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hour and “combines information from the average customer expenditure and treatment room
use to provide a measure of flow of revenue (…) and to indicate how effectively a spa is using
its productive capacity” (Kimes 2009). This measure is complementary to the occupancy rate
as it also considers revenues. A manager’s purpose is not only to increase occupancy. Indeed,
an indiscriminate discounting policy can increase the number of treatment rooms occupied yet
have little influence on revenues.
The following tables show day spa Valentino’s occupancy rate; RevPath during the three
months studied, shown as a percentage based on the highest RevPath level achieved on the
Monday in July from 1:30pm to 3:30pm.
Table 9 Day spa Valentino’s occupancy rate in 2009
Monday
9:00-
11:00
Friday
9:00-
11:00
Monday
1:30-
3:30
Friday
1:30-
3:30
JULY SEPTEMBER NOVEMBER
8% 6% 8%
17% 17% 16%
42% 17% 33%
58% 42% 50%
spa to be unsatisfactory, though she
believes the clientele base of the spa
industry will increase significantly in
the coming decade, with men, and
women in their twenties becoming
regular spa users.
The performance data generated by the
case study is shown in the table below.
Table 10 Day spa Valentino’s
RevPath in 2009
Monday
9:00-
11:00
Friday
9:00-
11:00
Monday
1:30-
3:30
Friday
1:30-
3:30
The owner/manager gave information on
the personnel policy at day spa
Valentino, which can affect the RevPath.
For example, in the summer months
customers are more likely to visit the spa
in the afternoon and visit the beach in the
mornings, so the spa has fewer therapists
working at these quieter times. She also
reported difficulties in increasing the
number of therapists whilst demand
levels are low. The owner/manager was
also surprised at the performance data
figures, despite having a general feel for
the performance of the spa and having
full capacity in the multi-use treatment
rooms at some points during the week.
She considered the performance of the
JULY SEPTEMBER NOVEMBER
27.64% 31.58% 13.90%
6.33% 31.58% 13.92%
100% 33.17% 30.26%
59.1% 57.00% 58.30%