Caravan Park profit driver for profit is the parks occupancy rate.
Do you know what your tourist park breakdown of visitors is each year?
How often do you monitor your occupancy rate and the trends for your accommodation needs?
Understand why customers stay at your park
Studies have indicated that demand for tourist park patronage is mainly that from the domestic market. This will continue given the Covid situation with our borders currently closed.
• Couples and Singles: Domestic travellers aged under 35 currently represent 12% of the domestic caravan park accomodation
• Families travellers aged between 35 and 55 now account for 33% of the sector. Mainly from the domestic market
• Grey Nomads: These travellers are over age of 55 and accounts for 50% of the travel domestic caravan park patronage.
Domestic caravan and campers in 2018 are believed to have undertaken over 11.9 million trips. That’s results in campers staying 51.9 million nights. in caravan parks. In 2019 this again increased by 6.5 % Overall, caravan and camping visitors now spend more than $8.6 billion annually on camping. # Per Caravan Industry Association of Australia, Caravan and Camping State of the Industry, 2018.
Market segments understand your unique break up of accommodation options!
Understanding how these market segments impact on your park usage , revenue and caravan park profit.
Better focus on your occupancy rate is an essential aspect of recreational park planning. Seasonal factors such as tourist events and weather also need to be factored into your planning.
Each market segment have a different requirements and impact on your revenue streams
Caravan park management and customer satisfaction helps increase occupancy rate. Do you survey your customers after they leave you?
Understand your market segments
Typically the under 35 markets predominately are campers. They may not be utilising Cabins. However many parks are providing upmarket experiences are fighting back for the market disrupters such as local B & B’s as they provide glamping experiences for young couples. Theses glamping experiences are tapping into a new market
Whereas your younger families prefer cabins for easy use of the accommodation.
The newer cabins are being placed at the front of the park to attact new customers . Many Australians are spending more time in Caravan parks during a time where overseas travel has become prohibitted.
The grey nomad markets will choose long term powered sites. Time is something they have and many live on retirement incomes not always focused on high value spending.
Time to review your Parks revenue streams and start planning for 2021 and beyond.
Using your caravan park management or accounting software will allow you to design and predict future income streams . These income streams can be classified for various income classes for park fees. It is crucial for you to understand your park numbers.
Your Caravan Park Profit will be partly based on your occupancy rate and how you manage to increase your average site sale.
You must include analysis of seasons, repeat customers and future capacity and peak times. If your park is considering planning new accommodation options, we can assist you with financial modelling in this area.
Another way to manage revenue is to manage your channel partners.
Peak and non peak periods
Occupancy rates can fluctuate to above 100% and over capacity during peak time. And obviously a lot lower during winter times. Manging this with the right pricing and special deals like 3 for the price of 4 nights to entice campers to patronise the site usage in non peak times. These measures will help increase your overall occupancy rate.
Caravan Park management software is crucial
If your park is associated with a park chain such as Big 4 or Top Tourist, you will be obtaining bookings directly from their sites. Software like RMS can manage your channel partners such as bookings.com, Expedia and other sites. Utilising real-time bookings help you maximise your bookings and revenue streams.
As the summer season is upon us understanding your revenue streams, park accommodation capacity and ultimately future earnings will be crucial to managing your cashflow
We assist small business in monitor their cash and financial ratios and happy for you to reach out and discuss with you your needs. Please reach out. Over the years Geoff and his team have helped much small business hospitality and leisure business. Geoff has a passion for camping and regularly travels with his family to country caravan parks across Australia . He understands first hand what issues owners often face when running their park.