Some creative yield management approaches that go beyond conventional demand-based pricing models. 

Effective yield management isn’t just about dynamic pricing (as much as we do love dynamic pricing). It’s about optimizing revenue in ways that enhance the guest experience. By leveraging innovative strategies, spas, hotels, and resorts can maximize revenue across multiple touchpoints without resorting to discounting, which can damage brand reputation and erode profitability. Here are some creative yield management approaches that go beyond conventional demand-based pricing models. 

1. Exclusive, bespoke spa and wellness packages

Instead of offering standard promotions, tailor spa and wellness packages to specific guest segments with an emphasis on exclusivity and personalization. A luxury resort spa could introduce a Wellness Immersion Retreat featuring a multi-day experience with private spa treatments, customized nutrition consultations, guided mindfulness sessions, and access to a VIP relaxation lounge. Guests could enjoy priority scheduling, in-suite aromatherapy, and exclusive wellness concierge services, ensuring an ultra-personalized stay that justifies premium pricing. 

 2. Gamification to drive early bookings

Gamification can make the booking process more interactive while encouraging early reservations. A spa could implement a Book & Indulge system where guests who book treatments in advance receive a surprise luxury enhancement revealed upon arrival. Rewards could include a complimentary treatment add-on, priority access to thermal experiences, a personalized product gift, or a glass of champagne upon check-in. This creates excitement without undercutting pricing, strengthening guest engagement while boosting spa bookings. 

 3. Time-based pricing for increased spa utilization

Spas can implement time-sensitive pricing strategies to optimize occupancy while adding flexibility for guests. Examples include: 

Premium hourly access – Offer limited-time access to high-value amenities like hydrotherapy circuits, private relaxation suites, or high-end fitness classes, catering to guests who prefer short but immersive wellness experiences. 

Off-peak wellness perks – Instead of discounting treatments, introduce Tranquil Hours, where guests who book during non-peak times receive enhanced benefits like an extended massage, a guided meditation session, or a customized post-treatment wellness plan. 

Day-use spa escapes – Create exclusive daytime spa experiences for business travelers or leisure guests, bundling signature treatments with access to pools, saunas, and relaxation areas without requiring an overnight stay. 

By integrating time-based pricing with thoughtful guest benefits, spas can drive incremental revenue while maintaining their brand’s luxury appeal. 

4. Experiential add-ons that drive ancillary revenue

A well-curated selection of premium experiences can significantly increase per-guest revenue. Spas and wellness retreats can offer:  

• Private sound healing or guided meditation sessions
• Sommelier-curated wellness tea or elixir tastings
• Personalized skincare workshops with luxury product sampling
• Exclusive after-hours spa access for VIP guests 

These high-margin add-ons enhance the guest experience while providing new revenue opportunities beyond standard treatments. 

 5. Last-minute luxury upgrades instead of discounts

Rather than offering last-minute price reductions, spas can upsell premium treatments or packages at an enticing rate. For example, a guest booked for a standard massage could receive an exclusive offer for a Signature Spa Journey at a preferred rate, which includes a body scrub, extended treatment time, and a relaxation suite experience. This fills premium inventory that might otherwise go unused while introducing guests to higher-value offerings. 

 6. Strategic partnerships for exclusive pricing opportunities

Partnering with luxury brands, wellness influencers, or exclusive events can open up creative yield management opportunities. For example: 

Festival & retreat collaborations – Becoming the official wellness partner for a high-profile event allows a spa to offer exclusive packages while attracting new clientele. 

Luxury brand experiences – Offering exclusive spa treatments featuring high-end skincare lines, custom fragrance blending, or personalized beauty consultations in collaboration with prestige brands can increase per-guest spending. 

A smarter approach to yield management 

Creative yield management strategies go beyond adjusting treatment pricing by enhancing guest experience, optimizing spa utilization, and building long-term customer loyalty. By continually innovating and adapting to market trends, spas, hotels, and resorts can achieve sustainable revenue growth while offering memorable wellness experiences that keep guests returning. 

