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The importance of pricing strategies in the hospitality industry

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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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Noku Maldives unveils long-term Sea Turtle Conservation Programme

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Noku Maldives, Vignette Collection, has announced the launch of a dedicated Sea Turtle Conservation Programme, developed in partnership with the Atoll Marine Conservation Centre (AMCC). Beginning on 25 November 2025, this long-term initiative strengthens the resort’s commitment to the Vignette Collection pillar Means for Good, reflecting a considered approach to environmental stewardship and responsible hospitality.

The waters surrounding Noku Maldives support a naturally thriving ecosystem, characterised by extensive seagrass meadows, coral-rich shallows, and warm lagoons that provide an essential refuge for sea turtles. In recent years, the island has recorded multiple nesting events along its shores — a rare and significant indicator of the health of its marine environment. The new programme aims to safeguard and enhance this natural heritage.

As part of the collaboration, a full-time AMCC marine biologist will be stationed on the island to lead a comprehensive portfolio of conservation activities. This will include monitoring the local sea turtle population, assessing reef and coral health, supporting long-term scientific research, and conducting fieldwork and outreach initiatives across neighbouring islands.

The programme will also enhance guest engagement through educational talks, guided snorkelling experiences, and hands-on conservation workshops, offering visitors the opportunity to connect with the underwater world in an enriching and meaningful way.

The initiative complements Noku Maldives’ growing suite of Means for Good activities, which already include reef conservation studies, coral restoration projects, cultural experiences, and community-led programmes. Together, these efforts underpin the resort’s commitment to delivering stays that are rooted in authenticity, responsibility, and deep respect for the natural environment.

“Our lagoon has always been a peaceful refuge for sea turtles and marine life,” said Hussain Shahid, General Manager of Noku Maldives. “This partnership with AMCC reflects our dedication to protecting these waters and ensuring they continue to flourish. By bringing conservation, community involvement, and guest education together, we hope to create meaningful and lasting impact for the atoll.”

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From spa rituals to sunrise yoga: Angsana Velavaru champions mindful living

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Surrounded by the crystal-clear waters of South Nilandhe Atoll, Angsana Velavaru invites guests to embark on a holistic journey of renewal that nurtures both body and mind.

At the centre of this experience is the award-winning Angsana Spa, inspired by the timeless essence of Asian wellness traditions. Here, the healing power of touch, scent, and nature come together in harmony. Guests can enjoy a range of treatments designed for both relaxation and family bonding, including restorative massages, revitalising body polishes, and signature rituals that incorporate natural ingredients such as coconut, honey, and tropical herbs. Each therapy aims to rejuvenate, soothe, and restore a deep sense of inner calm that reflects the island’s natural rhythm.

Wellness at Angsana Velavaru extends far beyond the spa. The resort’s approach to wellbeing embraces movement, mindfulness, and meaningful connection. Its modern tropical fitness centre provides a tranquil setting for guests to stay active while remaining close to nature. Activities such as aqua aerobics in the Kuredhi Pool and sunrise yoga on the beach combine physical vitality with mindful awareness.

Across the island, guests are encouraged to slow down and reconnect with their surroundings. Guided meditation, breathwork sessions, and sunset yoga create opportunities for reflection and relaxation. These practices are seamlessly woven into the resort’s environment, offering a sense of serenity that lingers long after the stay.

Under the guidance of Wellbeing Director Artemasius Harefa, Angsana Velavaru’s holistic programmes align with Banyan Group’s Eight Pillars of Wellbeing, with a focus on rest, movement, mindfulness, and connection. The result is a collection of experiences designed to inspire balance and renewal, giving guests the opportunity to embrace a more mindful way of living.

“Modern travellers seek more than rest; they seek renewal,” said Artemasius Harefa, Wellbeing Director at Angsana Velavaru. “Our goal is to create experiences that help guests reconnect with themselves and the natural world, turning wellness into a meaningful way of life.”

At Angsana Velavaru, wellbeing is not a moment but a continuous journey shaped by nature, connection, and the healing spirit of the Maldives.

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Trans Maldivian Airways named World’s Leading Seaplane Operator 2025

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Trans Maldivian Airways (TMA), the world’s largest seaplane operator, has once again strengthened its position as a global aviation leader with new accolades at the World Travel Awards 2025. The airline was named the World’s Leading Seaplane Operator 2025 and the Indian Ocean’s Leading Seaplane Operator 2025, acknowledging its continued contribution to air connectivity across the Maldives. The 32nd Annual World Travel Awards ceremony took place at Exhibition World Bahrain and was attended by more than 300 leaders from the international tourism industry.

Established in 1993, TMA has played a central role in shaping the Maldives’ aviation and tourism sectors. Operating the world’s largest seaplane fleet with 65 DHC-6 Twin Otters and serving over 80 resort destinations, the airline provides vital connectivity across the archipelago with a focus on safety, reliability, and operational efficiency. Conducting more than 400 flights daily, TMA remains essential in enabling access to resort islands nationwide.

Commenting on the achievement, A.U.M. Fawzy, CEO of Trans Maldivian Airways, said: “This prestigious recognition from the World Travel Awards, year after year, reflects the trust placed in our team by our partners and guests, and the responsibility we carry as the primary air service provider connecting resort destinations across the Maldives. At TMA, our focus remains on continuous improvement and building on decades of service excellence. As the tourism industry in the Maldives continues to evolve and grow, we will continue strengthening our operations and supporting the long-term development of the Maldives as a world-leading destination.”

TMA continues to enhance its operational capabilities through ongoing investments in fleet upgrades, infrastructure, staff training, and technology-driven improvements, ensuring it meets rising demand while maintaining its hallmark of dependable service.

As the Maldives prepares for further growth in visitor arrivals, Trans Maldivian Airways remains committed to working closely with industry partners, supporting national tourism objectives, and ensuring a seamless and reliable travel experience for guests visiting the country’s island destinations.

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