Why Average Check Can Be A Misleading KPI

Spas sometimes can try to read more into this KPI than there really is.

Average Check for Treatment is…

Expressed as a $0.00

And is calculated by taking Total Treatment Revenue / Total Spa Guests

The pricing of the treatments on your spa menu is the key variable in this KPI.

BE careful. This is not necessarily a measure of efficiency. A 1 hour treatment that sells for $100 is more efficient than a 2 hour treatment that sells for $185. If you book more of the 2 hour treatments, your Average Check will be higher, but you are actually being less efficient with your resources.

As cost of treatment is not factored in here, this is also not a profitability measure.

#hotelspa #spabusiness #KPI #spametrics