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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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Cinnamon Hotels & Resorts earns top honours at 2025 Traveller Review Awards

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Delivering unforgettable travel experiences remains at the heart of hospitality, and Cinnamon Hotels & Resorts in the Maldives has once again been recognised for its commitment to excellence at the Booking.com Traveller Review Awards 2025. Now in its 13th year, the awards are based on over 360 million verified guest reviews, reflecting traveler experiences. As a homegrown brand from Sri Lanka, Cinnamon Hotels & Resorts continues to redefine hospitality in the Maldives with its collection of tropical sanctuaries.

With a rating of 9.3, Cinnamon Hakuraa Huraa Maldives continues to captivate travellers seeking an idyllic island retreat in the Meemu Atoll. This island serves as the perfect getaway for couples seeking ultimate relaxation and escape, while the exclusive 18+ Platinum Island provides an adults-only haven. The Platinum Beach Bungalows offer undisturbed tranquility for those desiring a true escape from the world. The resort’s chic overwater bungalows, complete with glass floors revealing the wonders beneath and private terraces with hammocks, provide an intimate and serene retreat, ideal for honeymooners.

Also earning a rating of 9.3, Cinnamon Velifushi Maldives stands out for its contemporary design, resembling the shape of a manta ray. Vaavu Atoll, the least commercialised atoll in the Maldives, offers quiet beaches and empty dive sites, giving guests the opportunity to experience untouched beauty. The shipwreck at Vaavu Atoll is a popular diving destination, home to a variety of marine life, including fish, corals, and other invertebrates. With a combination of thrilling water sports and laid-back island vibes, Cinnamon Velifushi Maldives serves as a perfect choice for travellers seeking both excitement and relaxation.

Receiving a rating of 9.0, Cinnamon Dhonveli Maldives remains one of the most sought-after destinations in the Maldives, particularly among surfers and ocean lovers. Located just a 20-minute speedboat ride from Malé, the resort is home to the world-renowned Pasta Point, one of the most consistent surf breaks in the region. The island’s lively atmosphere, diverse recreational offerings, and welcoming hospitality make it ideal for families, featuring a dedicated children’s play area that provides a safe and engaging space for fun-filled activities. Whether traveling as a couple, a family, or a group of friends, the resort offers a perfect balance of adventure, relaxation, and unforgettable memories.

With a rating of 8.9, Ellaidhoo Maldives by Cinnamon is recognised as a diver’s paradise, celebrated for its legendary house reef and year-round diving opportunities. Located in the North Ari Atoll, the resort offers one of the best house reefs in the Maldives, attracting diving enthusiasts eager to explore its rich marine biodiversity. The rustic charm of Ellaidhoo, combined with its commitment to marine conservation, provides an authentic island experience where guests can disconnect from the world and reconnect with nature. Whether diving with reef sharks, enjoying beachside dining, or simply soaking in the island’s natural beauty, Ellaidhoo offers a distinctive retreat for underwater adventurers.

Marking the launch of an exciting summer offer, guests planning a Maldivian getaway for a minimum of four nights between May 1, 2025, and October 31, 2026, will receive complimentary speedboat transfers. Additionally, for an elevated travel experience, GHA Discovery membership offers even greater rewards and exclusive benefits. From the moment guests sign up, they can earn and redeem Discovery Dollars (D$), access member-only rates, and enjoy carefully curated local experiences. With privileges available at every membership level, GHA Discovery enhances each stay by offering recognition and unique opportunities to explore the destination in an immersive way.

Combining the warmth of Sri Lankan hospitality with the natural beauty of the Maldives, Cinnamon Hotels & Resorts in the Maldives continues to offer the perfect blend of relaxation and discovery.

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OZEN LIFE MAADHOO earns Green Globe Gold Certification

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THE OZEN COLLECTION has announced that OZEN LIFE MAADHOO has been awarded the Green Globe Gold Certification after maintaining certification for five consecutive years. This prestigious recognition highlights the resort’s unwavering commitment to environmental stewardship, seamlessly integrating world-class luxury with innovative sustainability practices to protect the delicate ecosystems of the Maldives.

At the heart of OZEN LIFE MAADHOO’s achievements lies a comprehensive approach to conservation. The resort’s team of in-house marine biologists leads a coral restoration project aimed at revitalising a 300-meter section of the house reef. This initiative employs 80 coral frames supporting over 2,000 coral fragments. Collaborations with organisations such as Manta Trust, Olive Ridley Project, and Parley, along with an upcoming partnership with Miyaru NGO, strengthen marine protection efforts while guest education programs enhance awareness of ocean conservation.

