Nov. 13, 2020
Have you ever considered starting a glamping business to make a fortune for the future? Glamping is a fairly low-cost leisure offering within the tourism industry and thus remains attractive to a large percentage. Although the impact of COVID-19 on disposable income over the forecast period is not known, it is seen to have not much of a change on the glamping industry. Moreover, traditional hospitality offerings including hotels, restaurants, and resorts have had a destructive impact due to COVID-19, whereas the glamping and camping industries witnessed a higher demand as they offer socially distant, hygienic and scheduled breaks away from the city.
Glamping is becoming a better tourism market in recent years, and more and more investors are getting involved in this field. It has swept Europe and the United States and quickly became popular all over the world. According to Ariston's latest survey report, the glamping market in Europe and the United States will grow at a CAGR of 12% and 15% in the next five years, respectively. The glamping business in the United States is expected to reach approximately $1 billion in revenue.
Glamping has become the new "fashion darling" of the tourism industry. In the past, it was just a branch of traditional camping. Now it has become a dominant vacation option. Many people participate in it and start to go to glamping resorts this year. For individual proprietors and entrepreneurs, this demand represents an exciting opportunity. An excellent way to earn money by renting luxury tents or purchasing glamping tents to opening glamping Airbnb, campsites, hotels, and resorts.
If you want to know how to start a glamping business and the possible income, then you must first understand the industry and the lifestyle it provides. In this article, we provide you with the most comprehensive knowledge, which will help you develop your own glamping business.
A glamping business makes money by charging guests for use of a tent. Most glamping businesses have nightly and weekly rates and they charge different rates for differently sized tents.
At least $3000 dollars.
The main cost of starting a glamping site is to buy glamping tents and land. The cost of buying land depends on the location of the glamping site. If you have your own venue, that's best. If not, please purchase those remote and scenic places, where the cost is relatively lower.
The cost of the glamping tent depends on the tent style of purchase you have. Cheap geodesic dome tents also cost at least about USD $ 1,000, and more luxurious tents cost tens of thousands of dollars.
If your capital budget is limited, so you have to strike a balance between buying land and tents.
In addition, property taxes, maintenance costs, labor costs, water and electricity costs, and some other consumption costs are all you have to consider.
Becoming a glamping host will fill your emotional bank with joy and pride as you share your property with happy glampers. But your bank account also needs to be looked after as well. You’ll need to do the math based on your unique situation to confirm that your forecasted income exceeds your ongoing expenses—anticipating a financial investment for your initial site build and asset purchases.
We’d recommend starting small for the first season, say one to three units, then growing from there. Let’s do some back-of-the-envelope math on what your ROI could be based on average furnishing costs ($1,500) and amenities ($500) when using one of our tents ($1,600).
Average nightly rental rate $125 x 55 Total nights booked = $6,875 Gross Revenue
Year 1 Gross Income: $3,275
That is for year one. Year two earnings could be much higher per tent since you don’t need to buy a new tent and furnishings, and your positive host reviews on the travel platform will hopefully help to secure even more bookings.
This is all about getting the business model and abode right in the research stage. This is as much about understanding your own lifestyle needs as a business owner and what will be loved by your customers. It is not always… go-big-or-go-home. Sometimes it’s… stay-small-and-stay-sane. The key is to choose something that suits your location, budget, and potential customers, but also that suits you. So when you begin wondering how to start a camping business and how much it might cost to set up, start by asking yourself what you want to result from your venture in terms of work/life balance and lifestyle.
It is the core work in the initial stage of research. Different business models correspond to different business ideas, and the results of investment returns will be different. The specific work of each business model will vary. The specific work of each business model will vary. Like any other business, the glamping business can be divided into the franchise, corporate, and private ownership. In previous years, the glamping business was operated according to one or more of these models. But in recent years, some changes have occurred in the glamping business, and some new business models have emerged. Read our blog "What Are Glamping Business Models" to learn more.
Now it's time for you to choose a place for your glamping tent hotel. Do you plan to build it on highlands, the Sunshine Coast, or dense forests and flat grasslands? Beautiful and unique places with convenient transportation will be the ideal place for glamping hotels.
