Question about SEO services

I have been offered to do SEO for a hotel website, but I never offered a SEO service to anyone before. Keeping in mind I am aware of all free traffic getting techniques like article marketing, bookmarking, blogging etc What services do I offer and how much do I charge.

You might be best outsourcing the project until you have run a few test projects yourself and seen how much work is involved. Otherwise you are going to struggle as every seo project is different.

<snip/>

Depends on number of keywords and competition per keyword.
You have to ask them for number of keywords and then analyze the web where it appears on SERP and then analyze that how much you have to work on the website to getting good SERP position.