I think most of the hotel spa and massage businesses are there to take advantage of wealthy country customers. They know that when they charge $80 a session they will get 20 customers per day. They can then upsell another 20 services to these same customers. If they priced them at $20 a session, they would probably only get 40 customers per day, and have much less success at upselling. They would also need more staff, and since tips are often based on the final bill, the staff will make much less in tips.

20 x $80=$1600. Plus 20 add on services, 20 x $50=$1000. Tips/svc charge, $2600 x .20=$540. 3 therapists working. $180 in tips per therapist.

40 x $20=$800. Plus 10 add on services, 10 x $20=$200. Tips/svc charge, $1000 x .20=$200. 5 or 6 therapists working. $30-40 in tips per therapist.

The value shopper type customer will still go down the street to pay $8 or $10 an hour. By pricing themselves higher, the hotel makes itself seem more exclusive. They need less staff, and make a much higher profit. A staff member would rather do 6-7 massages a day, and make big tips, than be run ragged all day for $2-5 tips per massage.

The wealthy visitors, ooh and aww, about how it’s only $80, so much cheaper than the $200 or $250 it costs in Sydney. Likely the Balinese massage is better, too.

Myself, I have gone to the cheaper places when I first came to Bali over 20 years ago. Nothing wrong with them, but perhaps humble massage rooms, and tired ladies. For the last 15 years, I usually call a service that has very professional staff. Many hotels will allow them to come to the hotel, but the security staff always seems to request a “tip” of at least 50k.

In my home city of Bandung, I’ve had the same nice lady giving me 2 hour deep muscle massages for over a decade. Costs $13 USD, including tip.