According to Nuria Camps Suarez, Head Marine Biologist at OZEN LIFE MAADHOO, the coral restoration project represents more than just conservation—it symbolises a commitment to future generations. By restoring the house reef, the resort is actively rebuilding a thriving ecosystem. Partnerships with organisations such as Manta Trust and Parley further amplify the impact, ensuring the preservation of the Maldives’ marine heritage.

The resort also integrates renewable energy solutions, featuring one of the Maldives’ largest floating solar panel systems. This system comprises twelve platforms with 720 panels, supplemented by 1,095 rooftop solar units, collectively generating 30% of the island’s energy requirements and significantly reducing dependence on fossil fuels.

OZEN LIFE MAADHOO’s dedication to a zero-waste philosophy is reflected in its advanced waste management systems. A fully automated organic composter processes three tons of green waste weekly, converting it into nutrient-rich fertiliser, while in-vessel shredders transform garden clippings into compost. Additionally, glass bottles are crushed and repurposed for minor construction projects.

Sustainable dining is also a cornerstone of the resort’s eco-conscious approach. The hydroponic farm enhances gastronomy by growing lettuce and herbs in a soilless system, reducing water consumption from 250 litres to just 50 litres per kilogram. This method meets 70% of the island’s lettuce demand while providing fresh, organic ingredients to its award-winning restaurants.

These sustainability initiatives are seamlessly incorporated into the guest experience, allowing visitors to enjoy bespoke activities such as snorkelling among regenerated reefs and savouring produce from the hydroponic farm—ensuring luxury and environmental responsibility go hand in hand. As OZEN LIFE MAADHOO continues to lead in eco-conscious hospitality, it reinforces THE OZEN COLLECTION’s ethos of ‘Refined Elegance,’ where each stay contributes positively to the planet.

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Experience elegance and serenity at Coco Bodu Hithi’s exclusive Coco Residences

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Coco Bodu Hithi, a hospitality resort owned by Maldivians, is renowned for its sleek design and comfort. The resort features expansive 184-square-metre residences, each equipped with a private pool, offering elevated privileges to guests across 24 exclusive Coco Residences.

Suspended above the crystal-clear lagoon, these overwater villas provide a private sanctuary, surrounded by endless shades of blue and uninterrupted views of the Indian Ocean. Recognised for its outstanding hospitality, Coco Bodu Hithi was awarded the title of Best Service Resort at the Condé Nast Johansens Awards for Excellence 2025. From the moment guests arrive, they are welcomed with a refreshing Kurumba and a basket of tropical fruits, while the resort ensures seamless and attentive service throughout their stay.

Guests staying in Coco Residences benefit from a range of exclusive privileges, including the dedicated service of a Mithuru, who ensures a smooth and personalised Maldivian experience. These privileges include an Executive Champagne Sunset Cruise, a Cocktail Party, and a Guided Wine Tasting with the Resident Sommelier, along with other unforgettable experiences that showcase the breathtaking turquoise waters and endless horizon.

For environmentally conscious and culturally curious travellers, the resort offers a variety of enriching activities. Visitors can participate in Coral Planting and other tailored initiatives with the resident Marine Biologist or experience the excitement of a Boduberu performance on the island.

To further enhance the guest experience, the package includes complimentary breakfast options, ranging from a dine-around breakfast to an in-villa Floating Breakfast, complete with a photographer for a keepsake. Guests also receive a daily replenished minibar stocked with beers and soft drinks, along with special residence bar benefits.

Wellness plays an integral role in the resort’s offerings, allowing guests to embark on a journey of balance, rejuvenation, and inner harmony through daily sunrise or sunset yoga sessions. Additionally, visitors can indulge in relaxation with the resort’s signature Coco Fusion Massage or a soothing Balinese Massage, both designed for deep rejuvenation.

Coco Bodu Hithi seamlessly combines adventure and exclusivity, offering captivating dive sessions, exhilarating water sports, and thoughtfully curated signature experiences. The resort has also welcomed high-profile celebrities, ensuring unforgettable stays in the Maldives.

For those looking to experience the ultimate getaway, the Coco Summer Escape offer provides a 40% discount along with a complimentary meal plan upgrade, allowing for an even more indulgent stay at Coco Bodu Hithi.

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