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

Method: A Case Study Approach
The aim of this research is to analyse the effectiveness of revenue management in the
wellness industry, particularly in spa firms. For this purpose a case study approach is
appropriate, as this method permits exploration of the use of revenue management, and the
development of recommendations for the management of the wellness industry based on the
findings. A case study is defined as “a study of events within their real life context” (Yin
2009). This research looked at “Beauty Center Valentino”, a prominent day spa located in a
charming villa in the centre of Cagliari, the capital of Sardinia. The case study looked at a
single organisation representative of spa firms around the world and attempts to answer the
following research questions: first, are all the conditions to apply yield management to the
tourism wellness spa industry present?; second, is it possible for yield management to be
implemented and developed into this segment of the market?; and third, can yield
management improve profitability, and improve and maintain customer satisfaction?
To build the case study different types of data were required: capacity characteristics of the
day spa; demand characteristics; available services; cost structure; pricing policies and
revenue performance.
A six step approach was used to collect this data.
1. A conversation with the owner/manager to obtain general information about the spa
and explain the research project.
2. A semi-structured interview with the owner/manager and head receptionist about spa
policies and performance.
3. A questionnaire delivered to the head receptionist to complete regarding the spa’s
performance data and customer typology.
4. A focused interview regarding the cost structure to identify a fair margin product to
discount in February 2010.
5. Further interviews regarding the status of the study.
6. A further focused interview to collect the results, discuss the test, and obtain
information regarding the Italian wellness market.
First Step
The conversation was an opportunity to meet the owner/manager and obtain information
regarding the characteristics of the spa supply (services offered), capacity, pricing policies
and discounting, and customer typology, with particular regard to income, age, gender and
time and price sensitivity. The concept of yield management was explained, as well as the
importance of its implementation in the wellness industry to maximise profits and benefit
customers. It was requested that the spa test a particular discounting policy on a product for a
period of one month. This test is a simplified opportunity to observe the effects of the
implementation of some aspects of yield management in the short-term.
Second and third step
Yin (2009) regards the interview as “one of the most important sources of case study
information”, in particular suggesting the use of semi-structured, or guided, conversations
rather than structured queries, though still following a line of inquiry. Furthermore, the use of
a semi-structured, as opposed to a totally unstructured, interview better suits the addressing of
specific issues (Bryman-Bell 2007) and the acquisition of specific information.