday seasons and other relevant occasions. Make it easy for guests to redeem gift cards for a seamless and enjoyable experience and make your gift cards digital so they are easy to purchase and share.
Focus on upsells & add-ons
Train your staff to effectively upsell and cross-sell additional services – train hotel staff to sell spa treatments, cabanas, and activities to enhance the guest experience – and to add upsells to the add ons, like food and drinks packages with cabanas and sports court reservations, and enhancements to core spa services. Create enticing packages that combine core services with complementary add-ons, increasing the overall spending per guest. Mine your ancillary revenue management software’s CRM for guest information, like preferences and previous interactions to personalize upsell suggestions.
Increase your marketing efforts
Invest in targeted digital marketing campaigns, including social media advertising, to expand your online presence. Engage with your audience through storytelling and content marketing, showcasing the unique experiences your spa and hospitality business offers. Utilize data analytics to measure the effectiveness of your marketing efforts and make necessary adjustments for better ROI. Pay close attention to your online reputation and reviews. Respond promptly to all reviews, good and bad.
Increase your retail sales
Curate a selection of high-quality products that align with your spa and hospitality brand, create an enticing area where people can try the products and interact with them, and cross promote retail with your services and treatment. Leverage online platforms to highlight your amazing product selection, host events for VIP clients to try them out, and encourage people to buy them as gifts. Set up an ecommerce site to make it easy for people to purchase. Promote this to your customers.
Train your teams
Invest in comprehensive training programs for your staff, focusing on customer service, upselling techniques, and product knowledge. Provide ongoing training to keep your teams updated on industry trends and best practices. Recognize and reward employees who excel in delivering exceptional service, fostering a motivated and dedicated workforce.
By implementing these strategies, your spa and hospitality business can drive revenue growth in the upcoming year, ensuring a successful and prosperous future.
Spa Executive is published by Book4Time, the leader in guest management, revenue and mobile solutions for the most exclusive spas, hotels, and resorts around the globe. Learn more at book4time.com.