Featured
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
Featured
Four Seasons Resorts Maldives blend family travel with marine discovery
As family travel patterns continue to evolve, with multigenerational holidays and “schoolcations” becoming a growing part of the market, Four Seasons is positioning its Maldives resorts as destinations where families can combine leisure with learning, exploration and shared experiences. Through programmes at Four Seasons Resort Maldives at Landaa Giraavaru and Four Seasons Resort Maldives at Kuda Huraa, the brand is offering a Maldives-based approach to family travel that extends beyond the traditional resort stay.
In the Maldives, the focus is placed on experiences that allow families to spend time together while engaging with the natural environment in direct and practical ways. At Four Seasons Resort Maldives at Landaa Giraavaru, marine education forms a central part of the family offering. Children and teenagers can take part in hands-on initiatives alongside experts from The Manta Trust, learning about coral restoration, manta ray research and ocean conservation. The programme gives younger guests an opportunity to understand the marine ecosystems that define the Maldives while participating in activities linked to ongoing conservation work.
At Four Seasons Resort Maldives at Kuda Huraa, the family experience is also shaped by the surrounding lagoon and reef environment. Younger guests can take part in introductory diving, surfing and marine conservation activities designed to build early awareness of the ocean and its ecosystems. These experiences place the Maldives’ natural setting at the centre of the stay, allowing families to engage with the destination through activity as well as observation.
This emphasis on learning through travel reflects wider changes in family tourism, where parents are increasingly looking for holidays that combine recreation with educational value. In the Maldives, that approach has particular relevance, given the country’s dependence on marine ecosystems and its reputation as one of the world’s leading island destinations. By integrating conservation-focused experiences into resort programming, Four Seasons is presenting family travel not only as a period of rest, but also as an opportunity for younger travellers to develop a closer understanding of the environment around them.
The Maldives setting also supports multigenerational travel in practical terms. Resorts such as Landaa Giraavaru and Kuda Huraa are well suited to families travelling across age groups, where grandparents, parents and children may all be sharing the same holiday but looking for different forms of engagement. Accommodation, marine activities and wellness offerings can be structured in ways that allow families to spend time together while also catering to different interests and energy levels.
The family proposition is strengthened by the Maldives’ ability to combine relaxation with activities that are tied closely to place. Lagoon-based discovery, reef experiences and conservation work provide a clear alternative to more conventional beach holiday programming. Rather than limiting the stay to accommodation and dining, these activities allow the destination itself to shape the guest experience.
In this context, Four Seasons’ Maldives resorts reflect a broader shift in how luxury family travel is being positioned. The emphasis is no longer only on privacy and comfort, but also on engagement, shared discovery and experiences that carry value beyond the holiday itself. In the Maldives, where marine life and island environments remain central to the visitor experience, that model gives families a way to connect both with each other and with the destination.
Through Landaa Giraavaru and Kuda Huraa, Four Seasons is therefore presenting a Maldives offering that responds to changing family travel expectations. By combining marine education, outdoor activity and resort-based comfort, the brand is aligning its family travel strategy with the qualities that continue to set the Maldives apart. The result is a version of family travel that is shaped not only by where guests stay, but by what they are able to learn and experience together while they are there.
Drink
Sirru Fen Fushi hosts Flor de Caña mixology event with Dinesh Mondkar
The Behind The Bar Sirru Icon series recently hosted a mixology event at Sirru Fen Fushi Private Lagoon Resort, featuring Dinesh Mondkar, Flor de Caña’s brand ambassador for India.
The event gave guests an opportunity to explore a selection of rum cocktails while learning more about the craftsmanship and heritage behind the Flor de Caña brand. Set against a sunset backdrop over the ocean, the session combined cocktail-making techniques, brand storytelling and a relaxed island setting.
Guests were introduced to a range of cocktails that highlighted bold flavours and the versatility of rum in contemporary mixology. The evening also offered insight into the methods and presentation behind premium cocktail service, adding an interactive element to the experience.
The event formed part of the resort’s ongoing Behind The Bar Sirru Icon series, which continues to bring recognised figures from the international spirits industry to the Maldives. Through the series, the resort aims to expand its food and beverage offering with curated events that connect guests with global brands and industry expertise.
Such experiences are designed to complement the wider guest programme by combining destination dining and beverage concepts with the setting of the Maldives, while offering visitors a more immersive way to engage with the resort’s hospitality offerings.
Featured
Angsana Velavaru marks reopening of upgraded futsal ground
Angsana Velavaru has reopened its futsal facility as part of efforts to enhance guest experiences and staff engagement through sport and community activities.
The reopening ceremony was officiated by Dhaalu Atoll Council president Ahmed Shafiu and the resort’s general manager, Ahmed Zahir, who jointly cut the ribbon to mark the occasion.
Located within the island grounds, the futsal court measures 57 metres by 38 metres and is intended to serve as a space for both recreational use and organised activities for guests and resort associates.
The resort said the facility would form part of its wider recreational offering and would host workshops and expert-led collaborations aimed at providing guests with sports-based experiences while also supporting skill development and interaction. It added that the initiative also reflects its focus on staff wellbeing, teamwork and active living.
The opening event included friendly matches between the Angsana Velavaru men’s and women’s teams, as well as an inter-resort match between the Angsana Velavaru Orange Army and Banyan Tree Vabbinfaru.
Adjacent to the futsal court is the resort’s upgraded watersports centre, which now includes updated guest facilities such as shower and changing areas.
Ahmed Zahir said the reopening of the futsal ground represented more than a recreational upgrade and reflected the resort’s commitment to creating meaningful experiences for both guests and associates. He said the facility would support active living, connection and wellbeing, while also serving as a space for learning and collaboration.
Angsana Velavaru, located in South Nilandhe Atoll, said the reopening of the futsal facility forms part of its wider efforts to expand its lifestyle and community-focused offerings.
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