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The importance of pricing strategies in the hospitality industry

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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

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Ifuru Island Maldives wins Best Premium All-Inclusive Resort at Golden Travel Awards 2025

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Ifuru Island Maldives has been officially named Best Premium All-Inclusive Resort Maldives 2025 by the prestigious Golden Travel Award, recognising the resort’s exceptional guest experience and innovative all-inclusive offering. The resort distinguished itself through its commitment to redefining the premium all-inclusive concept with a bold combination of curated adventures, gourmet dining, and a true sense of luxury.

Marcel Sawyer, General Manager of Ifuru Island Maldives, expressed pride in the recognition, noting that it celebrates the dedication and passion the team invests in creating unforgettable moments for every guest. He emphasised that the resort’s experience is designed to offer guests the freedom to relax, explore, and feel truly at home, all within the comforts of a premium all-inclusive package.

Ifuru Island Maldives has quickly established a strong reputation with its thoughtfully crafted ‘Exclusively Yours’ Premium All-Inclusive package. With a fresh approach to luxury and authenticity, the resort continues to resonate with modern travellers who seek both comfort and meaningful connections.

This acknowledgment from the Golden Travel Award further solidifies Ifuru Island’s growing reputation as one of the Maldives’ most distinctive and experience-driven destinations.

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Float & Flow Yoga debuts at Holiday Inn Kandooma Maldives

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Holiday Inn Resort Kandooma Maldives now offers guests a unique wellness activity: Float & Flow Yoga. Set amidst the picturesque surroundings of crystal-clear waters, this innovative session blends balance, movement, and mindfulness on a stand-up paddleboard (SUP), fostering a joyful connection with nature.

Designed to accommodate both experienced yogis and beginners, Float & Flow Yoga provides a 60-minute session on the resort’s SUP Yoga Dock. This specially designed floating platform, shaped like a flower, features eight “petals,” each securing a SUP board around a central space designated for the instructor. Participants are guided through gentle yoga sequences that emphasise balance, breath, and flow.

Courtney Chambers, the resident Yoga Instructor at Holiday Inn Resort Kandooma Maldives, describes the activity as a joyful and liberating experience. She notes that SUP yoga encourages participants to embrace the playful side of the practice while reconnecting with nature.

Classes take place every Monday, Wednesday, Friday, and Sunday at 10:00 am, with a maximum of eight participants per session to maintain an intimate and supportive atmosphere. A minimum of three guests is required for each session. The class fee is priced at US$45 per person, inclusive of taxes and service charges.

Additionally, a professional drone photo and video package is available for US$25 per person, providing guests with a memorable keepsake of their experience.

Participants are advised to wear comfortable swimwear or yoga attire and to arrive 10 minutes early at the Perfect Wave Surf Shop for a pre-session briefing.

Whether the goal is mindfulness, gentle movement, or simply a splash of fun, Float & Flow Yoga at Kandooma offers an unforgettable opportunity to reconnect with both self and sea.

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Five-course Indian fine dining by Atrangi to feature at Jumeirah Olhahali Island’s June pop-up

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Jumeirah Olhahali Island has announced an exclusive culinary pop-up in collaboration with Atrangi by Ritu Dalmia, the renowned Indian restaurant located at Jumeirah Al Qasr in Dubai. Scheduled from 7 to 12 June 2025, this special event will feature Atrangi’s Head Chef, Aniket Chatterjee, who will partner with the resort’s culinary team to present a refined five-course dining experience. This unique collaboration aims to reinterpret regional Indian dishes through a contemporary perspective.

Atrangi, inspired by the vision of acclaimed chef and restaurateur Ritu Dalmia, is celebrated for its bold and eclectic approach to Indian cuisine. Ritu Dalmia, a self-taught chef, began her culinary journey by launching Delhi’s first standalone Italian restaurant at just twenty-two. Over the years, she has established a portfolio of acclaimed restaurants across India and Europe, earning her widespread recognition in the culinary world. Representing her creative vision in the Maldives, Chef Aniket Chatterjee brings a modern sensibility and a profound respect for Indian culinary traditions, promising a dining experience that is both sophisticated and soulful.

For this special occasion, Chef Aniket has curated a bespoke menu that masterfully blends traditional Indian techniques with global influences. Guests will be treated to intimate oceanfront dinners and relaxed beach grills under the stars, with both vegetarian and non-vegetarian tasting menus available.

The dining journey will commence with a playful twist on the nostalgic chilli cheese toast, followed by pickled doodhi and smoked dahi. Main course offerings include Malvani chicken tikka with confit garlic, or for vegetarians, paneer peeli mirch tikka accompanied by spring onion curry. A whipped butter board will serve as a palate cleanser before guests savour dishes such as kappa meen curry or satu pulao with dalma, parwal, and burnt tomato chutney, celebrating the rich diversity of Indian flavours. The meal will conclude with an indulgent Indian sweet, followed by mignardise featuring pistachio soan papdi and a mini jalebi with rabri.

Chef Ritu Dalmia expressed her excitement about the event, stating, “The Maldives has always been a special country for me, having visited several times. It is a thrill to bring Atrangi to Jumeirah Olhahali Island, where we can showcase community-inspired dishes while celebrating the best produce the Maldives has to offer.”

The beach grill dinner at Shimmers Beach on 10 June will be priced at USD 225 plus taxes per person. On other evenings, the five-course set menu will be served at a designated ocean-view location for USD 195 plus taxes per person.

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