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
ELE|NA champions mindfulness on World Digital Detox Day
On December 10th, ELE|NA participated in the global celebration of World Digital Detox Day (WDDD) 2024, an initiative focused on promoting mindfulness and reducing screen dependency. The theme for this year, ‘Smartphone-Free Childhood,’ highlighted the importance of protecting young minds from overexposure to technology while fostering meaningful human connections and cultivating balance in an increasingly digital world.
World Digital Detox Day, founded by Dr. Rekha Chaudhari, is now celebrated in over 70 countries, with support from governments and organisations dedicated to promoting mindful living. ELE|NA’s involvement reflected its core philosophy, ‘Wellness Your Way™,’ which emphasises personalised well-being journeys, alongside its universal approach, “Wellness is for All,” aimed at fostering health and harmony within diverse communities.
In recognition of ELE|NA’s leadership in wellness within the Maldives, Heidi Grimwood, Vice President of ELE|NA, was appointed as the World Digital Detox Day Ambassador for the Maldives. This appointment acknowledged her dedication to advocating for digital mindfulness and holistic well-being across ELE|NA sanctuaries.
All eight ELE|NA sanctuaries—including OZEN RESERVE BOLIFUSHI, OZEN LIFE MAADHOO, OBLU SELECT Sangeli, OBLU SELECT Lobigili, OBLU NATURE Helengeli, OBLU XPERIENCE Ailafushi, VARU by Atmosphere, and RAAYA by Atmosphere—hosted thoughtfully curated activities to promote disconnecting from screens.
Highlights of these activities included:
- Mindfulness sessions, encouraging participants to cultivate inner peace and self-awareness.
- Yoga classes, focusing on balance, strength, and present-moment mindfulness.
- Nature walks, offering opportunities to reconnect with the natural world.
- Team member wellness activities, designed to foster camaraderie and rejuvenation.
These initiatives invited participants to embrace meaningful, unplugged moments while nurturing their mental, physical, and emotional well-being.
At ELE|NA, wellness is a collective journey shared by both guests and team members. On this significant day, team members were encouraged to unplug, reflect, and engage in activities that nurtured their personal wellness.
As the World Digital Detox Day Ambassador for the Maldives, Heidi Grimwood emphasised the importance of being present, stating, “World Digital Detox Day serves as a powerful reminder of the importance of being truly present. Through our philosophy of ‘Wellness Your Way™’ and our belief in ‘Wellness for All,’ we aim to create spaces where everyone—from our guests to our teams—can disconnect, recharge, and rediscover the beauty of the present moment.”
Dr. Rekha Chaudhari, the founder of World Digital Detox Day, reflected on this year’s celebration, “This year’s worldwide celebration of World Digital Detox Day has spoken volumes, with wellness experts, educational entities, and global organisations joining hands to advocate for healthier, more mindful living. A significant highlight of our efforts has been the petition advocating for a ban on social media for children under 16 years, which has gained tremendous support. We are also thrilled to announce that we have surpassed our previous milestone of 7,500,000 offline supporters. This remarkable growth reflects the growing global recognition and impact of our mission.”
ELE|NA extended gratitude to Dr. Rekha Chaudhari for her vision and leadership, which have inspired millions to reevaluate their relationship with technology and prioritise offline moments of connection.
The success of World Digital Detox Day 2024 underscored ELE|NA’s commitment to promoting digital wellness and sustainable well-being. By supporting initiatives like WDDD, ELE|NA reaffirmed its mission to provide personalised wellness experiences while encouraging a deeper connection with what truly matters.
As the day concluded, the atmosphere across ELE|NA sanctuaries was one of inspiration and gratitude. Guests and team members celebrated the power of mindfulness, human connection, and the enduring beauty of an unplugged moment—reminding everyone that true wellness begins by stepping away from screens and embracing the present.
Featured
JW Marriott Maldives unveils luxury wellness escape
JW Marriott Maldives Resort & Spa offers guests the opportunity to embrace ‘Stay in the Moment’ — a new wellness-centred experience reflecting the JW Marriott philosophy of mindful living. The exclusive package invites guests to pause, recharge, and reconnect with themselves and their loved ones amidst the serene beauty of Vagaru Island.
