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The importance of pricing strategies in the hospitality industry
The hospitality industry is a highly competitive industry where pricing strategies play a crucial role in determining the success of a business. The price of a product is one of the major factors influencing its sales. However, the pricing strategy in the hospitality industry is not as simple as just setting a price. Many factors need to be considered, such as unique selling proposition (USP), cost per available room (CPAR), competitor pricing, and market segmentation.
In the hospitality industry, hotel rooms are considered perishable items, which means that if the product is not sold before the night audit, it results in lost revenue. An empty room in a hotel is lost revenue as maintaining an empty room incurs a running cost. One of the prime principles of revenue management is selling at the right price, but how do you know if you are selling at the right price?
The first factor to consider when setting a price is the unique selling proposition (USP). A strong unique selling proposition must correlate with the right price. USP does not necessarily have to be an inbuilt product in the room; it can be service-related or facilities-related. Value-added benefits will also add value to your product and demand a higher price.
The cost per available room (CPAR) is another important factor to consider when creating price points for a hotel room. CPAR is one of the metrics used in the hospitality industry to calculate the total cost of an unoccupied room at a given time. Understanding the CPAR is important to avoid any loss, and factoring in the CPAR will help generate profit.
The cost-plus pricing method is used during extremely low demand. During the pandemic, many hospitality establishments used this method to sustain their business. The hotel rooms were sold at a lower price, keeping the cost of operating plus a profit markup. Group pricing, especially tour series, can be locked profitably by calculating the rate based on the cost-plus pricing method during low-demand periods.
Refurbishment and renovation of hotel rooms are essential to maintain brand quality and offer quality products. A well-maintained room product often fetches a good price, as the quality of the product still has value. When a hotel room is refurbished, it can be positioned back into the market at a slightly higher price point.
Competitor pricing is another factor that should be considered when setting prices. When your room’s price points are in line with or below the price of your competitors, you may be trying to capture a larger fair share of the market. The method of competitive pricing involves analyzing prices and setting prices based on your competitor set. This technique is very widely used in the hospitality industry.
Pricing strategies in the hospitality industry are a critical component of revenue management. Pricing strategies must be carefully considered and analyzed based on various factors, such as unique selling proposition, cost per available room, competitor pricing, and market segmentation. A well-planned pricing strategy can increase revenue and maintain the hotel’s competitive edge.
Editors Note: The article above is based on a publication by OARS Consultancy, a hospitality consultancy firm located in Dubai. OARS, which stands for OCCUPANCY.ADR.REVPAR.SOLUTION, is dedicated to the hospitality sector with a strong emphasis on revenue management consultation and hotel and resort-related projects. The company comprises a team of professionals from around the world who bring their expertise together with the common goal of providing solutions to optimize revenue growth for hotels and resorts. For more information about OARS visit https://oarsolution.com/
Link to the original publication: Pricing Strateigies
OBLU NATURE Helengeli by SENTIDO has announced a 9-Hands Dinner event scheduled to take place from 25 to 27 May, offering a curated dining experience as part of its guest programme.
The event will feature a multi-course menu developed by three chefs representing Egypt, Madeira and the Maldives. Each chef will present dishes reflecting their respective culinary backgrounds, combining different techniques and flavour profiles within a single dining concept.
The dinner is positioned as an interactive culinary experience, bringing together elements of storytelling and presentation alongside the menu. According to the resort, the concept is designed to highlight both innovation and traditional influences in cuisine.
The experience will be included within the resort’s plan for in-house guests, forming part of the overall stay offering.
Commenting on the event, General Manager Alain Trefois stated that the initiative reflects the resort’s focus on expanding guest experiences beyond standard dining formats. He noted that the event provides an opportunity for guests to engage with culinary presentation in a structured setting.
Anupam Banerjee, Vice President Food & Beverage at Atmosphere Core, said the collaboration brings together different culinary influences, combining regional ingredients and techniques into a single dining programme.
