Why Average Check Can Be A Misleading KPI #611
Today his why average check for treatment can actually be misleading. KPI okay average chick for treatment is one of the core. KPI's for most hotels says it is expressed in dollars or whatever you're you'll providing currencies of course and it's calculated simply by taking the total treatment revenue divided by the total number of guests. Now with some people go wrong with his. KPI is they treat it as a measure of officiency which of course it's not because if you have a one hour treatment selling for one hundred dollars that's going to be much more efficient and then a two hour treatment that selling one hundred ninety five dollars however if you're selling more of those to our treatments than your average check of course is going to be high now in terms of benchmarking it's almost a case of how long is a piece of string. Unfortunately because the main variable in your average chick is obviously the price that's point of your treatment and that can vary considerably from hotel to hotel spa and even within the SPA itself in terms of the treatment. Meaning so what I like to do and I'm I'm looking to benchmark a KPI like average chick for treatments is looked to the hotel room rate. So we've got a hotel room rate. That's averaging around two hundred dollars then in terms of the amount of money going to be spent in the SPA. You can't really expect in average check around one hundred ninety five dollar mark because consciously or subconsciously. Louis guests are gonNA make comparisons between the price of a hotel room and the price of a SPA treatment. And if they're paying two hundred dollars for the hotel room they're probably not going to pay close to two hundred dollars for treatment in the spa so generally what I would do is say if it's a two hundred dollar average room rate for the hotel the SPA for a standard one hour treatment. It should be aiming to get at least fifty to sixty percent of that so anyway for maybe one hundred hundred ten dollars you would also hope that your average check is going to be up slightly because not everybody is taking one out treatments some. We'll take you know one and a half hour treatment so to our packages so that of course will bump your average checkup a little. So as is a baseline I would be saying. If we've got a two hundred dollar a room hotel room. Two hundred dollars average room rate for the hotel room. I probably looking for an average chick for treatment of around about one hundred twenty five dollars thereabouts. So that's what I reckon. What do you reckon I would love to hear your thoughts. It's on the matter. Do drop me a note in the comments below and let me know and I thank you for your time and I will be back again tomorrow so yeah.