The post 6 creative yield management strategies for spas, hotels & resorts  appeared first on Spa Executive.

RevPAR isn’t enough. Research has found that, on average, 68% of hotel revenue comes from rooms, while 32% comes from food & beverage, spas, activities, parking, and other services. How to maximize these additional revenue streams.

This month’s Spa Executive is about all the things RevPAG we could cram into one issue. 

The hotel industry has long prioritized revenue per available room (RevPAR), with ancillary services often treated as secondary. But guest expectations have changed, and people are increasingly booking hotels and resorts for unique, immersive experiences. From dining to spa to curated activities, workshops and wellness, travelers want more than a place to lay their heads. 

Hilton’s 2025 Trends Report predicted that 2025 would be the “Year of the Travel Maximizer.” Chris Nassetta, Hilton’s President and CEO said, “Our 2025 Trends Report uncovers what has been simmering for years – the intersection of work and play; of relaxation and adventure; of being alone but together. Travelers don’t just want to choose their own adventure – they want to maximize every moment of their time away.” 

Recent research from diverse sources has also found that: 

• 72% of affluent travelers around the world, are more likely to book a hotel if it has specialized wellness options, like salt rooms or ice baths (this rises to 93% among Chinese travelers). (Altiant & Hyatt) 
• 62% of respondents prioritize spa experiences. (Altiant & Hyatt)
• 52% are drawn to nature immersions. (Altiant & Hyatt)
• 54% are interested in therapeutic interventions like acupuncture. (Altiant & Hyatt)
• 49% seek exercise classes. (Altiant & Hyatt)
• 59% of American travelers participated in outdoor adventure activities during trips taken in 2023. (Skift)
• 63% of luxury travelers say they are likely to seek out adventurous activities.  (Skift)
• In the 12 weeks leading up to a trip, people searched for experiences three times more than they did for hotel bookings and eight times more than for flights. (Google) 

Spas, activities, and premium add-ons remain underutilized revenue sources in many hotels and resorts. Meanwhile, rising labor and operational costs are increasing the pressure to find additional revenue streams beyond RevPAR.  

Moving beyond RevPAR a total revenue perspective  

Research by CoStar Group has found that, on average, 68% of hotel revenue comes from rooms, while 32% comes from food & beverage, spas, activities, parking, and other services. While rooms generate steady income, many hotels overlook high-margin opportunities in ancillary services. Instead of focusing solely on occupancy and average daily rate, hotels should be prioritizing total guest spend to maximize profitability. The metric that measures this total spend is RevPAG.  

We know that guests are increasingly willing to pay for curated, exclusive experiences, and sometimes even small changes can turn these often already existing amenities into bigger profit drivers.  

Easy ways to move beyone RevPAR and promote ancillary revenue offerings include taking simple actions like the following: 

1. Auto-prompt spa and activity booking with room reservation. Use hotel booking software to suggest a spa treatment or excursion immediately after guests book their stay. 
2. In-room and lobby QR Codes for instant booking. Place QR codes in guest rooms and in strategic locations throughout the property linking directly to the spa  and activities booking page. 
3. Automated pre-arrival spa reminders. Send spa promotions via email or SMS before check-in. 
4. Smart spa and activity offers based on length of stay. Automatically offer spa perks to guests staying multiple nights. Example: “Staying 3+ nights? Enjoy a complimentary 15-minute foot massage when you book any service.”
5. Effortless pool & gym cross-promotion. Use digital signage at the pool and gym to promote spa recovery services. Example: “Sore muscles? Recover with a massage—stop by the spa or book on your phone.” 

Technology’s role in maximizing non-room revenue 

Hotels can leverage technology to streamline and enhance ancillary revenue opportunities. Smart booking platforms and AI-driven personalization tools can help upsell spa treatments, adventure experiences, and wellness add-ons based on guest preferences and past behavior. Automated pre-arrival emails and in-app notifications can suggest relevant experiences, encouraging guests to book before they even set foot on the property. 