Located in North Malé Atoll, OBLU NATURE Helengeli by SENTIDO is known for its house reef and marine environment, offering a range of activities alongside its accommodation and dining options.
The resort has indicated that availability for the 9-Hands Dinner event will be limited, with advance booking recommended for guests wishing to attend.
Sun Siyam Vilu Reef, part of the Privé collection within the House of Siyam, has announced plans to host a Wellness Week from 15 to 22 June 2026, in conjunction with Global Wellness Week. The programme will be led by international creative and fitness practitioner Ilariia Auvitu.
Ilariia Auvitu, whose background spans multiple countries and disciplines including acting, modelling and fitness, will guide a series of sessions focused on structured wellbeing practices. Her approach combines physical activity with routines aimed at supporting mental balance.
A key component of the programme is the Tech-Free Sunrise Yoga and Breathwork Ritual. The session is designed to provide a period of structured activity without digital devices, with a focus on breath control and guided movement aimed at supporting mental regulation.
The schedule will also include Morning Yoga with Flow sessions, intended to establish physical rhythm and energy for the day. In addition, Pool Fitness sessions will be conducted in the resort’s pool area, offering water-based exercise.
Selected evenings will feature Sunset Pilates and Stretching sessions. These will include low-impact exercises focused on strength and flexibility, followed by guided stretching.
Through the Wellness Week programme, Sun Siyam Vilu Reef is offering a series of activities aligned with the observance of Global Wellness Week, combining structured fitness sessions with a setting designed to support rest and recovery.
Baros Maldives has announced “Fully Ocean”, a week-long programme of marine conservation, education and guided activities scheduled from 1 to 8 June 2026.
The programme coincides with World Reef Awareness Day on 1 June and World Oceans Day on 8 June. It is positioned as an initiative to involve guests directly in conservation efforts, allowing them to participate alongside the resort’s marine team in activities focused on reef protection.
According to General Manager Ibrahim Shijah, the programme builds on the resort’s long-standing focus on reef conservation and aims to position guests as participants in that effort. Baros Maldives, which first opened in 1973, is among the early resorts in the country to implement a structured reef restoration programme. The property, which is Maldivian-owned, has maintained ongoing work through resident marine biologists and operational practices aimed at reducing environmental impact.
The “Fully Ocean” programme will run as a structured schedule of activities throughout the week.
On 1 June, the programme will begin with a guided house reef tour, followed by an information session for guests to register for activities. The day will conclude with night snorkelling.
On 2 June, activities will focus on coral restoration. Led by marine biologist Carissa Cabrera, the programme will include a snorkelling safari and workshops on coral restoration methods. Guests will have the option to participate in coral planting or sponsor coral frames.
On 3 June, a fish-focused programme will include identification workshops and in-water sessions for divers and snorkellers. The afternoon will feature activities in the Palm Garden, including educational games and painting sessions, followed by night snorkelling.
On 4 June, activities will focus on reef ecosystems. The programme will include guided dives under the Microlife Finders initiative, snorkelling safaris and low tide exploration of marine species such as shells and sea cucumbers. The day will conclude with a “Glow in the Dark” session, combining a presentation with a UV-assisted night snorkelling experience.
On 5 June, marking World Environment Day, the programme will include a guided nature walk around the island and a photography competition titled “Maldivian Treasures”. A second “Glow in the Dark” session will be held in the evening.
On 6 June, the schedule will include guided reef tours and night snorkelling.
On 7 June, designated as Turtle Day, the programme will feature activities led by the Olive Ridley Project, including awareness sessions and workshops on turtle conservation and responsible interaction.
On 8 June, the programme will conclude with a guided reef tour, a reef clean-up activity and a final night snorkelling session.
Some activities during the programme will be complimentary, while others will be offered at an additional charge. Booking and programme details are available through the resort.
The “Fully Ocean” initiative will coincide with Baros Maldives’ “Endless Summer” offer, running from May to October 2026. During this period, the resort is promoting travel during the off-peak season, when marine conditions attract species such as manta rays and whale sharks to nearby atolls.
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