Pricing with Purpose: Smarter Spa Revenue Through Yield Management

In this insightful episode of The StarrCast Podcast, host Lisa Starr welcomes two industry leaders—Tony Nicastro, Senior Global Manager of Spa & Fitness at Marriott, and Derek Hofmann, Senior Director of Spa & Wellness at Four Seasons— for a deep dive into the evolving practice of yield management in spas. Once a foreign concept in wellness, dynamic pricing is now gaining traction as spas seek to balance rising demand, staffing challenges, and revenue growth.

Drawing on years of leadership in global hospitality, Tony and Derek explore how spas can apply airline-style pricing to spa appointments, the technology that supports this shift, how to implement it without guest pushback, and how it's even enhancing guest satisfaction. With practical takeaways, real-world examples, and forward-looking strategies, this episode is a must-listen for spa leaders ready to evolve their pricing models and maximize profitability.

Key Takeaways:

• • Yield management is underutilized in spas—yet it's perfectly suited to spa services due to time-sensitive, limited inventory.
  • Technology now enables flexible pricing based on day, time, utilization, and demand—automatically and without manual input.
  • Guest satisfaction may improve, not decline, under dynamic pricing, by offering better access and clarity.
  • Staff compensation strategies must evolve in tandem, balancing fairness, motivation, and profit.
  • Online booking systems encourage upselling and reduce pressure on front desk teams.
  • Dynamic availability (managing service duration) is another tool to optimize flow and elevate guest experience.
  • Cultural and operational differences affect adoption across global markets, but the momentum is growing.

Guest Highlights:

Tony Nicastro brings a global view from Marriott's vast portfolio, where he's helped pioneer dynamic spa pricing practices across North America. His data-driven approach blends guest psychology, technology integration, and measurable ROI.

Derek Hofmann helps to shape wellness strategy for Four Seasons and shares candid insights into market variability, team adoption challenges, and why dynamic pricing isn't just about profit—it's about elevating the guest journey.