This study examines the multi-step synthetic service pricing approach. A pricing model is suggested to develop hotel room rates considering the complexity of hotel business such as market competition, cost structure, price sensitivity, and unique hotel service characteristics. The model is consisted of seven steps including differentiation premium pricing, cost-plus pricing, extended cost-oriented pricing, client-driven pricing, and bundle pricing. This approach combines the price decision making process with the other pricing approaches rather than using a single pricing approach. Findings of this study provide useful guidelines for service pricing, especially hotel room rates, by considering simultaneously important aspects of service pricing in hotel business.