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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
Cinnamon Hotels & Resorts Maldives has introduced a summer offer aimed at travellers seeking longer stays across its four island resorts.
Guests booking stays of seven nights or more will receive complimentary return transfers for two people, while shorter stays will include complimentary one-way transfers. At participating resorts, up to two children under the age of 12 can also stay and dine free.
The offer includes savings on selected excursions and activities and is available for bookings and stays until 31 October 2026.
Guests who book directly through Cinnamon Hotels & Resorts Maldives will have access to additional benefits, including options to personalise their stays with beach dining, spa treatments and island activities. Members of the brand’s loyalty programme will receive further savings and earn double Discovery Dollars during the promotional period.
Cinnamon Dhonveli Maldives offers beachfront accommodation, a range of activities and speedboat transfers from Malé. Its accommodation and family-focused programmes are designed for guests seeking a combination of recreation and time together.
Cinnamon Velifushi Maldives provides accommodation, dining options, wellness services and water-based activities within an island setting. The resort caters to couples, families and travellers visiting the Maldives for the first time.
Cinnamon Hakuraa Huraa Maldives, located across two islands in Meemu Atoll, is positioned for couples and honeymooners. Guest experiences include sunset dining, spa treatments and access to the surrounding lagoon.
Ellaidhoo Maldives by Cinnamon caters to divers and snorkellers through its house reef, marine life and access to dive sites. The resort provides direct access to underwater experiences in the Indian Ocean.
The summer offer provides savings of up to 65% across Cinnamon Hotels & Resorts Maldives’ four properties.
JOALI Maldives has been recognised in two categories at the Travel + Leisure Luxury Awards Asia 2026, receiving honours among the Best Resorts in the Maldives and for the Most Outrageous Villa.
The recognition reflects the resort’s Creative Living philosophy, which brings together art, nature, wellbeing, sustainability and hospitality within the guest experience.
Located in Raa Atoll, approximately 45 minutes by seaplane from Malé, JOALI Maldives opened as the Maldives’ first art-immersive luxury resort. Art installations, dining experiences, wellbeing programmes and accommodation are integrated across the island as part of its approach to resort living.
The property features 73 beach and overwater villas and residences, positioned across the island and above the Indian Ocean. The accommodation has been designed to provide privacy, space and access to views of the surrounding environment.
Each villa combines contemporary design with materials including timber, marble, bamboo and terrazzo, as well as handcrafted finishes. Floor-to-ceiling glass provides views of the ocean, while private pools connect the indoor and outdoor spaces.
Artworks and design pieces are also incorporated into each villa, reflecting the resort’s Creative Living concept and extending the art experience into the accommodation.
Guests can choose from Beach Villas, Water Villas and multi-bedroom Residences, with options designed for couples, families and groups. The larger residences provide additional living areas, pools and facilities for guests seeking more space and privacy.
Each villa is supported by a dedicated Jadugar, a term used by the resort to describe its butler service. The Jadugar assists guests throughout their stay by arranging dining experiences, island activities, celebrations and other personalised services.
Guests are also provided with bicycles to explore the island’s pathways, gardens and viewpoints.
JOALI Maldives said the awards reflected the work of its team and the support of its guests, partners and wider community. The resort also said it would continue developing experiences focused on creativity, wellbeing and connection.
The recognition adds to JOALI Maldives’ position within the Maldives’ luxury resort sector, where its art-led design and Creative Living philosophy form the basis of its guest experience.
Lily Beach Resort & Spa has announced a culinary collaboration with Chef Grégoire Berger, chef and co-owner of the Dubai restaurant Kraken.
Known for progressive French cuisine influenced by the ocean, Berger has received a Michelin star in the Michelin Guide Dubai from 2022 to 2024. His restaurant has also been included among the World’s 50 Best Restaurants, while his work has received recognition through several international culinary awards.
Berger’s approach draws on the sea as a source of ingredients, ideas and presentation. His menus combine French culinary techniques with marine influences, with each dish developed around a narrative connected to the ocean.
As part of his visit to Lily Beach in August 2026, Berger will host a fine-dining dinner for a limited number of guests. He will also introduce a signature dish at AQVA Bar & Restaurant during the collaboration.
The programme forms part of Lily Beach’s efforts to expand its culinary offering and introduce visiting chefs and dining concepts to guests in the Maldives.
Located in South Ari Atoll, the resort will provide guests with an opportunity to experience Berger’s cuisine within its all-inclusive hospitality concept. The collaboration will combine his Michelin-recognised approach with the resort’s existing food and beverage programme.
Lily Beach Resort & Spa has established its hospitality offering around its premium all-inclusive model, supported by a range of dining venues. Its restaurants offer overwater dining, international buffet selections, seafood and Asian-inspired dishes.
The resort’s culinary programme is supported by the Platinum Plan, an all-inclusive package that includes dining experiences, a selection of wines and spirits, excursions and personalised services.
Through the collaboration with Berger, Lily Beach aims to add another dining experience to its guest programme while continuing to develop its position within the Maldives’ luxury hospitality market.
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