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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
Villa Nautica will embrace the festive spirit from 20 December 2025 to 6 January 2026, offering guests an easy island rhythm that flows from bright mornings by the water to music-filled evenings on the sand. The season begins with illuminated beaches and relaxed barbecues, gradually building through creative afternoons and live performances. Christmas Eve will feature a gala dinner, followed by Santa’s arrival on 25 December. The celebrations will culminate in a vibrant New Year’s Eve countdown with fireworks, before settling into a calm reset on New Year’s Day and concluding with Orthodox Christmas.
The programme balances practicality with a relaxed, unpretentious atmosphere. Mornings will bring sunrise yoga, family pool activities, and interactive cooking sessions, while evenings will feature poolside soirées, wine-paired dinners, and sunset cruises. With simple yet photogenic settings, the lagoon and sky take centre stage in shaping the mood. Guests—whether couples, friends, or families—can participate freely without losing the island’s easy pace.
For younger visitors, the festivities will centre around the kids’ club, where cookie and cupcake decorating, beach games, origami and craft sessions, storytelling, and cosy movie nights will take place. Small groups and attentive care ensure that creativity and play remain the focus, allowing parents to enjoy uninterrupted moments around the island.
A highlight of the season will be the Champagne Lucky Draw & Disco. From 1 to 31 December, each bottle of champagne purchased at resort bars or restaurants will serve as an entry to the draw. Guests are advised to keep their entry stubs for the live draw, held at 01:00 during the New Year’s celebration, where the prize will be a seven-night stay in a Water Villa for two.
Throughout the festive period, private experiences will feel as memorable as the larger celebrations. Guests may enjoy candlelit dinners on the sand, floating breakfasts, or early morning snorkelling sessions to begin the year anew. Whether seeking a lively shoreline celebration or a quiet evening stroll beneath lanterns and palms, Villa Nautica offers an atmosphere where every festive moment can glow in its own way.
JOALI BEING, the world’s first well-being island, has announced the launch of its new global brand campaign titled “Joyful Journeys of Well-Living.” The campaign celebrates the art of self-discovery, inviting travellers to reconnect with their inner selves through bespoke and transformative experiences.
Building upon JOALI BEING’s core philosophy of the “Joy of Weightlessness,” the campaign embodies the essence of harmony between mind, body, and spirit. It encourages guests to explore holistic pathways designed to restore balance and inspire personal growth.
Joyful Journeys of Well-Living serves as an invitation to travellers seeking meaningful change and renewal. The campaign narrates stories of individuals discovering joy through purposeful living, mindful connection, and immersive well-being experiences at JOALI BEING.
The visuals capture the island’s tranquil landscapes and nurturing spaces — from oceanfront sanctuaries to treetop villas and transformative healing sessions led by resident experts. The campaign presents JOALI BEING as more than a destination; it is a journey towards well-being, creativity, and self-transformation.
Each guest journey at JOALI BEING is founded on the resort’s Four Pillars of Well-Being — Mind, Skin, Microbiome, and Energy. Through tailored programmes, guests can embark on integrative wellness experiences encompassing sound therapy, movement and fitness, hydrotherapy, nutritional guidance, and energy-healing sessions curated by specialists.
The island features a series of advanced well-being spaces, including:
- CORE: a movement and fitness zone
- AREKA: a transformative treatment centre
- KAASHI: a hydrotherapy hall
- SEDA: a sound-healing room
- Ocean Sala: an open-air meditation and relaxation deck
Each space is designed to nurture a profound connection with nature and the self.
The Joyful Journeys of Well-Living campaign has been conceptualised and produced by JOALI BEING’s in-house team in collaboration with creative partners and visual storytellers from across the globe. The multi-platform campaign integrates film, digital, and print media to convey JOALI BEING’s ethos — a celebration of joy, transformation, and harmony.
The visual narrative draws inspiration from the natural beauty of the Maldives, reflecting JOALI BEING’s immersive design philosophy. The imagery captures the rhythm of the ocean, the play of light, and the flow of energy that define the spirit of the island.
Coco Bodu Hithi has been recognised on the global stage, winning Best Waterside Hotel (Riverside, Lakeside, Seaside) at the Condé Nast Johansens Awards for Excellence 2026, held on 3 November 2025 in the UK. It is the second consecutive year the resort has been honoured by the publication, following last year’s win for Best Service, reaffirming its focus on heartfelt Maldivian hospitality and refined island living.
Described by Condé Nast Johansens as an “over-water, over-indulgent Maldivian island outpost,” Coco Bodu Hithi offers an intimate retreat of comfort and calm. The resort’s 32 Water Villas and 24 Coco Residences, each measuring 184 square metres and featuring private pools, provide secluded spaces set above the lagoon, where nature, design, and comfort come together to reflect the island’s romantic ambience.
Known for contemporary design infused with Maldivian heritage, the resort continues to welcome travellers seeking time by the sea, complemented by culinary collaborations with celebrity and Michelin-starred chefs. The experience balances privacy and comfort throughout a guest’s stay. With turquoise waters, quiet spaces, and experiences designed for connection and shared discovery, the resort presents a considered take on island living.
Located 35 minutes by speedboat from Velana International Airport, the island combines accessibility with seclusion—close enough for convenience, yet removed for privacy and serenity. As part of Coco Collection, the resort offers bespoke experiences, attentive service, and sustainable practices, shaping stays that feel personal and reflective of relaxed, authentic island life.
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