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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
Ayada Maldives has announced a series of experiences to mark the Easter season, inviting guests to celebrate the occasion through a week of activities centred on family time, relaxation and shared island moments.
As the season approaches, the resort will host a programme designed to create a relaxed and welcoming atmosphere for guests. Families are encouraged to spend time together in the island’s natural surroundings, while children take part in a variety of activities and explore the island environment.
Throughout the week, Easter-themed experiences will be integrated into daily island life. At the Zuzuu Kids Club, younger guests will have access to a range of creative and interactive activities designed to encourage imagination and discovery. Meanwhile, adults can take advantage of wellness experiences including sunrise yoga sessions, spa treatments at AySpa, and quiet moments by private pools or along the beach.
Evenings will feature a range of social and culinary experiences, including beachside gatherings, live music and dining events set against the island’s coastal setting. These activities are intended to create a relaxed yet festive environment for guests to come together and enjoy the Easter holiday.
According to the resort, the Easter programme focuses on creating opportunities for guests to reconnect with family and friends while enjoying the island’s surroundings. The celebrations are designed to highlight shared experiences rather than a single event, allowing guests to enjoy the season at their own pace.
Through the programme, Ayada Maldives aims to offer visitors an opportunity to celebrate Easter in a setting defined by natural beauty, hospitality and time spent together.
Sun Siyam Vilu Reef, part of the Sun Siyam Resorts Privé Collection, marked International Women’s Day by celebrating the contributions of female team members and guests, recognising their role in shaping the experiences that define the island.
The resort hosted a white-themed sunset cocktail gathering on the beach on 8 March, where guests and female colleagues came together to mark the occasion. The event provided an opportunity to acknowledge the contributions of women across various roles within the resort.
Sun Siyam Vilu Reef highlighted the role of its female team members in delivering guest experiences, from operational support and administrative roles to culinary and guest service positions. The resort noted that these contributions play a significant role in shaping the overall guest journey on the island.
As part of the evening’s programme, the resort’s resident artist conducted a live painting session, reflecting the creativity and energy women bring to the hospitality sector. Guests were also served a selection of specially curated “White Theme” cocktails prepared by the resort’s bartending team to mark the occasion.
Commenting on the celebration, Thoha Yoosuf said the resort’s female colleagues bring intuition and warmth to their roles, helping create memorable experiences for guests. He added that the celebration recognised their dedication, leadership and commitment.
Through the event, Sun Siyam Vilu Reef highlighted the diverse roles played by women within its team, while recognising the culture and individuality that contribute to the resort’s working community.
Angsana Velavaru is inviting guests to celebrate Easter with a two-day island programme featuring family activities, ocean experiences and seasonal dining from 4 to 5 April 2026.
Located within a lagoon in South Nilandhe Atoll, the resort will host a series of activities designed for families, couples and travellers seeking a seasonal getaway by the sea. The programme includes a combination of wellness sessions, marine experiences and leisure activities intended to bring guests together during the Easter holiday period.
Mornings begin with yoga sessions overlooking the lagoon, followed by opportunities to explore the island’s marine environment through guided snorkelling excursions and discovery experiences organised by the Endheri Marine Centre.
Throughout the day, guests can take part in a range of recreational activities across the island. These include beach kite flying, aqua aerobics sessions and bird feeding at the island’s sanctuary. Adventure-focused experiences are also available, with water sports such as family tube rides and sunset cruises offering guests the opportunity to explore the surrounding lagoon.
Dining experiences form a central part of the Easter programme. Guests can participate in interactive activities including cocktail-making sessions and the Wok & Toss dining experience, which allows visitors to engage with the resort’s culinary team. The programme also includes Easter buffet lunch and dinner at Kaani Restaurant, where seasonal dishes are served in a relaxed island setting.
Evening entertainment includes live music performances, DJ sessions and outdoor film screenings under the stars, creating a relaxed atmosphere for guests to gather and socialise.
Children’s activities are organised through the Ranger’s Club, where a dedicated Easter programme features creative workshops such as bunny mask making, Easter egg painting and string art. Traditional activities including Easter egg hunts and beach races are also planned for younger guests.
The Easter programme at Angsana Velavaru combines marine exploration, family-friendly activities and seasonal dining experiences, offering guests an opportunity to celebrate the holiday while enjoying the island’s natural surroundings.
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