Don’t forget your cabanas & day beds 

Luxury hotels can optimize cabana and day bed rentals by integrating dynamic pricing models that adjust rates based on demand, weather conditions, and peak times. Mobile ordering for food and beverage service in these areas can drive additional revenue, while premium add-ons—such as exclusive cocktail menus, private spa treatments, or personalized concierge service—can increase guest spend. Smart cabana management systems can allow guests to reserve and customize their experience digitally, creating a seamless and enticing offering. 

Leveraging AI & automation for upselling 

Hotels and resorts can use a Generative AI-assisted spa concierge to guide guests through availability inquiries and booking experiences. T=This technology enables around-the-clock end-to-end live booking experiences without additional staff, elevating revenue by making it easy for guests to book whenever they are ready. 

Integrated mobile payment solutions 

Mobile payment solutions make it easier for guests to explore, book, and pay for ancillary services with just a few taps. Whether it’s reserving a premium cabana, adding a guided excursion, or ordering an in-room wellness package, a frictionless digital experience encourages greater participation and higher overall spend.   

Expanding private and VIP offerings 

Personalized VIP experiences — such as private chef dining, bespoke wellness journeys, or guided adventure tours — can become high-value revenue drivers when marketed effectively. Data-driven insights can help tailor exclusive packages that appeal to high-spending guests.  

By fully embracing a tech-driven, guest-centric approach, hotels can move beyond traditional revenue models and create immersive, high-value experiences that drive total guest spend while enhancing satisfaction and loyalty.

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. 

The post Revenue strategies beyond RevPAR: unlocking the hidden profit in hotels and resorts  appeared first on Spa Executive.

I’ve seen the good, the bad and the ugly in pay structures. Use performance based pay in your spa to improve both employee experience and revenue. 

By Sal Capizzi
Digital Content Lead at Spa Executive

Attracting and retaining top talent in the hospitality industry for the new year is the topic on everyone’s mind. Rightfully so. With almost every media outlet talking about ‘The Great Resignation’ and figuring out how to keep your team safe as we exit a pandemic, there is no question that team leaders at every level are trying to navigate the best practices for retaining a strong team.

The number one answer to this issue in almost every poll and questionnaire out there is, simply, money. If we pay people more, they will probably be more willing to work. But, given that spa is generally a low-profit industry, this can be difficult. And for practitioners in the spa and wellness industry there are other related factors to consider.

For example: while we should pay people more if we are able, that doesn’t mean you should pay someone that just graduated from school the same as someone who has been practicing for 10+ years and has taken every continuing education course under the sun. One of the longest standing solutions to this is ‘performance-based pay.’

As a former Spa Director, I have been blessed to see the good, the bad and the ugly in many pay structures. One of the best pay structures I’ve worked with in the past was a tiered commission structure. Most spas use a commission-based pay structure. This is simply taking that common practice to the next level. It works by creating performance-based tiers, starting at Tier 1 and ending at Tier 4 + a bi-weekly bonus upon performing over 30 services in a two week pay period.

This structure is a winning strategy for everyone, as it helps grow revenue while incentivizing team members to contribute to the success of the business. And it helps solve the staffing problem by increasing earning potential while alleviating some of your costs.

Performance-based pay increases employee engagement

When I employed this structure, my practitioners were always highly engaged and willing to go above and beyond to get promoted to the next tier level. I was constantly being asked “What can I do to get to Tier 3 or 4?” And we would come up with an achievable action plan with goals and milestones from there.

Here is an example of how it could work for one of your practitioners:

Say you hired Eric straight out of school, post boards, as a Tier 1 therapist. He has met and maintained thresholds that put him at Tier 2 payout level. But he is now in your office asking how he can get to being a Tier 3 therapist. Maybe this requires him to get certified in Hot Stone Massage so he can start performing that service in addition to keeping his return request rate above 40% for all of his bookings. (Using Book4Time really makes this data super easy to pull up on our ‘Technician report card’ report. I used it myself to measure a ton of metrics during so many performance reviews and one-on-ones.)

