Spa Executive December 2023

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Pay people as much as you (really) can – Obviously compensation is a huge part of why people leave jobs. If they can’t make enough money to not just pay their bills but also live a life worth living, why do they want this job? They might need it – but they won’t want it. Meaning, they’ll apply for it and accept a lowball offer but the moment something better comes along, they’re going to take it and leave. And if you run your business this way, turnover will always be high. If you can’t afford to pay people what they’re worth, that’s not an excuse, it’s a problem to fix by looking at ways to increase revenue and decrease costs. Tiered, performance-based compensation systems are something to consider. Keep time to hire short – Time to hire is a crucial metric in a talent crisis. Research has found that time to hire is increasing and is approximately 44 days across all industries. While hospitality is generally lower than the average, keep in mind that the faster people can move through the process without cutting corners, the better. When someone is actively seeking employment, they are not just applying with one company and they don’t want to wait six weeks to find out if they are going to be able to eat and pay the rent and will take another offer if it comes along. Don’t burn out your teams – Burnout is big in spa and hospitality as managers try to fill the gaps by demanding more of the people they do have. It’s understandable to a degree. Bookings can be unpredictable and you can’t hire a bunch of staff for busy times, only to have them sitting around with nothing to do the rest of the time. Again, however, it’s leadership’s responsibility to smooth this out by maximizing schedules and accepting that sometimes you have to turn away customers. Yield management can be a life saver in this area, as you can fill less in-demand time slots with dynamic pricing. Provide growth & advancement opportunities – Advancement and growth opportunities are important to people. Nobody wants to feel like they have nowhere to go and upward momentum is key to many people’s happiness. Short sighted leaders keep people stuck in the same roles while prescient ones support their growth. This will mean that some people leave, but it also means they will be happy in their roles while they are in them, which reflects on your guest experience. And if you don’t let them grow, they’re going to leave you anyway, so you might as well nurture those careers and relationships. Tracking employees into management roles also means that, when the time comes, you have well-trained and experienced managers who know your brand. Offer comprehensive training & onboarding – At no point should an employee not know what is expected of them or what they are supposed to be doing. Offering comprehensive training and onboarding builds employee confidence and gives people the tools and information that they need to perform at their best, and people feel good when they know they are doing a good job. It also streamlines processes and improves guest experience. Don’t skip this step. Optimize scheduling – Shift work can be frustratingly uneven and that is bad for staff morale. Again, your software’s yield management functionality can help fill less busy time slots. Turn-away tracking, meanwhile, can help you determine reasons for turning away customers so you can tweak schedules accordingly. Your software should also eliminate conflicts and be accessible from anywhere so your team can check their schedules from wherever they are and at whatever time. Recognize & reward your people – Recognition helps to build strong company cultures. Just like nobody likes to feel stuck, people don’t like feeling invisible and unappreciated either. Recognizing employees is also good for business. A study by Gallup and Workhuman found that by making recognition an important part of company culture, a 10,000-person organization with an already engaged workforce can save up to $16 million annually due to reduced employee turnover. Reward the big things, but also reward the little things, and don’t always focus on the stars. Your B players should be recognized too. They are an important part of your business. Share business goals – When people feel like they are an integral part of the success of something, they are more invested in that success. This is why sharing your goals with your team members so that everyone is aligned is a key strategy. This gives people something to work towards, gets them working together, and helps provide direction. We all need a target to work towards. Employers need to start giving people what they want & need – and not just barely meeting these needs but exceeding them. Only then will people want to join our teams and stay. 10 | Spa Executive
Increase spa revenue in 2024 Increase spa & 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. 11 | Spa Executive
Page 1 and 2: ISSUE #50 DECEMBER 2023 SPA EXECUTI
Page 3 and 4: Contents December 2023 4 Volume 50
Page 5 and 6: adjustments and unnecessary costs?
Page 7 and 8: Dear Sal, I need advice about a cus
Page 9: How spa & hospitality can attract a
Page 13 and 14: Declutter your spa menu in 2024 Is
Page 15 and 16: Spa stars: How to cater to your cus
Page 17 and 18: approaches to well-being, allowing
Page 19 and 20: project was on wellness (which was
Page 21 and 22: Raffles Boston Featured property: G
Page 23 and 24: ARE YOU PASSIONATE ABOUT THE SPA &
Page 25 and 26: The hospitality and wellness indust
Page 27 and 28: Book4Time partner spotlight: Nonius
Page 29: FOR LEADERS IN THE BUSINESS OF WELL

Spa Executive December 2023

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