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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
Cinnamon Hotels & Resorts Maldives has won three awards at the South Asian Travel Awards (SATA) 2026, with Cinnamon Dhonveli Maldives and Cinnamon Velifushi Maldives receiving recognition across three categories.
Cinnamon Dhonveli Maldives secured Gold in the Leading Surf Resort category for the eighth time and fourth consecutive year, while Cinnamon Velifushi Maldives retained Gold in the Leading Beach Resort category for the second consecutive year. Cinnamon Velifushi Maldives also received Silver in the Nishan Seneviratne Best CSR Programme category.
The 10th edition of SATA was held at Barceló Nasandhura Malé on 8 October 2026, recognising achievements across South Asia’s tourism and hospitality industry, including guest experiences, industry leadership and responsible tourism.
Located in North Malé Atoll, Cinnamon Dhonveli Maldives is home to the Pasta Point surf break, which attracts surfers from around the world. The resort’s eighth Gold award in the Leading Surf Resort category reflects its position among the Maldives’ surfing destinations. In addition to surfing, the resort offers water sports, wellness activities and other guest experiences.
“We remain committed to delivering memorable surf experiences and holidays in the Maldives,” said Marlon Robert, General Manager of Cinnamon Dhonveli Maldives.
Robert also acknowledged the continued support of guests, the international surfing community and the resort team in securing the recognition.
Cinnamon Velifushi Maldives received its second consecutive Gold award as Leading Beach Resort in recognition of its island setting, which features sandy beaches, a lagoon and a selection of beachfront and overwater accommodation. The resort also offers dining, wellness and recreational activities, providing guests with opportunities to explore the surrounding marine environment.
The resort’s Silver award in the Nishan Seneviratne Best CSR Programme category recognised its efforts to provide dive education and career development opportunities for young people from neighbouring island communities.
Implemented in partnership with Dive & Sail, the resort’s PADI-certified dive centre, the six-day programme enabled nine students aged between 16 and 18 from schools in Keyodhoo and Felidhoo to obtain PADI Open Water Diver certification.
The programme combined theoretical lessons, practical training and supervised dives to promote safe diving practices and reef conservation. It also introduced participants to potential career opportunities in marine tourism.
“These accolades reflect the dedication of our teams and the continued support of our guests, whose trust inspires us to keep raising the standard of our experiences,” said Sanjeeva Perera, Area General Manager, Cinnamon Maldives Resorts.
The three awards recognise the tourism experiences offered by Cinnamon Dhonveli Maldives and Cinnamon Velifushi Maldives, as well as Cinnamon Hotels & Resorts’ initiatives in environmental awareness and community engagement across its Maldives properties.
ELE|NA has been named Leading Wellness and Spa Brand at the South Asian Travel Awards (SATA) 2026, recognising the Maldives-based wellness brand’s contributions to the hospitality and wellness industry across the region.
The recognition comes as wellness continues to become an integral part of luxury hospitality, with ELE|NA working alongside resort partners to develop and operate wellness facilities that combine therapeutic experiences, trained professionals and operational expertise.
Guided by its Wellness Your Way™ philosophy, ELE|NA incorporates wellness into different aspects of the guest experience. Its six Pillars of Vitality – TouchFlow, ReFine, BodyFit, SoulVibe, SleepSync and FoodDelight – encompass therapeutic treatments, physical activity, emotional wellbeing, restorative sleep and nutrition. The framework allows individual resorts to develop wellness programmes tailored to their locations and guest preferences.
In addition to providing wellness experiences, ELE|NA works with hospitality partners on concept development, spa operations, therapist training and service delivery. Its operational model combines the individual characteristics of each resort with standardised systems and procedures aimed at maintaining service consistency across its properties.
Sustainability also forms part of the brand’s operations. All ELE|NA properties in the Maldives have received Platinum Sustainable Wellness Accreditation, recognising their approach to responsible spa operations, environmental management and community wellbeing.
The brand also invests in professional development through the ELE|NA Wellness Academy, which provides training programmes for therapists and wellness professionals. The academy combines traditional therapeutic practices, practical training and contemporary wellness knowledge to support professional development and strengthen service standards across the industry.
The recognition at SATA 2026 comes as ELE|NA continues to expand its operations beyond the Maldives, extending its wellness concepts and services into India, Nepal and other emerging hospitality destinations.
With wellness increasingly influencing travellers’ accommodation choices and holiday experiences, ELE|NA continues to focus on integrating wellness services into resort operations while supporting the development of trained professionals and sustainable practices within the hospitality sector.
Milaidhoo Maldives is set to welcome award-winning chef James Knight-Paccheco, widely known as Chef JKP, on 11 and 12 December 2026 for two culinary events focusing on cooking techniques, culinary experiences and the exploration of new flavours.
On 11 December, Chef JKP will conduct a culinary workshop, offering guests the opportunity to cook alongside him, learn professional techniques and exchange ideas in the kitchen. The following evening, he will host a wine-pairing dinner featuring dishes prepared in his signature style, accompanied by wines selected by the resort’s resident sommelier to complement each course.
With more than 20 years of experience in the hospitality industry, Chef JKP has worked in Michelin-starred restaurants, luxury hotels and restaurant projects across the UK and the Middle East. Throughout his career, he has worked alongside renowned chefs including Raymond Blanc, Gordon Ramsay and Michael Caines. He is also the creator and host of The Chef JKP Podcast, which has recorded more than 6.5 million downloads.
At Milaidhoo Maldives, the culinary experience draws inspiration from the island’s surroundings, Maldivian flavours and traditional cooking methods, combined with international influences introduced by the resort’s team of chefs. This approach encourages the exchange of culinary knowledge and techniques, allowing guests to explore local dishes, learn new cooking methods and engage with the chefs responsible for their dining experiences.
Located within the Baa Atoll UNESCO Biosphere Reserve, Milaidhoo offers a setting where dining experiences focus on personalised service and interaction between guests and culinary professionals. Chef JKP’s visit is intended to provide guests with opportunities to engage directly with the visiting chef, gain insights into his approach to cooking and experience his culinary creations.
The culinary workshop will take place on 11 December 2026, followed by the wine-pairing dinner on 12 December 2026.
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