Designed for travellers seeking a purposeful escape from the pressures of daily life, ‘Stay in the Moment’ features a curated array of holistic wellness activities inspired by nature, simplicity, and connection. Visitors can immerse themselves in soul-enriching experiences such as personalised wellness consultations, private yoga sessions, the JW Garden to Glass experience, beachfront dining, and rejuvenating treatments at the tranquil overwater Spa by JW.
Each day begins with a sumptuous buffet breakfast offering international delicacies alongside locally inspired specialties. As the sun sets, guests can indulge in a captivating three-course beachfront dining experience under the stars, serenaded by the calming sounds of the ocean.
A standout feature of the package is the JW Garden to Glass experience. Guests are invited to join the resort’s mixologist and herb gardeners on a sensory journey where they hand-select fresh, seasonal ingredients and master the art of creating bespoke cocktails. This hands-on experience seamlessly combines creativity, mindfulness, and a deep connection to nature.
Thoughtfully curated turndown amenities further enhance the stay, bringing elements of nature into the villas to promote mindfulness and relaxation.
Guests can enjoy moments of togetherness with an 80-minute aromatherapy massage at Spa by JW, offering a serene escape. Personalised consultations with the resort’s in-house wellness instructor ensure each visit is tailored to individual needs. Private yoga sessions also elevate the experience, allowing guests to embrace the peaceful natural surroundings.
Located on the pristine Vagaru Island in the tranquil Shaviyani Atoll, JW Marriott Maldives Resort & Spa provides an oasis of mindful luxury. Each of its 60 elegantly designed villas boasts a private pool and stunning ocean views. With world-class dining, holistic spa treatments, and enriching activities for all generations, the resort offers a perfect blend of mindfulness, luxury, and family-friendly experiences.
The ‘Stay in the Moment’ package reflects the resort’s commitment to crafting meaningful connections by merging luxury, wellness, and mindfulness. Guests can also take advantage of complimentary access to non-motorised water-sports, a one-time 30-minute complimentary photography session with a printed photo to capture treasured memories, and the attentive service of a private Thakuru (butler), ensuring every detail of their stay is seamlessly managed.
Celebration
Cinnamon Hotels & Resorts Maldives welcomes Santa on scooters for festive island Christmas
The festive spirit came alive at Cinnamon Hotels & Resorts Maldives, where all four resorts—Cinnamon Dhonveli Maldives, Cinnamon Hakuraa Huraa Maldives, Cinnamon Velifushi Maldives, and Ellaidhoo Maldives by Cinnamon—lit up with joyous Christmas celebrations. Guests were immersed in the magic of the season, with each resort adding its own unique flair to the timeless tradition of tree lighting ceremonies against the breathtaking backdrop of the Indian Ocean.
A highlight of the celebrations was Santa Claus’s unconventional arrival—not by sleigh, but on a scooter! Led by a cheerful parade of team members riding decorated scooters, Santa’s island-style entrance was met with applause and laughter. The vibrant procession, complete with festive ribbons, twinkling lights, and plenty of holiday cheer, brought smiles to guests of all ages as Santa waved his way into the celebrations.
At each resort, the ceremonial lighting of the Christmas tree brought families, couples, and friends together in a moment of enchantment. The joyful sounds of carollers filled the evening air, adding a harmonious touch to the festivities. Guests were treated to a selection of seasonal goodies, including freshly baked cookies and other festive delights. Children revelled in Santa’s arrival, receiving special treats while families captured precious memories against the twinkling backdrop of the decorated trees.
With more celebrations planned over Christmas and the New Year, guests can look forward to a holiday filled with memorable moments at Cinnamon Hotels & Resorts Maldives.
-
News1 week ago
Experience paradise with complimentary transfers at Cinnamon Hakuraa Huraa Maldives, Cinnamon Dhonveli Maldives
-
Featured1 week ago
AIDA brings over 2,000 tourists to Maldives in major economic boost
-
Featured1 week ago
New deep-sea fish species discovered in Maldives: Chromis Abadhah
-
Drink1 week ago
Toast to inclusion, innovation, new beginnings at SAii Lagoon Maldives
-
News1 week ago
Bandos Maldives marks 52nd anniversary
-
Awards1 week ago
Atmosphere Core celebrates multiple wins at NSURE Safety and Sustainability Awards
-
News1 week ago
Unwrap enchantment of Maldives this festive season with unbeatable stay at Centara Mirage Lagoon Maldives
-
Entertainment1 week ago
Electrifying New Year’s Eve with Dj Luca Schreiner at The Westin Maldives Miriandhoo Resort