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
Awards
Atmosphere Kanifushi named Best Family Resort in Indian Ocean for sixth consecutive year

Atmosphere Kanifushi has once again been recognised as the ‘Indian Ocean’s Leading Family Resort’ at the World Travel Awards 2025, marking the sixth consecutive year the island has received this prestigious accolade. This continued recognition highlights the resort’s unique appeal to both romantic couples and adventure-seeking families.
Commenting on the achievement, Ram Bhoyroo, General Manager of Atmosphere Kanifushi Maldives, noted that the island’s charm lies in its ability to strike a harmonious balance between tranquillity and excitement. “While some Maldivian resorts cater to serenity and others to a more vibrant, active scene, Atmosphere Kanifushi is all about equilibrium—offering peace and relaxation alongside engaging, family-friendly experiences,” he shared.
Nestled on a long, naturally beautiful island with lush vegetation and surrounded by a stunning turquoise seascape, Atmosphere Kanifushi owes its success not only to its natural setting but also to the dedication of its team. According to Bhoyroo, the recognition is a result of the team’s relentless commitment to delivering exceptional experiences for guests of all ages. “By intuitively understanding the needs of each guest, we ensure a seamless blend of high-touch service, relaxation, and fun, all while offering the true feeling of a castaway escape in paradise,” he said.
With one of the highest guest repeater rates in the Maldives, the resort continues to innovate in order to surprise and delight returning visitors. From refreshed culinary offerings to vibrant live entertainment, there is always something new to discover.
Most recently, Atmosphere Kanifushi unveiled its new Essens Spa, a concept that redefines relaxation and wellbeing. The spa features immersive wellness journeys, yoga and detox sessions, traditional healing rituals, and a full suite of salon services. In keeping with the resort’s inclusive approach to family wellness, the spa also offers a Kids Spa Experience, complete with playful treatments for children and specialised teen wellness rituals that nurture growing bodies, youthful skin, and emotional balance.
This latest award reinforces Atmosphere Kanifushi’s reputation as a premier destination for families seeking both luxury and adventure in the heart of the Indian Ocean.
Awards
OZEN RESERVE BOLIFUSHI wins ‘Maldives’ Leading Luxury Hotel Villa’ at 2025 WTAs

THE OZEN COLLECTION has announced that OZEN RESERVE BOLIFUSHI has been named ‘Maldives’ Leading Luxury Hotel Villa’ at the prestigious 2025 World Travel Awards, marking a third consecutive win and reaffirming its status as one of the Indian Ocean’s most distinguished villa experiences.
At the heart of this achievement is the resort’s crown jewel – the Royal RESERVE. Spanning 3,000 square metres, this exceptional villa redefines ultra-luxury in the Maldives. It features a private beach, expansive pool, personal spa treatment room with dedicated therapists, and opulent living spaces adorned with intricate handcrafted detailing. Guests are offered an array of exclusive privileges, including 24-hour private butler service, a personal chef for bespoke dining at the in-villa restaurant, and a private bar serving tailored beverages. The villa also boasts direct lagoon access and sweeping views of the Indian Ocean, all enhanced by the signature RESERVE Experience – a promise of seamless, discreetly curated service.
This latest accolade continues a tradition of excellence for the resort, following its debut year that saw it claim multiple titles including ‘World’s Leading Honeymoon Resort’ and ‘Indian Ocean’s Leading Luxury Villa’.
Monica Coppetta, General Manager of OZEN RESERVE BOLIFUSHI, expressed her gratitude, “It is with heartfelt pride and deepest appreciation that we receive this coveted accolade from the World Travel Awards for the third consecutive year. This extraordinary distinction celebrates our passionate pursuit of crafting unforgettable journeys, where visionary design dances with gracious service amidst the Maldives’ breathtaking serenity. To be honoured by both our esteemed industry colleagues and cherished guests fills us with immense joy, strengthening our commitment to pioneering bespoke moments that linger in the memory long after departure. Every day, our team finds inspiration in turning dreams into reality, and this recognition fuels our devotion to perfecting the art of meaningful luxury.”
The 2025 win builds on a long-standing legacy of recognition for the resort, which was also recently nominated at the World Spa Awards 2025 as Maldives’ Best Wellness Retreat, thanks to its transformative ELE|NA Elements of Nature Spa – a sanctuary renowned for innovative wellness practices and holistic rejuvenation.
The RESERVE Plan™ at OZEN RESERVE BOLIFUSHI sets the benchmark for all-inclusive luxury. It includes catamaran transfers, unlimited treatments at the award-winning ELE|NA spa, and elevated dining across seven distinctive venues. Guests also enjoy premium Champagne, curated ocean excursions, and personalised experiences with Best Dives. This seamless integration of indulgence and service exemplifies ‘abundant luxury’, making OZEN RESERVE BOLIFUSHI one of the Maldives’ most exclusive and thoughtfully crafted escapes.
Awards
Baros Maldives wins Indian Ocean’s Leading Water Villa Resort title at 2025 World Travel Awards

Baros Maldives has been honoured as the Indian Ocean’s Leading Water Villa Resort 2025 by the prestigious World Travel Awards, a recognition that underscores the resort’s enduring dedication to delivering heartfelt and intimate experiences that are quintessentially Baros.
Nestled in the tranquil waters of North Malé Atoll, the Baros Water Villas are a refined expression of effortless luxury and seclusion. Each villa has been thoughtfully crafted to offer direct access to the turquoise lagoon, spacious sun-drenched decks ideal for peaceful reflection, and, in select accommodations, private pools with panoramic views of the Indian Ocean. Every element is designed to foster connection—with nature, with oneself, and with the timeless essence of Baros.
Beyond the villas lies Baros’ legendary house reef—teeming with vibrant marine life and coral gardens. Guests are invited to explore this underwater wonder through serene morning swims or sunset snorkelling sessions alongside turtles and schools of colourful reef fish.
Proudly Maldivian-owned and welcoming guests for over five decades, Baros Maldives has built a legacy of authentic hospitality and understated elegance. With just 75 villas, a team known for its warm, personalised service, and curated island experiences, the resort continues to offer stays that feel deeply personal and memorable.
Ibrahim Shijah, General Manager of Baros Maldives, expressed gratitude on behalf of the resort, “Our heartfelt thanks go to our guests, partners and the entire Baros team. This recognition is an honour and a wonderful reminder that the spirit of Baros continues to resonate with those who return to our shores time and again.”
As Baros celebrates this milestone, travellers are warmly invited to experience—or rediscover—the quiet magic that makes the island an enduring favourite in the Maldives.
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