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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
Sheraton Maldives Full Moon Resort & Spa has introduced its Family Fun Summer offer, a family-focused package designed to encourage guests to spend time together through dining, leisure and recreational activities in a private island setting.
Located 15 minutes by speedboat from Velana International Airport, the resort is offering the package as a year-round experience, despite its summer branding. The programme is intended for families seeking a stay that combines accommodation, meals and activities in a single offering.
The experience includes daily breakfast at Feast, where guests can access buffet selections for adults and children. Lunch is served as a three-course beachside meal, while evenings include buffet dinners, à la carte options and access to the resort’s speciality restaurants.
As part of the package, adult guests receive a USD 45 dining credit per night, which can be used at selected outlets including Baan Thai and Sea Salt. The offer is designed to expand dining options within the resort’s full board arrangement.
The package also includes activities aimed at different age groups. Children have access to the Sheraton Adventure Club, while families can take part in pool activities, water sports, sunset dolphin cruises and guided snorkelling excursions.
For guests seeking wellness experiences, Shine Spa for Sheraton offers a range of treatments, with the package including 15 per cent savings on selected services. The resort has also introduced a spa experience designed for parent and child. Additional recreational options include sunrise beach yoga, as well as access to tennis and football facilities.
Other inclusions within the offer include a complimentary family photoshoot and dining benefits for children when eating with their parents.
Family Fun Summer is available for booking until 15 June 2026, for stays through to 20 December 2026. Through the package, Sheraton Maldives Full Moon Resort & Spa is presenting a family-oriented resort experience centred on dining, recreation and shared time together.
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InterContinental Maldives Maamunagau to mark Mother’s Day with wellness and dining offerings
InterContinental Maldives Maamunagau Resort has announced a Mother’s Day programme centred on wellness, dining and family experiences, offering guests a range of activities designed to mark the occasion in Raa Atoll.
Set within the resort’s island setting, the programme will feature a series of experiences aimed at encouraging families to spend time together through relaxation, dining and shared activities.
At AVI Spa, the Mother’s Day offering will include signature treatments focused on rest and balance. Guests will also have access to holistic sessions led by visiting practitioner Dr Afsana Aradhana Ghyas, whose work focuses on integrative wellbeing and emotional balance.
Dining experiences will form a central part of the programme. These will include floating breakfasts served in private villas, interactive cooking sessions with the resort’s chefs, and private dining experiences ranging from sunset beach dinners to sandbank dining under the stars.
The resort will also offer family-focused activities for the occasion. These will include craft sessions for children, ocean-inspired guided art activities and a family photoshoot intended to capture the day’s experiences.
Through the Mother’s Day programme, InterContinental Maldives Maamunagau Resort is presenting a combination of wellness, dining and family activities shaped around personal and shared experiences in a resort setting.
W Maldives has launched The Wavemaker Edit, a new ongoing series of curated collaborations with international talent, aimed at introducing a range of guest experiences across mixology, wellness, cuisine and music.
The series is designed as a rotating programme, with each edition bringing a different creative perspective to the resort. According to W Maldives, the initiative is intended to create a continuing calendar of experiences that combine social, cultural and wellness-led elements.
The first edition of The Wavemaker Edit will run from 3 to 14 June 2026 and will feature two themed chapters, titled Island Alchemy and The Restore Ritual.
Island Alchemy will focus on mixology. On 3 June, Kwok will lead a guest shift at SIP, presenting three cocktails that explore contrast and balance, including a bespoke creation inspired by the Maldives. The collaboration will continue on 6 June at WET Deck, where a poolside day party will feature a curated cocktail menu.
The second chapter, The Restore Ritual, will centre on wellness and movement in recognition of Global Wellness Day. Led by Mumbai-based yoga and movement educator Samiksha Shetty, the programme will include sessions focused on breathwork, mindfulness and alignment-based practice.
The wellness programme will include Sunset Yoga sessions at FIRE Beach on 12 and 14 June, as well as a morning meditation session at AWAY Spa on 13 June. The main event within this chapter will take place on 13 June, when guests will be able to join a Sunset Yoga session aboard the Horizon Yacht. This bookable experience will also include healthy refreshments and a 60-minute massage at AWAY Spa.
W Maldives said future editions of The Wavemaker Edit will expand into culinary, music and art-led experiences under a number of themed series, including Flavors Unscripted, Sound Wave and Make A Scene.
Commenting on the launch, General Manager Amila Handunwala said the initiative reflects the resort’s approach to continuously evolving the guest experience through collaborations with international talent.
W Maldives is positioning the series as part of its broader effort to offer more structured and experience-led programming for guests. In addition, the resort is promoting its Original Wavemaker package, which includes seaplane transfers and a half-board meal plan for two adults with a minimum stay of four nights.
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