Ever considered setting up a luxury site for the purpose of glamping business? Wondering how long it will take for a glamping business to pay off? If you came here for figures, we will paint you a true picture of glamping business costs and the ROI you could expect from a small-scale glamping investment. Stay with us to see why it may be rosy.
1. Why glamping is a good way to start business?
Glamping, or glamorous camping, began as a trend and is now integral part of many people’s lives. It’s a great combination of pristine wilderness, adventure, comfortable rooms and high-end finishes for guests and a sound idea for business. First, you just set up one or two lush accommodations and next thing you know, you are your own boss and the owner of a glamping business. You may find the enterprise truly worthwile watching it become your side business that lands you extra cash on the weekends, a voguish hobby or an instant dream career. At some point, it may even become your full-time job and a major source of income.
2. I don’t own a land. Is glamping even for me?
The thing is, you don’t need to. Renting a piece of land and setting up one or two glamping units will perfectly suffice. Not only will it spare you the risk of investing high amounts of time and money, but also it will serve you as a reality check, showing you what to expect from a glamping business and what income it could generate.
3. Who is glamping business good for?
Anyone with passion for outdoors, we daresay, and (what goes without saying) anyone who wishes to invest in developing this passion on behalf of clients who seek luxury experience. It is a business option often chosen by landowners, farmers, owners of vineyards or farms and their families who want to capitialize on their existing assets. By turning their properties into luxury camping sites they maximize the value of their land, and consequently, their potential for profit. Glamping is suitable for many different people and, as hinted earlier, it should not be dismissed as unrealistic by those who are not yet investors, but consider taking this road.
4. What are the prices charged per night spent in a glamping unit?
We have made a small investigation on Glamping Hub, one of the biggest online booking platforms, where we searched through 50 different glamping dome accommodations around the world, and that’s what we found out as regards their prices:
Minimum price per night: €37.84
Average price per night: €182.35
Maximum price per night: €1,367.14
Looks promising? As you may suspect, profits for owners of glamping accomodations may be pretty attractive, especially when offered in a greater number, for a longer period of time (e.g. in all 4 seasons instead of over spring-summer period only).
5. What are the costs of setting up a glampsite?
To answer this question, we will bring up the case of one of our clients, who owns a gorgeous piece of property in Cornwall, offering camping, caravanning and for some time now, also glamping. This client took the opportunity and decided on diversifying his campsite by incorporating just one classic dome of 30 square meters and is now planning to further develop this offering.
A ready-to-assemble dome structure (framework + membrane) was securely packed and immediately shipped to Cornwall. The set was delivered on a Thursday, and client managed to assemble the dome on his own and furnish it by Saturday, just in time for his first guests (this includes setting up a floor!).
Price of a dome structure: ~€7,575.00
Shipment costs: ~€500
Basic furnishing and floor costs: ~€1,350.00 –€2,700.00
Total upfront costs: ~€9,425.00–€10,775.00
Now, prices at his glampsite range from: €580 per week and €88 per night, and the dome is usually booked one month in advance!*
As you can see, setting up a small glamping site can be done with just one single unit at your disposal, and costs of such venture are not scary at all. Actually, it turns out a great deal compared to purchasing a holiday home to let.
* Last time we heard from him, this figure changed into 6 (in words: six) months in advance.
6. What glamping features can I include?
There are many optional accessories designed to enhance your glamping dome unit. The prices for standard dome kits (framework and membrane) start from €3.375,00 and rise with dome size and addition of the said optional accessories. Adding special features will not leave you flat broke and it will allow you to offer glamping apartments in every season.
What are the options? The most popular accessories include: a solar-powered fan for enhanced air-circulation in extreme conditions, wood-burning stove & chimney package for heating, effective insulation kit. These are a wonderful thing to consider, especially for people who prefer hands-on, ready-made solutions.
7. What return on investment should I expect?
Obviously, it depends on many factors: your glamping solution, location and facilities that you offer. If you take our client’s glampsite with one glamping dome for example, revenue after 12-month period would be around:
€88 / night x 365 nights = ~€32,120.00
Hence, when we assume that the costs of the glamping investment amount to €8,000.00, the ROI (return on investment) in half a year would then equal 1, as in:
8. How quickly will glamping investment pay off?
The above calculation means that in most favourable conditions, one glamping dome would pay off in roughly 6 months. This calculation does not include any possible maintenance costs, property taxes or utility rates the owner may be required to pay.
9. Do I need planning permission?
Upon planning to set up a luxury camping site, it is always best to contact your local planning authority. Each council has their own local plan and policies that are to be adhered to alongside national guidelines. In order to deal with your request and offer advice, the council will require certain information from you, including: the exact location of the site, the size of any proposed development, distance from boundaries, etc. (this information is usually requested on the form along with the drawings to scale; plans must be annotated with accurate measurements).
10. Is it hard to get the glamping business off the ground?
Not when it’s unique. And when you promote it well. Successful business is all about promotion and uniqueness. When you have found your unique glamping solution, put some effort into creating a snappy website and a Facebook page. With today’s booking tools, running your business is as easy as pie (and very rewarding!). We will get back to this issue in another post very soon.