Now Eric knows what he has to do to get promoted to a Tier 3 therapist, and you can continue checking in with him, see how classes are going, or even going the extra mile and seeing if he needs any resources to help find a class. (It’s pretty standard at this point that continuing education should be reimbursable by the company for the growth of your team’s skillset.)

A tiered payout structure model like this not only allows you to pay your practitioners that are at, or on their way to, a mastery skill level a respectable wage but also allows you to incentivize newer practitioners to continue building their skillset and their pre-booked client list to get to a higher payout or bonus per service.

There were many weeks in which my top performers could be making DOUBLE what I was making as a Spa Director, which, as a former service provider, sometimes made me feel like I should roll up my sleeves and start practicing again as well. But at the end of the day those practitioners were a true testament that it really pays off when you always bring your A-game and when your dedication to the team and unique skill set is unmatched.

Practitioners spend many years perfecting their craft, learning new things, and providing lots of hands-on work in addition to being your biggest customer service marquee.

As leaders, now more than ever, we have the power to build some of our strongest teams to carry-on into the future.

Hi! Check out this list of the spa & wellness trends we’ll be watching next year. Click here to download the Handbook: Seven wellness trends for 2022

The post Use performance based pay to attract and retain talent appeared first on Spa Executive.

Wellness is in great demand these days. Check out our guide on how to increase hospitality revenue with wellness.

After a difficult couple of years, hospitality businesses are looking for ways to increase revenue and looking to wellness as a magic solution.

In a recent McKinsey survey of more than 7,000 consumers in Brazil, China, Germany, Japan, the United Kingdom, and the United States, consumers in every market reported a substantial increase in the prioritization of wellness over the past two to three years. And most consumers said they will spend more on wellness in the future. In that report, McKinsey estimates the global wellness market at more than $1.5 trillion, with annual growth of five to 10%.

Meanwhile, according to The Global Wellness Institute, the global wellness economy was valued at $4.5 trillion in 2018 and the industry grew by 6.4% annually from 2015–2017, from a $3.7 trillion to a $4.2 trillion market.

Skift also recently reported that revenue from wellness vacations is expected to reach an estimated $919 billion worldwide by 2022. Moreover, an American Express survey conducted in September, 2021, found that 76% of global travelers intend to spend more on travel to improve wellbeing and 68% will likely plan their next vacation around improving mental wellbeing in particular. Additionally, 60% of respondents are currently dreaming of planning a wellness-focused trip, with 41% expressing interest in booking a hotel with wellness activities and 38% interested in visiting a wellness resort.

It’s no wonder wellness is looking so good. 

Wellness is not a quick fix

In an interview with Spa Executive about her book, The Wellness Asset, How wellness can transform and futureproof your hotel, global wellness expert, Sonal Uberoi said, “Wellness is the new luxury that today’s consumers are looking to our industry to provide as they pursue a state of wellbeing that allows for a fuller human experience than traditional hospitality typically provides.

“It has become standard to find a spa and gym in five-star luxury hotels, but the market now demands increasingly more sophisticated, integrated wellness experiences.”

(As an aside, it’s worth noting that, in the book, Uberoi points out that, while the terms wellness and wellbeing are often used interchangeably, they mean different thing. “Wellness,” she writes, is the tool, and “wellbeing” the goal. Your hotel, therefore, is offering wellness to guests with an aim to enhancing their wellbeing.)

Uberoi also writes, “Wellness is no longer confined to a specific activity or a physical space; real wellness is more than a spa, a gym or a studio. The definition of wellness is broad and involves anything that enhances overall wellbeing. Therefore, a lot of activities – such as horse riding, hiking in the mountains, cooking classes and coaching sessions, or wine tasting – that many hoteliers are already offering their guests are essentially wellness-related activities. Once you accept that you can’t keep away from wellness – whether you have an urban hotel or a resort, whether you are budget, mid-scale or luxury – you start seeing the immense revenue-generating opportunity in front of you that wellness adds to your hotel offering.”

