Featured
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
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Niyama Private Islands enhances surf lifestyle with stylish new surf venue
Niyama Private Islands Maldives now offers what is considered the most luxurious surf experience in the Maldives, enhanced by the introduction of its new Surf Shack — a stylish beachfront hangout serving gourmet bites, drinks, sunset views and lively parties.
Known as Nature’s Playground, the resort has long attracted surf professionals from around the globe. Located in the southern Maldives, where swells are at their strongest, it is a preferred base during peak surf season. Waves break directly on shore, with additional surf spots accessible within minutes by speedboat.
Niyama’s signature waves roll in at Vodi Point, situated on the westernmost tip of its twin islands. It is here that the resort has unveiled the new Surf Shack, designed to make time off the waves equally appealing. The thatched-roof venue encourages a barefoot, relaxed atmosphere, offering an upper deck for sunset viewing and picnic-style seating below. Reflecting Niyama’s sustainability ethos, Area Chief of Engineering Michael Patrick Slevin notes that 75 per cent of construction materials were repurposed, blending beach casual with environmentally conscious design.
Guests can enjoy gourmet dishes served from service windows, with a menu inspired by iconic surf destinations worldwide: Australian fish and chips, Indonesian satay, Mexican nachos and Japanese takoyaki. The drinks list pays tribute to rum, featuring an extensive collection and signature cocktails inspired by renowned surf breaks.
While the Surf Shack maintains a laidback feel during the day, the beachfront transforms at dusk as the tides shift and the DJ elevates the atmosphere. The resort’s rum and reggae Sundays have already become a celebrated weekly event.
Surfers at Niyama can design their days as they wish — chasing waves or relaxing ashore. The Surf Centre offers equipment and guidance, while Drift by Niyama provides recovery treatments to soothe muscles, repair sun-exposed skin and restore energy. Resident professional surfers remain available to advise on technique and wave conditions.
“The new Surf Shack forms part of the renewed Niyama experience, which includes significant refurbishments across the resort, inventive culinary additions and a greater emphasis on active living and wellness,” said Hafidh Al Busaidy, General Manager of Niyama Private Islands Maldives. “With more developments on the way, we look forward to sharing what comes next.”
Featured
Intimate island experiences shape Valentine’s Day at InterContinental Maldives Maamunagau Resort
This Valentine’s Day, InterContinental Maldives Maamunagau Resort invites couples to celebrate love through a collection of carefully curated experiences designed to unfold in intimate moments across the island.
Framed by the natural beauty of Maamunagau Island, the resort’s Valentine’s programme centres on a series of limited-edition dining and wellness experiences created exclusively for the occasion. From private beachfront dining and moonlit dinners along Café Umi Beach to an elevated Valentine’s evening at the signature Lighthouse venue, romance is conveyed through setting, atmosphere and thoughtful detail rather than elaborate gestures.
Culinary experiences sit at the heart of the celebration, with bespoke Valentine’s menus intended to be savoured slowly, paired with curated wines and accompanied by uninterrupted ocean views. Each dining experience is crafted to feel personal, whether enjoyed beneath the night sky or in one of the island’s more private spaces.
Beyond dining, couples are encouraged to reconnect through shared wellness experiences at AVI Spa. Signature rituals and indulgent treatments offer a quieter expression of romance, giving guests the opportunity to unwind together in a calm, oceanfront environment. Those seeking complete privacy may opt for bespoke in-villa treatments, allowing the occasion to be marked within the comfort of their own surroundings.
Throughout Valentine’s Day, subtle touches across the resort—from crafted cocktails to curated wine moments—enhance the celebration without overwhelming it, reflecting InterContinental Maldives’ belief that genuine luxury is rooted in balance, intention and authenticity.
At InterContinental Maldives Maamunagau Resort, Valentine’s Day is shaped not by excess, but by considered, enduring moments that create shared memories long after the day has passed.
Awards
Holiday Inn Resort Kandooma secures prestigious Green Globe Certification
Holiday Inn Resort Kandooma Maldives has announced that it has successfully achieved Green Globe Certification, following an independent audit conducted after a focused six-month programme. Officially awarded on 23 December 2025, the resort attained an 86 per cent compliance score, marking an important step in its ongoing sustainability efforts.
Green Globe Certification is recognised as one of the world’s leading sustainability standards for the tourism sector. To be certified, organisations must demonstrate verified compliance with more than 40 criteria covering environmental stewardship, social responsibility, cultural heritage and sustainable management. The process prioritises transparency, measurable progress and continuous improvement, making the certification a notable accomplishment within the global hospitality industry.
General Manager Mark Eletr noted that the result reflects both strategic intent and collective commitment across the resort.
He stated: “We are very pleased with this achievement and with the steps taken to prioritise sustainability at Kandooma. That focus was evident from the outset through the expansion of two key roles within the team, ensuring sustainability leadership and accountability were firmly in place.”
As part of this approach, the resort introduced a combined Sustainability Officer and General Manager’s Executive Assistant role to lead operational implementation, supported by enhanced strategic guidance from the Director of Marketing, who recently completed tertiary studies with a strong sustainability focus.
Mark Eletr added: “An Executive Assistant role is traditionally heavily administrative. By streamlining my own processes and integrating AI tools to improve efficiency, we were able to redesign the role to place sustainability at its centre. Broadening our Director of Marketing’s remit has further strengthened strategic direction by adding genuine expertise and commitment. With both positions reporting directly to me, sustainability is clearly elevated across the resort, and the structure has proven highly effective.”
He also highlighted that the certification journey itself has been one of the most valuable outcomes.
“This was a whole-resort effort. It required commitment, collaboration and a shared vision for Kandooma’s long-term direction. We have now established strong policies, processes and measurement frameworks that will endure beyond the current leadership team, forming a key part of our annual planning cycle.”
The certification aligns closely with IHG Hotels & Resorts’ Journey to Tomorrow framework, the group’s global sustainability strategy centred on people, communities and the planet. It sets targets related to carbon reduction, water stewardship, waste management, responsible sourcing and community impact across IHG’s worldwide portfolio.
With an 86 per cent score against Green Globe’s criteria, Holiday Inn Resort Kandooma Maldives demonstrated strong performance in areas such as energy and water efficiency, waste reduction and recycling, marine ecosystem protection, responsible procurement, colleague wellbeing and community engagement. Initiatives including coral conservation, marine education, colleague sustainability training and newly introduced guest sustainability pledges highlight the resort’s integrated approach to responsible tourism.
Reflecting on the process, Mark Eletr said: “The past few months have been challenging, but the outcome has been worthwhile. This certification gives us a clear improvement plan and a roadmap for the future. We did not want a symbolic certification—we chose Green Globe because it is rigorous and evidence-based. Some said it would be too difficult, which is exactly why we pursued it. We wanted a standard that pushes us to improve, now and in the years ahead.”
Green Globe Certification provides an ongoing framework to support continuous improvement, ensuring the resort evolves its sustainability practices year after year. Holiday Inn Resort Kandooma Maldives remains committed to advancing responsible tourism, encouraging guests to make sustainable choices, and contributing positively to the protection of the Maldives’ natural and cultural heritage.
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