London, United Kingdom (PRWEB) June 20, 2013
Despite the recessionary economic problems that have gripped the United Kingdom, caravan and camping sites have proved more resilient than other tourist accommodation segments. The industry did not escape the effects of the recession altogether, since revenue declined sharply over the two years through 2009-10. According to IBISWorld industry analyst Temitope Onabanjo, “post 2009-10 activities bounced back and the Caravan & Camping Sites industry has benefited from greater demand from cash-strapped families as well as a reduction in tariff prices by operators to boost demand”. Over the five years through 2013-14, revenue is anticipated to increase at a compound annual rate of 1.2% to £3.3 billion.
The economic downturn has forced many consumers to reconsider their holiday plans, and some have chosen to forgo this luxury altogether. However, some families have opted for a 'staycation' and chosen to stay in Britain rather than travelling abroad. Instead, many have made trips to domestic campsites or holiday parks, so demand for industry activities has slowly risen. This is expected to continue into 2013-14, when revenue is projected to rise by 2.3%. Some operators have done well out of the influx of international tourists during the 2012 Olympic Games. Demand for pitches at sites close to Olympic venues was higher during these periods. Profitability, although healthy, has declined slightly because high competition has limited tariff increases. Several larger firms have invested more in their infrastructure and park facilities, which has eaten into their profit margins in recent years.
Over the five years through 2018-19, industry revenue is expected to continue to grow. Onabanjo adds, “in the short term, constrained incomes and further austerity measures are likely to keep prompting families to opt for cheaper holidays, which should benefit industry operators”. In the long term, the continuous development of sites and facilities, coupled with the slow improvement of economic drivers such as spending and confidence, are expected to keep guests coming back. The rise of the 'glamping' trend may also open new markets for industry operators.
The Caravan & Camping Sites industry has a low level of market share concentration with IBISWorld estimating that the four largest industry operators control less than 25% of the total industry. The low level of concentration is largely due to a significant number of small businesses and the fragmented nature of the industry. However, some larger companies are accumulating caravan park sites in good locations to redevelop into tourist resorts. Major companies include Bourne Leisure Holdings and Park Resorts UK.
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 campsites, caravan sites and recreational camps. The industry does not include the provision of accommodation at youth hostels or mountain refuges.
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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