Uberoi and other experts repeatedly caution, however, that wellness isn’t a quick fix or a magic bullet. It takes work and commitment. Developing an understanding of wellness trends and industry best practises is key to including wellness in a way that improves your overall guest experience in a way that adds value and creates additional revenue streams. 

To read the rest of this article, click here to download the PDF

The post GUIDE: increase hospitality revenue with wellness appeared first on Spa Executive.

We talked with Marriott’s Senior Corporate Director of Spa Operations, Suzanne Holbrook, about how to make the most of the revenue generating power of spa and wellness.

If there is someone who can talk about hospitality, spa, and wellness revenue, it’s Suzanne Holbrook. Marriott’s Senior Corporate Director of Spa Operations, Ms. Holbrook oversees 160 spas at hotels and resorts that include The Ritz-Carlton, St Regis, W hotels, JW Marriott, Luxury Collection, Autograph, Westin, Marriott, Renaissance, Gaylord & Sheraton. She is responsible for driving spa performance through a focus on business development, revenue generation, guest experience, design, branding, and education.

With 40 years in the industry, Ms. Holbrook is recognized for an almost magical ability to produce outstanding financial results. Previously, as an executive Spa Director for The Ritz-Carlton Spa, Orlando, Ms. Holbrook increased revenues by $USD2million in two years.

Recently, we spoke with Ms. Holbrook about why yield management is the fastest and easiest way to increase revenue in a Spa Executive Master Class Webinar. She also recently wrote an executive column for us on dynamic pricing.

Here we speak with her about how to make the most of the revenue generating power of spa and wellness.

Talk to us about your career trajectory.

I’ve been in the industry for about 40 years now. I started as a hairstylist, owning my own salon business for eight years. I sold up shop in my early thirties, decided to see the world, and joined cruise ships with Steiner Transocean. At the time I was asked if I wanted to be a manager, but I said no, I want to go out for six months and just have a fun time. But I’m too bossy, I guess, and was drawn back into leadership within my first contract. Six months became six years. I was Spa Director for multiple cruise ship spas, and saw some of the beautiful world, meeting amazing people, including my husband.  

When I left ships, I took a position as Executive Spa Director for the Ritz Carlton in Puerto Rico, about 21 years ago. When I started, the spa was $350,000 in debt and guest scores were very low. The training with Steiner’s taught me that you can provide great guest service and also make a profit. The team took a few months to get used to the new structure, but within six months we had an amazing team, who were also making money, the P&L was healthy, and our guest scores were in the top three company wide.

The corporate office quickly noticed that spas do not just have to be an amenity in our company if managed with a business mind set and sent me to open a large new spa in Atlanta, then to open a 40-room spa at the Ritz Carlton, Orlando, where I had an incredible nine years. While working in operations I also worked on The Ritz Carlton Spa corporate direction, developing programs, standards, and supporting The Ritz-Carlton Spa division globally. 10 years ago, I moved completely out of operations to oversee all spa brands into this incredible role, which I, absolutely, adore.

What are some of the biggest changes you’ve seen since you started in the industry?

As mentioned before, hotel spas were an amenity. It wasn’t understood or taken seriously.

Traditionally, hotel senior leadership haven’t always understood how spas can be a great asset, and how they need to be managed by smart, savvy business leaders with a support system in place to allow them to grow the business. In this continent, in 2019, we made almost a quarter of a billion dollars just in the Americas region for spas. That’s a lot of massages, a lot of business. So, I think we’re taken a little more seriously now and I have to say Marriott as a company supports and understands the importance of spa & wellness.

Does the hotel industry understand the revenue generating potential of spa and wellness?

If you look at all the major hotel brands, including Marriott, all are incorporating wellness. I think there is still a lot more work to do, but we are in a much better place than we were two years ago.  

