Hospitality Roundup: 10 Tips to Increase Your Hotel Spa’s Profitability

Ashley Taylor Anderson

How to increase hotel spa profitability

We know it’s impossible to keep up with all of the news in the hotel spa management space. That’s why we’ve cherry-picked article on topics that matter most for hotel spa managers like you.

[Finances] 10 Tips to Increase Your Spa’s Profitability


Hotel spa managers are under constant pressure to increase their profitability. These 10 tips will help set your spa up for success:

  1. Simplify your menu.
  2. Apply revenue and yield management techniques.
  3. Compensate employees to deliver on your values.
  4. Maximize your use of space.
  5. Make upgrades and add-ons easy.
  6. Keep a consistent service to retail ratio.
  7. Develop strategic promotions.
  8. Monitor your spa’s KPIs.
  9. Manage inventory closely.
  10. Add value rather than dropping prices.

Why It Matters: When you’re asked to boost profits, it’s often difficult to know where to start. Each of these 10 tips falls into one of 3 categories: Simplifying, Monitoring, and Adding Value. Simplifying your offerings or processes can cut wasteful spending needed to maintain unprofitable services or procedures. Monitoring your results can help you identify where to cut back on areas that are struggling and where to invest more in areas that are working. Adding value means providing an enhanced experience to your clients that you can charge more for, or continued to bring in healthy revenue.

[Software] How to Optimize Your Spa Management Software


Once you’ve done the legwork to get your hotel management and tech team’s buy-in for a new spa management software system, you may think your work is done. Nope! Unless you invest time into learning how to use your system to it’s fullest capacity, it’s unlikely that you’ll get as much out of your investment as you initially anticipated (or your management expected).

Here are 5 important ways to optimize your workflow so you can get the most out of your spa software: 

  1. Explore your tools so you don’t overlook any helpful functionality.
  2. Understand what information you need from your system and how to report on it.
  3. Monitor your Key Performance Indicators (KPIs).
  4. Analyze the information your reports provide.
  5. Adjust and adapt to the results of your reports in real time.

Why It Matters: Many spa managers assume that a better management platform will by default bring in more bookings and revenue. While improved systems can definitely have a positive impact on your bottom line, you have to learn how to use your software and make use of the data it’s capturing in order to improve your day-to-day business practices. In order to get the greatest return on your investment, you have to spend time with your new program so you understand everything it can do for you—and make use of every tool available to you.

[Management] A Show of Staff Appreciation

Source: DAYSPA Magazine

Your clients may come first, but your staff should come second by just a hair. Your technicians are the face and voice of your spa, and they’re the ones responsible for providing the great treatments and service that bring your patrons back again and again.

Investing in your staff members isn’t just a nice thing to do—it’s a smart thing to do. If your employees are happy and feel like valued members of your spa, that will translate into success for your business. Taking time to appreciate your staff will:

  • Reduce turnover.
  • Increase profitability and customer satisfaction.
  • Reduce tardiness.
  • Increase productivity.
  • Reduce safety incidents.

Appreciation can be as simple as a thank you, grabbing someone coffee on your break, or complimenting an employee on a job well done. You can also have more formal gestures of appreciation such as a technician of the week or end of year bonus or celebratory staff party.

Why It Matters: Your staff is your most valuable resource, so make sure to do everything you can to make sure they feel appreciated!

About the Author

Ashley Taylor Anderson

Ashley Taylor Anderson is a content developer and marketer who's spent her career knee-deep in the B2B technology space. In previous professional lives, she worked as a science textbook editor, media producer, and pastry chef.

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