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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
Amilla Maldives is inviting guests to mark Eid al-Fitr with a series of island celebrations under the theme Eid in Harmony, bringing together cultural experiences, family activities and festive dining.
Eid, which marks the end of the holy month of Ramadan, is widely celebrated across the Maldives as a time of gathering and shared moments. At Amilla Maldives, the occasion will be observed through a programme of relaxed events designed to reflect the atmosphere of island life and community.
During the celebrations, guests will be able to take part in cultural performances, family-friendly activities and island gatherings highlighting Maldivian traditions. These will include performances of Bodu Beru, interactive island games and creative workshops that offer visitors insight into local culture.
The resort will also present a range of culinary experiences for the occasion. Chefs will prepare festive dishes inspired by both regional and Maldivian flavours, with dining experiences ranging from relaxed daytime offerings by the beach to evening dinners served under the stars.
Set within the Baa Atoll UNESCO Biosphere Reserve, the celebrations are designed to offer guests an opportunity to experience the traditions and atmosphere of Eid in a natural island setting.
Guests interested in the full programme of celebrations can access the resort’s Eid 2026 brochure online.
SO/ Maldives has announced a three-day Easter programme taking place from 3 to 5 April 2026, featuring dining experiences, sunset gatherings, beach cinema and family activities across the island.
Set against the backdrop of the Maldives’ lagoon waters, the programme is designed to combine culinary events, music and leisure activities, offering guests a variety of experiences over the Easter long weekend.
The celebrations begin on Good Friday, 3 April, with the Ocean Harvest & Wine Soirée at Citronelle Club. The event features a five-course seafood dinner inspired by South African cuisine, accompanied by a curated wine pairing hosted by a master sommelier. The experience will be limited to 20 guests.
Later in the evening, entertainment will continue at Lazuli Beach Club, where the Vintage Nights at Lazuli event will feature curated wines and DJ music in a beachfront setting.
On Saturday, 4 April, guests will be invited to a Golden Hour Sundowner at the Pavilion Bar, where cocktails will be served during sunset overlooking the lagoon.
The evening will continue with the Starlit Holy Saturday Feast at Lazuli Beach Club, featuring a three-course dinner served outdoors. The programme will conclude with an open-air beach cinema experience, where guests can watch a film on the beach accompanied by popcorn and refreshments.
The programme concludes on Easter Sunday, 5 April, with a series of events along the island’s shoreline. The evening begins with Easter Bloom Cocktail Hours, offering floral-inspired drinks prepared with fruit and botanical ingredients.
The highlight of the celebrations will be the Easter Grand Beach Barbecue at Citronelle Club, featuring grilled dishes served in a seaside setting. The event will also include live saxophone performances and music.
Throughout the weekend, children will have access to a dedicated programme at The Nest, where activities will include Easter crafts, egg decorating, dance sessions and an Easter egg hunt. Additional activities such as face painting, piñata games and creative workshops will also be available.
Through its Easter programme, SO/ Maldives aims to provide a mix of dining, entertainment and family-friendly activities, offering guests the opportunity to mark the holiday while enjoying the island setting.
Kula Kula Festival will return for its fourth edition at Oaga Art Resort from 20 to 25 March, bringing together cultural influences from the Maldives, Brazil and India in a programme centred on art, music and community.
The festival combines the traditions of Eid al-Fitr, the vibrant spirit of Brazilian Carnaval, and the colours of Holi, creating a multi-cultural celebration that highlights performance, heritage and shared experiences.
The programme begins with Eid-related traditions, inviting guests to take part in cultural rituals and performances inspired by Maldivian heritage. The festival continues its collaboration with Kiyavahi Culture Studio, which will present workshops, demonstrations and interactive installations showcasing traditional Maldivian crafts and storytelling.
Guests will have opportunities to explore cultural practices such as Fangi Viyun (thatch weaving), Roanu Veshun (coir rope making), Kasabu Gethun (lacquer work) and Thundu Kunaa Viyun (mat weaving). Through these sessions, participants will also learn about the history and cultural significance of these crafts.
The festival begins with Eid Malhi, a bonfire lit by Oaga’s Rahvehin on 19 March to mark the sighting of the new moon. This is followed by Eid prayers and Eid Sai, a traditional breakfast at Kaa Kada. Throughout the day, guests can take part in activities such as Eid Kulhivaru beach games and Fen Kulhi, which combines water and colour play. The Maali Parade, inspired by Maldivian folklore, will lead guests to a high tea gathering at Raa Baa Beach featuring live performances and traditional attire experiences.
Live entertainment forms a central part of the festival programme, with performances from local and international artists. Guests will experience Boduberu fusion performances by Nuff and Ciam, storytelling rhythms by the Harunulaa Boduberu Group, and electronic music performances by Digital Flock during the Kula Kula Rave.
Dhivehi music will also be featured through performances by solo artist Naffah, while storyteller Amney will share Maldivian folklore through music sessions at O’Fire.
Indian classical music will be represented by sitar player Kalyan, who will perform across multiple sessions during the festival. Brazilian performer Alikko will introduce elements of Brazilian culture through fire shows and performances accompanying dining experiences at Kaa Kada.
Dining experiences will also highlight cultural diversity, with lunch and dinner services featuring themed presentations such as Eid Jaafaiy and Indian-inspired cuisine prepared in collaboration with Kalyan.
Evening programmes will include live music, fire performances, communal barbecues and a collaborative live art and music showcase titled Unethical Projection, featuring both resident and guest artists.
For the first time at the festival, Brazilian Carnaval will be incorporated into the programme. The segment will feature a Brazilian-inspired buffet at Kaa Kada, performances by Alikko and a Kula Kula Rave hosted by Digital Flock.
The final days of the festival will bring together Maldivian, Indian and Brazilian cultural influences under the theme Made of Many, Felt as One. Activities will include music sessions, collaborative performances featuring the Rav drum with Nuff, and storytelling by Amney.
The festival will conclude with a Deserted Day Picnic at Hastheem Sandbank, where guests can enjoy watersports, snacks and DJ sets by Afruh.
Through its programme of performances, cultural workshops and shared experiences, the Kula Kula Festival continues to position itself as a platform for artistic expression and cultural exchange, reflecting the creative identity of Oaga Art Resort.
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