I like to compare spas to a room’s division. You have a front desk, retail shop, a sales division, housekeepers, rooms, accounting etc. But we don’t turn 300 hotel rooms in two or three days. We turn 300 or more spa rooms in one day. When you explain it like that, it’s like a light bulb goes off for non spa leadership, as it’s a business they can relate to it. This is a complex business with very different employee dynamics, and you need to put a strong leadership organization and support in place for it to be successful.

Can you talk a bit about the benefits of yield management and why some people are afraid of it?

Spas frequently offer discounts to fill empty treatment rooms. It seems this is an accepted and fair approach to dynamic pricing. But this is a “Discount Strategy.” Just imagine the marketing and communication strategy: “Mud Wrap, 40% off,” ‘’Massage, 30% Discount.” Is this the way we want to position our spas, that of a discount house?

While discounting is an easy way to attract extra demand, it is unfortunately only a short term solution. A discount strategy can have a negative impact on the consumer’s value of treatments, services, and brand. Consumers will want access the discounted prices most of the time. Discounting will only down trade revenue potential.

Yield management is a simple concept. To implement differential pricing, we need to get more creative, by maximizing revenue during peak periods and deviating demand to off-peak periods, optimizing the overall revenue stream of the spa.

Instead of offering discount in shoulder periods, increase pricing in high demand times.  Example: you’re fully booked on Saturdays, between the hours of 2pm and 6pm, add an additional $20 to each treatment, if there is push back (which there rarely is) offer an alternative of a low demand time, or day at regular rack rate.

There’s always fear of change! But airlines, (almost of the verge of bankruptcy) took on this strategy many years ago and became very profitable! We are used to this with airlines and hotels, but not for spa. WHY? Let’s be the disruptors. We shouldn’t wait for every other industry to move forward.

However, successful implementation involves detailed analysis and careful decision making and planning withing a framework of clear and effective policies and procedures. Put strong processes in place, and we can be the disruptors, and make the change.

There are many facets to yield management. I launched a company-wide program about 11 years ago called Spa Plus, where the front desk or therapist would be financially incentivized for offering an upgrade within treatment time, like stones, face masks, CBD, scalp treatments etc, for an additional cost. We developed a comprehensive training platform including manuals and videos to ensure the teams were fully educated and prepared. This increased revenue by $8 million in 2019 with an 80% profit.

What challenges is the industry facing and will be facing in the foreseeable future?

Staffing continues to be a great challenge. There are far fewer massage schools than there were 10 years ago. Our trainers are dwindling. We have to find a way to get into schools, even high schools, and make spa look attractive. It’s just not appealing to them. We need to turn this around. By the time they get to college it’s too late, they already know what they want to do. We have to get into high schools and even pre high schools and say, “this is a great industry. You can make good money.” Massage therapists can earn sixty to a hundred thousand dollars a year in a resort spa, with great benefits, uniforms, holiday pay, 401K, leadership growth, and more. And we get to work in these beautiful locations. It’s a really great career. 

What are you excited about?

I’m excited about the future of wellness. The pandemic has highlighted the need to live a healthier life, physically and mentally.  Awareness on the benefits of sleep, mental health, meditation, breath work and physical activity will continue to grow. Wellness Technology is exploding, health tracking wearable devices, mattresses that sense your health patterns, meditation chairs, skin mapping. Touchless therapy such as float tanks, LED treatments, even IV therapy will allow offerings as staffing issues become more challenging.

Touch therapy (massage, facials, etc.) will always be important to the consumer, and will remain a high percentage of the business, but there are many other offerings we are starting to see.

I’m very excited about the new young leaders joining the industry. It’s our responsibility to educate, support and mentor young leaders, and what we can learn from them. The future is bright.

Looking for solutions to the spa staffing crisis? Check out some ideas by downloading this guide.

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

The post Marriott’s Suzanne Holbrook on the revenue generating power of spa and wellness appeared first on Spa Executive.