Industry revenue suffers as hard times lower travel budgets
London, United Kingdom (PRWEB) May 19, 2012
During the recent recession, caravan and camping activities have demonstrated greater resilience than other tourist accommodation segments. This has been a consequence of lower tariffs and tourists trading down in accommodation due to lower travel budgets. The Caravan & Camping Sites industry has also benefited from the ongoing provision of higher quality on-site accommodation and facilities by operators.
Over the past five years, real industry revenue is estimated to stagnate, with an annualised growth rate of 0.1% to total £2.72 billion. According to IBISWorld industry analyst Craig Shulman, “this is mainly due to the recent recession experienced domestically and in many countries around the globe, which has lowered the travel budgets of both Britons and international visitors”. Rising international uncertainty and stronger than intended effects from the government's budget cuts have prolonged a trend of growing domestic tourism. Consequently, the industry is expected to achieve revenue growth of 3.7% in 2011-12.
Over the next five years, industry revenue will continue on a gradual path to recovery. Supporting this growth will be the improvement in key economic drivers such as household disposable income, the unemployment rate and consumer and business confidence. Shulman adds, “whilst the 2012 Olympic Games in London and 2014 Commonwealth Games in Glasgow will benefit those operators located in proximity to these events, the real cash cow will be the 2015 England Rugby World Cup, where plenty of travellers both domestic and international will commit to following their teams around the country and inject the industry with a substantial amount of revenue growth”. However, outside of that year, profitability will improve only gradually. Competition is forecast to remain high and this will limit operators' ability to increase tariffs, which directly affect profit margins.
The Caravan & Camping Sites industry has a low level of market share concentration largely due to a significant number of small businesses and the fragmented nature of the industry. However, it is estimated that the overall concentration of the industry has increased slightly over the past decade with the emergence of some large corporate operators and is forecast to increase further over the next five years as some major corporations move further into caravan park ownership and management, due to available high gross profit margins and the ability to harness scale economies in operations.
For more information on the Caravan & Camping Sites industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Operators in this industry provide short-term accommodation for guests in campgrounds, trailer parks and recreational camps, as well as for recreational vehicles, including caravans.
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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