And then apply for a land license for your glamping site. It will depend on the number and type of units, spacing between the units, washing and sanitary facilities, drainage, water, and waste systems, gas storage and fire safety, access roads and footpaths, and electrical installations. You must have planning permission for the luxury campsite before you apply for a license.
Contact your local authority and apply for any planning permissions you might need in order to start. Permissions are sometimes required but when you consider using semi-permanent tents for your accommodations, the paperwork should be much lighter than in the case of permanent structures. Please remember, that each country may review the site using a different set of criteria. These may include the type of accommodation, your location, road accessibility, traffic flow, topography, the economy size of the site, impact on infrastructure, etc.
And it will also involve environmental protection, safety regulations, and lease issues. Failure to obtain the necessary permits or licenses can result in high fines and even the termination of your glamping business. So, be sure to check with the relevant agencies in your country or region.
Also, you need to know how long it takes to get the plan permission, so as not to affect business progress. Usually, this takes 6 months or more.
Compare sizes and styles to choose the best glamping tent to bring your vision to life. Buy tents that perform well in your specific environment. According to your glamping hotel positioning and budget choose the most suitable glamping tent. Learn to know everything about these tents, including the type and style of each luxury tent, advantages, disadvantages, features, whether it is easy to assemble, and so on.
As a business owner, you want a product that is durable, easy to use, easy to maintain, and repairable. Customers look for comfort, style, and features that make it easy to crack a window in the summer or light up a tent stove in the fall. If you don’t know how to choose a glamping tent, please read the article "Glamping Tents Buyers Guide".
There are many different glamping tent manufacturers that make glamping-style tents, and glamping tents come in several varieties, shapes, and sizes. What’s more, there is a multitude of impressive features available.
So, to avoid making mistakes when it comes to choosing the best one here are things that you need to look for in a glamping tent. This should be an easy task, but do not underestimate the power that a high-quality, well-designed tent can have on the success of your business.
Once your tent kits are on their way and your location is sorted, sketch out the services and facilities that you will offer. These may include power systems, appliances, furniture, sewage systems, waste treatment equipment, sanitary facilities, and other relevant support accessories and facilities. Plan and arrange field kitchen, toilets, bathrooms, onsite facilities (if any): reception area, laundry room, game room, hot tub, swimming pool, etc.
Now it’s time to give your glamping tent some character, comfort, and charm by choosing the furnishings and decorations that you think will attract guests. Pick a design style that you’d like your furnishings to match (i.e. boho chic, country-western, rustic, elegant and modern, shabby chic, etc.) and go shopping!
Here’s a short reference checklist of other important furnishings
Wardrobe and hangers
This is the most important of the glamping business. Although we have a case reference above, you still need to do a lot of research to evaluate your benefits. After all, you need to get income.
The startup cost of a glamping tent hotel is high, it is mainly spent on purchasing land and tents. There are also the operating costs of the tent, including property taxes, maintenance costs, employee salaries, utilities, etc. These are investment costs, and you have to keep statistics.
Then think about how much profit you want to get from the glamping business. How much do you plan to charge your customers per night to achieve the fastest return on investment?
What kind of crowd want to check into your glamping hotel? Your customers may include families, couples, individuals, businesses, organizations, etc. Before starting your glamping business, you need to consider what groups you serve, what type of tent accommodation these customers like, and what they expect from a glamping hotel.
The glamping business plan looks so attractive. But after all your preparation work is done, you should consider how to let people know that it exists. Promote your glamping residence to attract your target customers. Most of your marketing activities should focus online.
There are multiple channels on the Internet to expose your glamping tent hotel to people.
Establishing your website is an option. A business website can enable customers to learn more about your glamping site, the services you can provide, and other information.
Booking platforms like Yelp, Airbnb, Booking.com, Glamping Hub, Cool Camping, and others are also one online marketing way you can choose from.
Don't forget to use social media to promote your glamping business. Promote your glamping business on Facebook, IG, Tiktok, or use other social platforms.
Another way is joining professional glamping directory sites that have experienced teams and huge traffic, to help you attract more customers.