Why Starting a Glamping Business Will Be Your Best Investment
A new report by The Glamping Show exhibitors Sykes Cottages shows that operating a glamping or quirky short-term let business may just be your next best investment.
I feel like, in the past couple of years at least, we’ve all heard “glamping is booming” at least a hundred times – but this time it’s really not just a catchy sales pitch!
Short-term rental demand for 2022 is pacing well above previous years and is expected to be a record year for staycations. Relative to 2021, demand is about 42% higher, and looking further back, demand is already 20% higher than at the same point in 2019. The report uses Sykes’ booking figures and revenue data to gauge long-term investment opportunities across the UK and their success.
Some 23% of existing holiday home owners have plans to install glamping accommodation, such as yurts or pods, on their land in the next five years.
Not only is glamping now more popular, but also more profitable. The average glamping property now generates around £17,000 each year. Plus, when you have this as a side project, it can be a big boost to finances. In fact, 69% of people included in Sykes Cottages’ holiday let survey said they have a full-time job, too.
How much does it cost?
Glamping business owners report an average cost of £65,000 to get set up, which we don’t have to tell you is far cheaper than purchasing a property, while annual bills for a holiday home come in at around £11,500 – this includes things like council tax, insurance, cleaning and maintenance costs.
If you go by the average, you’ll break even on your investment after just under 4 years!
The top subcategories proving to boost earnings were hot tubs at a 49% increase, fire pits at 19% and dog-friendly accommodation, earning hosts 9% more than those without.
Graham Donoghue, chief executive of Sykes Holiday Cottages, said: “This year represents a key moment for holiday home owners to adjust their strategies, as the wants of holidaymakers have begun to change. Diversification of lettings portfolios offers the chance to reap the rewards of a country hungry for greater freedom and relaxation.
“Customers are always looking for a different type of holiday experience and glamping offers exactly that. With this surge of interest likely to remain a fixture for years to come, now is the time to lay the foundations for new letting opportunities and make the most of this exciting market change.”
How do I start my glamping business?
If you’re thinking of starting up a new glamping venture, it’s time to get involved. The industry is growing at an unprecedented rate and with relatively low startup costs, and no huge wait times, you could be on your feet and full steam ahead by the end of the year.
We have a page dedicated to product breakdowns here, to help you through the growing pains that are starting a business!
What I love about this industry – and speaking with other people, this seems to be a universal opinion – is that although it is growing and more and more people are getting involved, we still have that wonderful community spirit. Truly, everyone does know everyone!