New research has found that the UK’s 100 largest caravan and camping parks reeled in £2.67bn in 2016 – and that holiday parks large and small are anticipating a rise in so-called ‘staycations’ in coming months, following recent falls in the value of sterling.
The news follows a flurry of private equity and mergers and acquisition (M&A) deals welcomed by the sector in recent months, including the £1.25bn sale of one of the UK’s largest caravan park operators, Parkdean Resorts.
John Salisbury, managing director of property firm Ortus, which carried out the survey into holiday park success, said that the sector should be eyeing-up a bright, competitive future.
He said: “The recession and the ensuing trend for staycations [has given] holiday parks, camping and caravan sites access to an even broader customer base. They have been building on this ever since… combining value for money with high-standard facilities to maximise the guest experience”.
However, he added that parks would need to adapt to changing trends in order to “maintain competitiveness and stay ahead of the game” – but that businesses should embrace this need for constant evolution as an opportunity as opposed to a burden.
“As the market increasingly demands not only well-maintained everyday amenities but luxury add-ons like wood-fired showers, pools, games rooms and Wi-Fi, this opens up significant opportunities to generate more revenue and fuel growth,” he said.
At Milsted Langdon, our tax specialists have many years’ experience supporting and advising businesses in the holiday and caravan park sectors. We can help caravan and holiday parks maximise their profitability, minimise their tax burden and explore potential opportunities for growth and expansion. For more information about our sector-specific services, please contact us.