Improved facilities and higher site rates are driving industry growth
Melbourne, Australia (PRWEB) May 12, 2012
Caravan parks and camping grounds are rolling out some changes. The industry has partly reinvented itself to become a more important component of total tourist accommodation in Australia. This includes improving facilities for families and other specific tourist groups with a particular focus on cabin and on-site van segments. New quality facilities are usually available at lower tariffs than competing hotels and motels, but still offer attractive profit margins. According to IBISWorld industry analyst Alen Allday, “The Caravan Parks and Camping Grounds industry survived the economic slowdown in better shape than other tourist accommodation providers, by offering a combination of low-cost and high-quality accommodation”. The provision of long-term sites at low cost helped industry revenue in the past five years when housing prices boomed and rental payments escalated.
The industry is largely sensitive to trends in domestic overnight travel and international visitor arrivals. Overall demand originating from these groups is driven by growth in household disposable income and the frequency and length of holidays taken. “The continuing escalation in overseas travel by Australians due to the strong exchange rate is also dampening domestic travel demand” adds Allday. The industry is estimated to generate $1.31 billion in revenue during 2011-12, up 1.1% for the year due to higher prices offsetting slightly weaker demand from domestic and international tourism. This growth also contributes to an estimated average annual growth rate of 1.3% for the five years through 2011-12. Over the next five years through 2016-17, total industry revenue is expected to increase marginally. Long-term site numbers and site capacity levels are expected to continue to decline at a slow, steady rate in future years. Domestic visitor numbers are anticipated to remain relatively stable, while international visitor numbers will decline due to the high Australian dollar.
IBISWorld estimates that the largest operator in the Caravan Parks and Camping Grounds industry is Beston Pacific Asset Management, while the largest member organisations (which smaller operators are a part of) are Big4 Holiday Parks of Australia, Top Tourist Parks of Australia, and Family Parks Australia. The industry has a low market share concentration level largely due to a significant number of small businesses and the fragmented nature of the industry. Many caravan parks operate on a lease basis. Although some companies are accumulating caravan park sites for redevelopment into tourist resorts, given the advantages of their geographic location, such as being close to beaches and national parks. The overall industry concentration level has increased slightly during the past five years with the emergence of chain groups, as well as leases and management agreements for major operators.
For more information, visit IBISWorld’s Caravan Parks and Camping Grounds report in Australia industry page.
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IBISWorld industry Report Key Topics
Businesses in this industry include holiday parks, caravan parks and camping grounds that provide non-residential accommodation. Holiday parks generally offer a variety of accommodation options such as motels, villas or cabins. Caravan parks provide sites for caravans and mobile homes. Camping grounds offer campsites for tents. Many businesses may accommodate both short-term guests, such as tourists, and permanent or long-stay residents.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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