The Challenge
Located within the Knuckles Mountain Range, Ferndale Retreat is an exclusive four-room luxury retreat offering privacy, nature, and personalised hospitality.
Prior to partnering with Elevate Hospitality, the property was managed by another hospitality management company. Following a comprehensive commercial assessment, we identified that although the property delivered an exceptional guest experience, its pricing strategy was restricting market access and limiting revenue potential.
The retreat was being sold exclusively on an all-inclusive basis, with accommodation, meals, beverages, and experiences bundled into a single nightly rate. While this approach appeared attractive on paper, it significantly reduced the property's appeal among Online Travel Agencies (OTAs), Destination Management Companies (DMCs), and international travel partners who preferred flexible pricing structures.
Our Solution
Rather than reducing room rates, Elevate Hospitality redesigned the property's commercial strategy while preserving its premium market positioning.
Our scope included:
- Conducting a comprehensive commercial and pricing review.
- Repositioning the pricing structure from an all-inclusive model to a Bed & Breakfast (BB) model, creating greater flexibility for both guests and travel partners.
- Retaining the property's premium positioning while making it significantly more competitive within OTA and travel trade markets.
- Creating new ancillary revenue opportunities by allowing guests to purchase lunches, dinners, beverages, and curated experiences separately.
- Introducing dynamic pricing strategies based on demand patterns and market conditions.
- Expanding the property's visibility across Online Travel Agencies (OTAs) and Sri Lanka's travel trade network.
- Providing ongoing hotel revenue management, pricing optimisation, and commercial performance monitoring.
Project Impact
Ferndale Retreat demonstrates how strategic pricing, revenue management, and commercial positioning can unlock the full earning potential of a hospitality business without lowering prices or compromising brand value.
At Elevate Hospitality, we believe successful revenue management is not about selling rooms for less—it's about designing pricing strategies that maximise occupancy, increase guest spending, and create sustainable long-term profitability.
