Pricing as an underrated lever in thermal spa operations
Many spas are under constant economic pressure: fluctuating energy costs and staff shortages, high investments in infrastructure, plus seasonal fluctuations in demand and limited capacities. And yet one of the biggest levers for optimising sales is often insufficiently used: pricing.
In many spas and spas, pricing is seen as an administrative task: Prices are set once a year, a fixed amount or percentage is often added to all offers, rarely based on data. Dynamism, flexibility or the targeted management of demand through price impulses? Bad news.
There is enormous potential in pricing. Provided that it is strategically thought through — and intelligently implemented.
Why thermal spas in particular benefit
Spas and spas have particular challenges in their business model:
- Hot springs have limited capacities, at some point, the pools, the thermal areas or the boxes and cabins are full.
- The demand is highly fluctuating, on weekends, public holidays and in good or bad weather, spas are usually bursting at the seams, while there is still plenty of capacity in the off-season and on weekdays.
- Experiences are a perishable offer: An unused space in the pool, an unsold day pass — all of this cannot be “stored” or made up for the next day. In contrast to physical products such as a bottle of cola, which can be sold tomorrow as well as today, the service is ephemeral.
- Fixed costs are high, the variable cost share is low — that means: An additional guest delivers a contribution margin even if the ticket price is low.
A data-based pricing system addresses these challenges and thus sustainably optimizes operations. The aim is to better distribute occupancy, motivate guests at an earlier booking time, optimize the return per guest entry, address a larger target group through a wider range of attractive price points and thus achieve more sales overall.
From rule-based to data-based pricing: This is how spas become more resilient
Many spas have already taken the first steps towards “dynamic pricing”: with rules such as a weekend supplement or early bird discounts. But rule-based pricing quickly reaches its limits:
- It only takes into account a few influencing factors.
- It is rigid and reactive, not learning.
- It requires frequent manual intervention if it is to be kept up to date.
Data-based pricing based on more accurate demand forecasts is the next step.
- An intelligent algorithm analyses historical and current booking data.
- External influencing factors that are decisive for purchasing decisions — such as weather data, holidays and public holidays, are also taken into account.
- In addition to the expected demand for each day and tariff type, the demand that has already been realized is also continuously included.
- Last but not least, it is crucial to consider how guests react to a price change — for this, it is crucial to have a good knowledge of price elasticities.
The result: a pricing system that constantly adapts, learns and sustainably optimizes your business results.
How to successfully introduce a data-based pricing model in spas
If you want to introduce data-based pricing, you should pay attention to the following points:
- Create a data basis: No forecast is possible without valid data. High data quality and timeliness is the basis for every data-intensive application.
- Understanding guest behavior: The system should not only react to workload, but should also optimally take into account the preferences, booking behavior and willingness of the various guests to pay. After all, it is also the guests who make the purchase decisions taking into account the price offered.
- Clear price communication: Every form of pricing requires clear, understandable pricing communication. It is important that guests understand how they can behave in order to choose the best price for them.
What is the impact of data-based pricing?
Companies that have introduced data-based pricing with Pricenow report, among others, on:
- higher total turnover by offering an attractive price range
- lower costs thanks to higher online share
- better predictability thanks to more bookings in advance
Conclusion: Pricing is not a tool for controlling — but a strategic management tool for guest steering, quality of experience and economic success.
Anyone who recognizes this lever and uses it correctly is more successful.
Would you like to know how data-based, demand-oriented pricing with Pricenow works in your thermal spa?
Then talk to us — we'll be happy to show it to you.
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