Camping Caravans Holiday Parks Clearthought
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Consumer Insights from Clearwater International clearthought Camping, Caravans and Holiday Parks Holidaymakers' increasing attention to comfort and quality are driving significant growth in the outdoor accommodation industry Bright horizons Demand for camping, caravans and holiday parks remains strong in Europe, particularly in the key markets of the UK and France. Consumers are seeking more regular breaks, enjoy being closer to home, and value a safe, relaxing, outdoor family environment. With strong potential cashflows, the outdoor accommodation market is an attractive space for investors. The European outdoor accommodation market is the second largest in the world after Pitches breakdown by country 1 the US, with up to three million pitches at around 29,000 campsites . in Europe (%) The market comprises of a wide range of businesses including independent site operators, small private groups, major holiday home companies and large tour operators. There are a variety of accommodation types offered to the consumer including a pitch for your own tent or caravan, pre-erected tents, caravans and lodges. Specifically, the 20 European market is largely focused on the following three business models, with some 27 operators using different models for different areas of their sites: 4 8 Holiday accommodation and land ownership combined: These operators own both 10 19 the land and the accommodation. Accommodation is rented to consumers for holidays 12 and short breaks. Operator-owned holiday accommodation, separate land ownership: These operators own the accommodation which is rented out to consumers, but rent the land. Partnerships France Italy are agreed between the land owner, who charges a rent, and the operator, which places its UK Spain own accommodation on the site – typically with a contract of up to seven years. Netherlands Others Land ownership with sold accommodation: These operators sell accommodation Germany to customers who may then have the right to rent the accommodation out themselves or through the park owner. Park owners will typically also provide financing for sales SOURCE: Global Market Insights and maintenance to the accommodation. 1 Fédération National de L’Hôtellerie de Plein Air clearthought | 2017 Consumer Insights from Clearwater International Market drivers There are a number of trends in the market which are driving growth: • Brand development - operators want to both improve the quality of the holiday experience and increase direct sales in order to enhance margins and reduce reliance on third-party booking agents • Premiumisation – operators are improving the quality of the accommodation and experience. For example, in the UK many parks are increasing the availability of lodges compared to caravans Online is an increasingly important channel for the • Environmental - holidaymakers are outdoor accommodation industry across Europe. seeking vacations which are nature- friendly and offer a sense of freedom for families Across the wider tourism industry, online across western Europe has doubled to booking capability is essential and is around 550,000 over the past five years, • Frequency – consumers are seeking particularly high in the UK with the rest while the upgrading of the market towards more regular holidays or short breaks. of Europe now also catching up. 3*, 4* and 5* sites is expected to continue. Owning a holiday home or taking more Given that just a fifth of people have ever regular holidays is driving demand Resilience spent a vacation in a mobile home, the potential for future growth is clear. • Value for money - consumers want The market has proved resilient through comfort and quality at reasonable prices the economic downturn. While some Meanwhile, the market remains fragmented and mobile homes and lodges can provide areas such as caravan and lodge sales with many sites individually owned by this. For those seeking a holiday home for were admittedly affected by the recession, independents or small groups. This creates more frequent holidays, a mobile home or holiday parks in general were viewed as significant opportunities for continued lodge can offer significantly better value good value. Even during the height of the consolidation. Investors are drawn to the than purchasing a property economic crisis, the European sector kept market for buy-and-build opportunities as • Range of services - sites are increasingly on increasing sales while overnight stays evidenced by the number of private equity providing a full range of leisure and social and occupancy rates also increased. backed operators in the market which are acquiring additional sites. activities with demand particularly strong Driven by continued strong demand, we for high-quality swimming pools, water estimate that the number of rented pitches parks and sports facilities. With these facilities on site, and some included in the cost of the stay, holiday parks become The increase in internet sales more attractive destinations Tour operator/ 5% • Regulation – while this varies between travel agent Indirect 10% 5% 10-15% countries, regulation regarding mobile Mobile home home installation remains quite flexible operators 10% 15-25% across Europe, driving further growth Internet 10-15% in the market 20-30% Internet Online is an increasingly important channel 30-35% for the outdoor accommodation industry Direct across Europe, although until quite recently many independent players, especially smaller Offline 65-75% operators, were rather unsophisticated in 50-60% their approach. 35-40% That is now changing fast with major camping, mobile home and lodge groups using their market strength to develop 2005 2010 2015 powerful internet marketing strategies in order to gain customers and limit the power of online booking engines. SOURCE: Roland Berger clearthought | 2017 Consumer Insights from Clearwater International Country breakdown France UK Rest of Europe The outdoor accommodation market Underpinned by a strong culture to buy In Germany the market has been growing remains one of the most popular holiday second homes, improved access to credit, steadily over the past decade with annual options for French people, while southern and continued consumer confidence, the growth rates5 of around 6% since 2013. France also attracts many tourists from UK outdoor accommodation market has The country has nearly 2,900 campsites northern Europe (the sector representing performed particularly well over recent and the most popular camping destination close to half of the available tourist beds). years. On top of this, the ‘staycation’ trend is Bavaria which recorded more than has been a particularly influential factor 5 million overnight stays in 2015, followed France is the largest and most active in driving the market’s growth. by Mecklenburg-West Pomerania market in Europe and second only to the (4.6 million) and Lower Saxony (4 million). US globally, with well over 8,000 campsites For instance, the number of trips taken The home market is particularly strong with (representing around 30% of European domestically by UK residents soared from German citizens accounting for 85% of campsites) and almost a million pitches. 50.4 million in 2008 to 57 million in total overnight campsite stays in Germany 2 2013 . This was initially in response to the in 2015. Like elsewhere across Europe, accommodation economic downturn, but has since been is being extensively upgraded as part of driven by trends such as the desire to take The market remains very fragmented with ambitious investment programmes by major more frequent and shorter breaks, and only a small number of players operating players, thereby improving the image of heightened security concerns over taking multiple campsites. As such, most of the camping and caravanning. Such investment holidays abroad. Wealthier families are campsites are still family-owned, and in a wide range of facilities and services also increasingly attracted to the camping despite the very attractive industry trends also attracts wealthier customers who are market with luxury yurts and safari tents not many consolidators have entered the increasingly entering the market, and top end becoming popular options. market yet. campsites are the fastest growing segment within the sector. Total consumer spending on outdoor In Spain, there are distinct site categories accommodation holidays is estimated at ranging from ‘Grand luxe’, which have a full In recent years, the number of campsites £2.2bn3 and grew 4% in 2015. In total, range of modern facilities, through to has actually slightly fallen due to the UK residents took 102.7 million overnight a decreasing - yet still significant - number increasing ‘professionalisation’ of the market trips in England in 2015, totalling 300 of ‘third’ category sites which offer more and the elimination of weaker performing million nights away from home, with an basic accommodation and facilities. sites. However, demand for outdoor expenditure of £19.6bn3. The number holidays has been increasing (+5.5% CAGR of domestic trips was 11% higher in 2015 Approximately 44% of overnight stays between 2005 and 2013 for the number than in 2014. are made by non-Spaniards, with French of overnight stays), reinforcing the positive visitors particularly prominent. Estimates tension between supply and demand. Last year’s Brexit vote could further suggest the industry had its strongest consolidate these trends, particularly if summer for a decade in 2016 with an The rise in the premium segment also means sterling remains