Both the holiday park and marina sectors have proven their resilience during turbulent times. The operating models are very similar and there are clear synergies between both sectors. With continued strong demand for holiday parks, operators could benefit from the diversification into marinas.

The marina sector has a fragmented ownership structure, with most independently operated as private or family businesses, often as a lifestyle choice. Multi-site operators form perhaps around a dozen significant groups among the UK’s circa 570 marinas. This means that operators looking to expand will  likely only find individual sites to acquire, versus the holiday park sector, which is now dominated by multiple site owners.

Marinas can broadly be split between coastal and inland. Based on a recent study published by The British Marine, inland marinas account for around 47 per cent of marinas, but only around 37 per cent of berths, with an average of around 130 berths each. Inland marinas are increasingly characterised by a diversified business model and commonly include some level of holiday park offer, in the form of static caravans, lodges or touring pitches. Some of the group operators favouring this diversified business model include Aquavista, Tingdene, Lakeland Leisure and ABC Leisure. 

The reasons for the integration of holiday parks and inland marinas are twofold; for customers there’s the convenience of having somewhere close by to stay if they own a boat in the marina, as well as it being an attractive setting for holiday makers because of the wider amenities and picturesque views. 

From the operator’s perspective, the clear operational synergies between the marina and holiday park business models present an obvious incentive for those in one asset class to diversify into the other. Where adjacent holiday parks and marinas fall under single ownership, the operator’s often able to drive higher pitch fees, while there’s also likely to be a lower churn rate - an attractive feature in a downturn.

The first key similarity is the income profile, the core element of which comprises the fixed annual fee receivable for owner-occupied moorings or pitches. A boat or static caravan/lodge owner is granted a licence in return for an annual index-linked fee: this fee provides the owner and operator with a stable, secure income stream; a natural hedge against inflation.

The second major similarity is the ability to pivot the make-up of income, depending on customer demand. In favourable market conditions with higher levels of disposable income, many operators favour a sales-led model. Currently, many operators favour a more mixed or hire fleet-led model, with lower unit sales rates offset by greater demand for short breaks and holidays.

There’s significant overlap in the skillsets of operators in both sectors, and managing operational headwinds is presently a key area of focus. Given the escalating cost and limited availability of labour, the dual-operator is more readily able to save through combining roles and flexible work arrangements in areas such as site maintenance and head office roles. Central facilities and site infrastructure are significant costs; having one set of facilities which serves both the marina and holiday park is advantageous. 

Additionally, for marina operators, the limited suitability of sites for marina use constrains the supply pipeline. This is often a reason for the diversification into holiday and residential parks, as marina group operators struggle to expand their portfolios.

From the perspective of both the customer and the operator, there are therefore a range of natural synergies between marinas and holiday parks, and we expect to continue to see operators in one market diversifying into the other in the coming years.

Further information

Contact Kay Griffiths

Sector: Marine