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Traditional pricing models in the beauty and wellness industry feature fixed or static prices for each service. But a newer trend that has taken root in other industries can help salons and spas realize additional revenue. It's called dynamic pricing or surge pricing, a strategy in which the cost of each service is adjusted based on supply and demand.

With such a pricing model, a salon or spa would charge more during peak times, with software dynamically applying the surge price.

How does dynamic pricing work?

Dynamic pricing involves the use of software algorithms to determine rates in real time based on supply and demand. For salons and spas, the Zenoti software platform's AI takes into account factors like the day of the week, time of day, and staff availability and demand.

With software parsing data on historical pricing trends, customer behavior, and competitor pricing, rates are adjusted to maximize revenue and profitability.

Here’s one example of how it can work: The business may choose for dynamic pricing to kick in once a particular business threshold is met on a busy day – say, a specific utilization rate. A customer booking an appointment online will see the higher price, as well as reference to the usual rate.

The concept of dynamic pricing is nothing new for consumers who’ve paid a higher rate for an Uber ride during a busy time, or more for airline tickets on specific dates. Even so, the owners and managers of beauty and wellness businesses might wonder if dynamic pricing is a turnoff for clientele used to static pricing.

"You will still get guests who are happy to pay for the luxury of a service, when they want it, which is usually at peak times," says Jeff Butterworth, chief spa and wellness officer at LUX Resorts, in a Professional Beauty article on revenue management.

Benefits of dynamic pricing

On the surface, dynamic pricing appears to mainly improve business profitability. However, this model offers advantages for service providers and customers, as well. Here are the key benefits:

Driving more revenue for your business

By charging higher prices during peak hours when demand is high, businesses can maximize profitability from guests who are willing to pay more.

Charging the right price per service and provider

With dynamic pricing, you can tailor your menu of offerings to better align with what customers are willing to pay.

Improving service provider satisfaction and retention

Each higher-priced appointment means the potential for higher tips for service providers. When you help them earn more, they're more likely to stay loyal to your business.

Offering price-sensitive guests a choice

When dynamic pricing is transparent, those willing to pay extra have that opportunity, and others can opt for a less in-demand time slot at a lower price.

Is dynamic pricing difficult to implement?

No. Dynamic pricing sounds complicated to manage, but it's not. With the right AI-driven software coordinating the pricing structure, running dynamic pricing requires no manual intervention. With Zenoti, the AI algorithms do all the work to adjust your pricing when demand is high for a particular time or provider.

Dynamic pricing doesn't complicate the booking and checkout process. Salon scheduling software see the applied higher prices and original pricing, so there are no surprises. The Zenoti system even suggests off-peak slots to guests who want to pay the regular price. Besides, dynamic prices carry over automatically to checkout and payment collection, leading to a seamless experience for guests and staff.

Why Zenoti?

Beauty and wellness businesses can implement Zenoti's dynamic pricing with confidence. The company's algorithms are based on 13+ years of extensive industry knowledge and anonymized real-time data gathered from over 25,000+ businesses using the platform.

With this pricing model in place, salons and spas can increase profitability, stay competitive, help service providers earn more, and improve the experience for guests by giving them what they want when they want it.

Request a free demo on dynamic pricing for your salon or spa.

Photo credit: Angela Roma on


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Gita Mani
Senior Content Specialist
Gita helps brands find the right words for their messaging, with the customer’s best interests informing her approach. Being in nature is her favorite way to unwind.
Cullie Poseria
Senior Product Marketing Manager, Fitness
Coming from a healthcare family, growing up as a competitive athlete, and being trained as a filmmaker, and MBA, Cullie brings diverse experience to her storytelling and digital business-to-business product marketing. Her writing focuses on sharing trends and insights from her experience in software, entertainment, wellness, and fitness.

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