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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
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Chef Jake Norman and Molly O’Donoghue join Niva Dhigali for November programme
Niva Dhigali Maldives will welcome visiting chef Jake Norman and British pickleball champion Molly O’Donoghue for a curated programme of island experiences this November, bringing together dining and active wellbeing in the Maldives.
Norman began his culinary career making pizza in the markets of Guadalajara, Mexico, before working in several London restaurants, including St John, Ottolenghi and Sabor. He now leads the kitchen at Updown Farmhouse in Kent, where his cooking focuses on seasonal ingredients, live-fire techniques and Mediterranean influences.
On 18 November, Norman will host an exclusive dinner at Faru, presenting a menu that combines Mediterranean flavours with influences from Mexico and the Middle East, while incorporating ingredients sourced from the Maldives.
The shared dining experience will feature Indian Ocean produce, grilled dishes and smoky flavours, with a menu designed to reflect the setting and encourage guests to dine at a relaxed pace.
The programme will also include pickleball sessions hosted by British champion Molly O’Donoghue. A national champion in mixed and women’s doubles, as well as a European champion in mixed doubles, O’Donoghue first discovered the sport while studying in Australia. She has since competed internationally and worked to introduce the sport to players around the world.
At Niva Dhigali, O’Donoghue will conduct beginner sessions and advanced coaching, giving guests of different skill levels the opportunity to learn, play and develop their technique.
Located in Raa Atoll, Niva Dhigali Maldives is surrounded by tropical vegetation, a lagoon and the Indian Ocean. The November programme, featuring Norman’s dining experience and O’Donoghue’s pickleball sessions, forms part of the resort’s approach to offering guest experiences centred on food, wellbeing and the island environment.
Featured
Cinnamon Hotels & Resorts Maldives introduces summer offer across four island resorts
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.
Awards
JOALI Maldives wins two honours at Travel + Leisure Luxury Awards Asia
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.
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