Health, Wellness and Tourism: healthy tourists, healthy business ...

Managing Cost, Revenue and Yield in the Tourism Wellness Industry
Patrizia Modica
Department of Economics and Business Studies, School of Economics
University of Cagliari
Viale S. Ignazio 17, 09123 Cagliari
Italy
modica@unica.it
Elisa Scanu
PhD School of Management and Accounting
University of Cagliari
Viale S. Ignazio 17, 09123 Cagliari
Italy
Abstract
The tourism wellness industry is a rapidly growing sector facing a number of challenges in
today’s fast-paced world, where people are looking for solutions to their wellness needs.
Management of this demand requires the implementation of a robust strategy in order to
maximise profitability and customer experience. This study considers the application of yield
management as a suitable approach, which is tested in this case in day spas as part of the
wellness industry. The viability of yield management in this field is investigated using a case
study approach, considering particularly the conditions required, and whether this managerial
method can generate significant benefits.
Keywords: Tourism wellness industry; Spas; Yield management; Pricing policies
Introduction
A healthy lifestyle plays an important role in the culture of individuals. Having a good
appearance, a good state of health, and a sporty lifestyle are personal desires that lead to
specific actions and behaviours. This is in contrast to attracting and opposite forces that lead
to unhealthy choices, for example, bad food or overeating, a sedentary lifestyle, or excessive
drinking. Healthy behaviours are generally prevalent in developed societies and this is
reflected in a sense of personal harmony with the environment. The need for wellbeing is
widespread and stimulates people to express a demand for health and wellness products. This
demand tends to accompany a person in everyday life – at home and away, at work, during
free time and in leisure moments. A combination of health, wellness and tourism can naturally
contribute to relaxation, exploration, socialisation, a sense of self-worth (McIntosh et al.
1984) and, moreover, quality of life (Bushell et al. 2009).
The wellness industry has emerged and grown in recent decades around the world (Erfurt-
Cooper et al. 2009, Smith et al. 2009), providing services for both resident and non-resident
customers. These services are provided by spas, gyms, beauty salons and adventure or
sporting travel organisations, among others. In the tourism wellness sector this industry
attracts different, economically-promising segments of demand. The management of the
demand for tourism wellness products can represent a challenge for entrepreneurs,
shareholders and managers. The tourism wellness industry needs to identify the characteristics
of this demand, which can contribute to the management of costs, revenues and profits, thus
revealing industry performance. The demand for tourism wellness products is generally