Glamping Site Feasibility
Glamping is a concept that’s spreading like wildfire across the UK. With more people than ever considering starting a glamping business, we thought we’d set out how much money a glamping business actually makes. We’ve established in previous blogs and in our 2021 Glamping Industry Forecast that glamping is well and truly here to stay, so now it’s time to take a deep dive into the financial side, considering the income, outgoings and ROI (return on investment) of glamping sites. With years of experience in designing and running glamping sites, we’d like to think we’re the right people to open your eyes to the true potential of your glamping business dream.
We’ll begin with a reminder of glamping’s increasing popularity. The graph above shows the year-on-year increase of the number of people searching the term ‘glamping’ on Google. The huge spike at the end was caused by the staycation frenzy that kicked off in the summer of 2020, and this will continue for the foreseeable future. Growing industries are the best kinds of industries to invest in, and there are few that are exploding like glamping.
Location is also important when it comes to making money with a glamping business. As you can see from the information below, the UK and Ireland are at the forefront of the glamping revolution, putting anyone in those regions in the perfect position to set up a glamping site.
Glamping Business Outgoings
Glamping site running costs probably aren’t as high as you’d think. A lot depends on the type of pod, hut or yurt you have. For example, electricity will cost almost nothing in a yurt with no heating, but it can get expensive in a pod with electric heating (though remember, proper heating and insulation pays for itself if it means you attract guests all year round).
The monthly ongoing costs that a glamping site will incur are:
- Cleaning Costs
- General Maintenance
A (very) general rule of thumb is that each glamping pod should cost around £250-500 per month to run for all of the above. These costs can go up or down depending on your personal involvement in things like cleaning and maintenance. If you’d like some in-depth analysis of your specific glamping site idea, have a look at our glamping feasibility study, which will answer this and other glamping questions you may have.
What is the Income of a Glamping Business?
We’ll use our co-founders’ North Coast 500 Pods site in Achmelvich (voted the best glamping site in Scotland) as an example for our figures. Glamping site income fluctuates from season to season, with occupancy rates and income tending to fall in the winter months. In this period, the average glamping site shouldn’t expect to generate much more than £1,000 from each pod per month. However, this is more than made up for in the high season between April and October, where each pod can generate £4000 per month. This is in stark contrast to the £250-500 per month they take to run!
Cashflow - How Much Money Does a Glamping Business Actually Make?
Anyone who knows about business knows that cashflow is the most important thing! We’ll now take a broad look at glamping site cashflow, but if you want a deeper and more accurate look into the profit-making potential of your glamping site idea, consider doing a glamping feasibility study.
Let’s say you have a relatively small patch of land on which you put five high-quality glamping pods. You charge £130 per night and achieve an average occupancy rate of 60% throughout the year (this figure will be much higher in the summer and much lower in the winter). That’s £11,700 of income per month, or £142,350 per year. With average running costs of £400 per pod each month, that’s a comfortable six-figure net income each year, meaning your initial investment (around £200,000) is repaid in no time. Even if you don’t already own land, the initial purchase cost will be offset rapidly by the incredible returns glamping can generate.
The profit-making potential of a glamping business is huge, offering an ROI that blows traditional property investments out of the water. If you want to make fantastic money in an exciting and rewarding field, glamping is the way to go.