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How to set up a glamping business

Glamping pods in Lake District

Glamping is now hugely popular across coast and country and covers a diverse range of accommodation to cater for holidaymakers of all kinds; from those seeking rest and relaxation to an adrenaline experience.

With relatively little capital investment required and healthy returns, glamping has become a popular choice for many landowners looking to diversify. This industry can be a lucrative investment opportunity and importantly, a sustainable one. However, there are a number of considerations to take into account before setting up a glamping site.

WHERE'S THE BEST PLACE TO SET UP 'GLAMP'?

Successful glamping sites don’t need to be in prime tourism spots. We’re seeing a change in consumer behaviour, with some customers now booking their holiday based on the unique characteristics of the accommodation, with location a secondary factor. 

The site needs to be accessible and in a secluded area, with attractive views of the surrounding countryside. The edges of woodland or beside water are popular. It is important to ensure separation between the accommodation units to allow for privacy, whilst also allowing for access to communal services.

A mains water supply, foul drainage and electricity are essential. Infrastructure costs of between £50,000 and £100,000 are typical for up to four units, depending on the availability of existing services and access.

YOU MAY NEED PLANNING PERMISSION

If the glamping activity occurs for more than 28 days a year you will need consent for change of use of the land for temporary or permanent structures. Planning permission is also required to install utilities on the site.

As of October 2022 short term let properties, which include glamping structures, in Scotland will require to apply for a licence to operate. Licences will be managed by the glamping site’s local authority and last for three years.

THE MANY DIFFERENT TYPES OF GLAMPING

With so many options on the market, from yurts and log cabins to geodesic domes and treehouses, it can be difficult to pick the right type of guest accommodation. Bell tents, yurts and safari tents are seasonal products and will need separate kitchen/bathroom facilities located close by, as well as usually requiring a base or deck platform. Opting for these structures means putting them up and taking them down again each season; you'll also have to clean the canvases regularly. Bell tents start at roughly £1,000 per tent and safari tents can cost up to £20,000 when furnished and equipped.

Accommodation that is unique, high quality and design led will attract the highest nightly rates and best year-round occupancy levels. A high-quality shepherd's hut will cost between £35,000 and £50,000 and a 1-bed cabin or micro lodge from about £80,000. A treehouse will cost at least £100,000 and can be a lot more, depending on size and the standard of fit-out.

Extra touches such as a wood fired hot tub and locally sourced, ethical and seasonal food hampers will add value to the offer. 

DON'T FORGET THE EXPERIENCE

Travellers are looking for authentic experiences that are hard to find elsewhere. Recently there has been a massive spike in demand for outdoor experiences, allowing people to reconnect with nature, relax and get away from it all.

Incorporating this into a glamping offer will be essential in attracting new guests and retaining regular ones.  It’s important to define your unique selling points. Competitor analysis will help identify potential gaps in the market and help you develop a pricing structure.

MARKETING

Marketing needs to be well thought out with a dedicated annual budget. If you manage your own marketing, an engaging website with a direct booking system is vital. The emphasis should be on good quality images and videos that showcase the glamping offer, as well as concise and interesting text. Social media is also key in attracting new interest and engaging with wider audiences.

BUILDING UP YOUR BUSINESS

Whatever you choose, it is important to assess the level of investment versus likely returns. Rates similar to holiday cottage prices can be achieved at a fraction of the investment. A phased approach is often sensible. Start small and expand when a satisfactory occupancy rate is achieved.

Don't forget about public liability insurance and, depending on how you operate, employer’s liability insurance may also be required. You will also need to carry out a General Risk Assessment of the entire site and a Fire Risk Assessment. 

 

Further information

Contact Simon Foster

Contact Adam Davies

Contact Savills Professional Rural services

 

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