The numbers for Spa A are typical of a
high-end spa where the operator prefers to
have a lower occupancy so a relaxed ambience
can be offered, but must compensate
for this lower occupancy by having a higher
expenditure per guest. Conversely, Spa D’s
numbers are common for a day spa that has
a relatively low average expenditure per
guest. To compensate for the lower rates, the
operator of this spa must achieve a high volume
of business. The trade-off between
occupancy and average expenditure is a
strategic one, and one that must be carefully
considered when positioning one’s spa.