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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
InterContinental Maldives Maamunagau Resort has been nominated in the “Resort” category of the Condé Nast Traveler Readers’ Choice Awards 2026, one of the travel industry’s recognised measures of guest preference and brand standing.
Located in Raa Atoll, the resort is continuing to build its profile through its all-Club concept, service model and guest experiences shaped by both location and programme. As the Maldives’ first all-Club InterContinental resort, the property includes a set of signature benefits with each stay, including daily breakfast, afternoon tea and evening aperitif.
The resort features 81 beach, lagoon and overwater villas and residences, along with seven restaurants and bars. Its guest offering combines private accommodation with a range of tailored experiences, including manta ray encounters in the Maamunagau lagoon, customised Dining by Design experiences, visiting wellness practitioners and its Artist in Residence programme.
InterContinental Maldives Maamunagau Resort is also positioned to serve both couples and families, through its family offering and adults-only Retreat enclave.
The nomination reflects continued recognition for a resort that combines service, experience-led programming and a natural setting within one of the Maldives’ established tourism atolls.
The Westin Maldives Miriandhoo Resort has introduced its Family Fun Summer offer, aimed at families seeking longer island stays built around shared activities and rest. The offer is available for booking from 15 April to 15 June 2026, with a minimum stay of four nights for travel through to 20 December 2026.
Located within Baa Atoll, the Maldives’ first UNESCO Biosphere Reserve, The Westin Maldives Miriandhoo Resort is positioning the offer around family wellness, marine experiences and time spent together in a natural island setting. Seasonal snorkelling with manta rays in Hanifaru Bay remains one of the area’s key attractions, while the resort’s collection of beach and overwater villas is designed to accommodate families looking for space and flexibility during their stay.
For larger families and groups, the resort also offers the two-bedroom Heavenly Beach Residence, which includes a living room, kitchen and dining area intended to support longer and more relaxed island stays.
The resort says the guest experience can be shaped around both activity and downtime, supported by Westin’s Sleep Well concept and Heavenly Bed. Children have access to the Westin Family Kids Club, which includes a children’s pool and pirate ship, while parents can make use of Heavenly Spa by Westin.
Away from the villa, the resort is also promoting shared family experiences through Good Travel with Marriott Bonvoy activities focused on the culture and environment of Baa Atoll. These include traditional lacquer craft workshops, visits to local islands and guided marine activities in surrounding waters.
The Family Fun Summer package includes three meals per day, with children under 12 dining free of charge. It also includes a one-time dolphin cruise for two adults and two children, a 30-minute photography session with one printed photo, and a USD 150 resort credit.
Reethi Faru Resort has been recognised at the 2026 Haute Grandeur Global Excellence Awards, receiving honours in four categories: Best Beach Villa in Indian Ocean, Best Pool Villa in Indian Ocean, Best Eco-Friendly Resort in Maldives, and Best Sustainable Hotel in Maldives.
The awards recognise performance across villa accommodation and environmentally focused hospitality, reflecting the resort’s emphasis on guest experience alongside sustainability and environmental stewardship.
According to the resort, the recognition supports its positioning within the Maldives market as a property that combines natural surroundings, accommodation standards and responsible hospitality practices.
Located on Filaidhoo in Raa Atoll, Reethi Faru Resort features 145 villas, including beachfront and overwater accommodation designed in a style that combines Maldivian elements with contemporary comfort.
The resort’s food and beverage offering includes six restaurants and six bars, while its leisure facilities cover watersports, diving, yoga, spa treatments and fitness activities. Surrounded by coral reefs, the resort also offers guests access to marine-based experiences in the Indian Ocean.
Sustainability remains a central part of the resort’s operations, with initiatives that include coral reef restoration and guest experiences linked to environmental awareness.
Through its recognition at the 2026 Haute Grandeur Global Excellence Awards, Reethi Faru Resort has added to its profile as a Maldives resort with a focus on both accommodation standards and sustainability.
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