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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
RAAYA by Atmosphere has received its latest recognition at the Travel Time Awards, held in Moscow in August 2026, where the island resort was named “The Best Family Resort in the Maldives 2025”.
The award marks RAAYA’s second consecutive recognition from Travel Time, following its win as “Opening of the Year 2024”.
The recognition reflects the resort’s growing presence in the Russian travel market and its approach to family holidays in the Maldives, with a focus on shared experiences, exploration and activities designed for guests across generations.
Located on a private island in Raa Atoll, RAAYA is centred around the fictional story of Seb, a shipwrecked artist and adventurer whose narrative is incorporated throughout the resort experience. Guests can take part in island exploration, creative activities and ocean-based experiences, alongside family-oriented facilities and a range of dining options under The RAAYA Plan™.
The award was also presented during a visit to the resort by Russian film actress Katerina Shpitsa, known for productions including “Metro”, “The Crew” and “Poddubny”. During her stay, Shpitsa presented the Travel Time Awards 2025 accolade to RAAYA by Atmosphere General Manager Mario Stanic.
“Receiving this recognition for a second consecutive year is a proud moment for everyone at RAAYA,” Stanic said. “Winning the Travel Time Award 2025 for Best Family Resort is a wonderful recognition of what we stand for — bringing families together through shared experiences and lasting memories within a backdrop of a tropical island paradise.
“We are proud to create experiences that resonate with Russian families and families from around the world, offering a place to connect, discover and create memories together. We thank the awards team, our partners and our guests for their continued trust and support.”
The award adds to the international recognition received by RAAYA by Atmosphere since the resort opened in July 2024. The property has positioned its offering around experiential hospitality, design, family-focused programming and its castaway-inspired narrative.
RAAYA features 167 beach and overwater villas, a collection of dining venues and a range of land and ocean activities within its Raa Atoll setting.
With two Travel Time Awards in consecutive years, the resort continues to develop its position within the family travel segment in the Maldives.
Sun Siyam Olhuveli Maldives will welcome award-winning food creator Kabita Singh, the personality behind Kabita’s Kitchen, for a special culinary residency in October to mark International Chefs’ Day on 20 October 2026.
Known for making everyday Indian cooking accessible to a wide audience, Singh will move from her digital kitchen to the Maldives, joining the resort’s culinary team for a live cooking experience created for guests.
The collaboration will bring together Singh’s approach to Indian cuisine — centred on familiar flavours, accessible recipes and an increasing focus on wholesome cooking — with Sun Siyam’s Plant Based Bliss philosophy, which promotes the nutritional and holistic benefits of plant-forward dining.
As part of the International Chefs’ Day celebrations, Singh will cook alongside Sun Siyam Olhuveli’s culinary team during a live session in front of resort guests. The experience will feature a specially curated selection of vegetarian, vegan and health-conscious dishes developed in collaboration with the resort’s chefs and inspired by Singh’s own cooking philosophy.
Guests will have the opportunity to watch Singh prepare the dishes, learn about the techniques and stories behind them, and sample her interpretation of plant-forward Indian cuisine in a Maldivian island setting.
Kabita’s Kitchen has grown from a home-cooking channel into one of India’s most widely followed food platforms, with approximately 14.6 million subscribers on YouTube alone. Singh has built her audience through content ranging from regional favourites and vegetarian staples to festive dishes, street-food classics and everyday family recipes.
Her influence within India’s food and digital content sector was recognised at the inaugural National Creators Award in 2024, where she received the Best Creator in Food Category award, presented by Indian Prime Minister Narendra Modi.
“We are really excited to welcome Kabita to Olhuveli and bring a taste of Kabita’s Kitchen to the Maldives,” said Hassan Adil, General Manager of Sun Siyam Olhuveli.
“Food is such an important part of the way people connect, and this is about bringing our guests closer to the experience, watching Kabita cook, discovering the flavours and stories behind her dishes, and of course tasting them together. Her fresh, approachable style is a great match for our Plant Based Bliss philosophy, and celebrating International Chefs’ Day together with our own culinary team makes it even more special. We want dining at Olhuveli to be fun, social and full of moments that guests remember long after they leave the island.”
Located in South Malé Atoll, Sun Siyam Olhuveli is part of Sun Siyam’s Lifestyle Collection. The resort combines beach experiences, dining, entertainment, wellness and other activities within its broader island offering.
You & Me Maldives has been named Best Adults-Only Resort at the Travel Trade Maldives (TTM) Awards 2026, recognising the resort’s positioning, guest experiences and continued focus on adults-only hospitality in the Maldives.
The award was presented during the TTM Awards & Gala 2026, held at CROSSROADS Maldives on 27 August 2026, marking the conclusion of the 10th edition of TTM Maldives. The annual awards recognise achievements, innovation and contributions across the Maldivian tourism industry.
Located in Raa Atoll, You & Me Maldives has established itself as an adults-only retreat catering to couples, honeymooners, friends and solo travellers seeking privacy and tranquillity.
The resort combines its island setting with accommodation, personalised service and experiences centred on romance, wellness, gastronomy and exploration, creating an intimate environment designed specifically for adult travellers.
The recognition comes as You & Me Maldives marks seven years of operations and welcoming guests from around the world.
“As we celebrate this important milestone, we are deeply grateful to our loyal guests, partners, and dedicated team members who have been part of this journey,” said Mohamed Imthiyaz, General Manager of You & Me Maldives.
“These seven years represent not only growth and success, but countless love stories, memories, and unforgettable experiences created on our island. Receiving the ‘Best Adults-Only Resort’ award at the TTM Awards is a tremendous honour and a reflection of the passion and dedication of our entire team.”
The Best Adults-Only Resort award further strengthens You & Me Maldives’ position within the Maldives’ luxury hospitality sector, recognising its focus on combining an adults-only concept with personalised service and island experiences.
Looking ahead, You & Me Maldives plans to continue developing its concept and guest experience through new activities, offerings and services, while maintaining its focus on the adults-only luxury segment in the Maldives.
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