Why as a farm or land owner you should consider diversification to a holiday lodge park or glamping site

Diversification has become increasingly important for farmers and landowners in the UK. One way in which they can diversify their revenue streams is by creating a holiday park and adding glamping pods or lodges for short term rental. This can provide a lucrative income source and has a number of benefits for both the landowner and the local area.

One of the key benefits of creating a holiday park and adding glamping pods or lodges for short term rental is the potential for high nightly rates and occupancy. With the increasing popularity of staycations in the UK, more and more people are looking for unique and memorable accommodation options. Glamping is a trend that has been growing in popularity in recent years, and it provides an opportunity for landowners to capitalise on this trend.

According to the 2020 UK Glamping Business Survey, the average nightly rate for a glamping pod was £109, with a median occupancy rate of 70% and far higher for lodges. These figures demonstrate the potential for high returns for landowners who are able to create an attractive and well-maintained glamping site. This can be furthered by putting pods that are insulated and can be used year around. The survey also found that the most popular types of glamping accommodation were safari tents, shepherd's huts and pods, all of which can be easily constructed on rural farmland.

Modern designed lodges can also mean higher ROI for landowners. Contemporary designs that incorporate sustainable materials and energy-efficient technology can help to reduce ongoing maintenance and utility costs. For example, lodges that are designed to be energy efficient can save money on utility bills while also reducing the carbon footprint of the site. Furthermore, attractive and well-designed lodges are more likely to attract repeat customers, which can help to boost the long-term revenue of the site.

Another factor to consider is the rise of Airbnb and the changing expectations of guests. With the popularity of the sharing economy, guests are looking for unique and authentic experiences that offer something different from traditional hotel accommodation. Glamping sites and holiday parks offer an opportunity to tap into this trend, providing guests with a memorable and immersive experience in a natural setting, however luxury accommodation is also now an expectation and people will happily pay more for such an experience.

When considering the financial benefits of diversification, it is also important to compare the potential revenue from a holiday park or glamping site to the revenue that could be generated from selling or renting rural farmland. While rural farmland can command high prices in certain areas, it is often subject to fluctuations in commodity prices and can be vulnerable to external factors such as weather conditions and government policies. While land sales can provide a significant lump sum, they also mean losing control of the land and its future potential. By contrast, diversifying into holiday parks and glamping sites allows landowners to retain ownership and control of their land while also generating ongoing revenue.

By diversifying into a holiday park or glamping site, landowners can create a steady and reliable income stream that is less dependent on external factors.

Moreover, diversifying to holiday parks and adding glamping pods or lodges for short term rental can provide a significant boost to the local economy. In addition to creating jobs, it can also increase tourism in the area, which can benefit local businesses such as pubs, restaurants and shops. Furthermore, by providing a sustainable and environmentally friendly form of tourism, landowners can contribute to the long-term economic sustainability of the local area.

It is worth noting that planning authorities in the UK often look favourably on land diversification for holiday parks, particularly when it comes to adding attractive lodges to the site. This is because such projects can contribute to the local economy and provide a sustainable and environmentally friendly form of tourism. However, landowners should always check with their local planning authority to ensure that they are adhering to any relevant regulations and obtaining the necessary permissions before embarking on a project of this nature.

In terms of the practical considerations involved in creating a holiday park or glamping site, there are a number of factors that landowners should bear in mind. Firstly, they will need to consider the layout and infrastructure of the site, including issues such as access, parking, waste management and utilities. They will also need to think carefully about the design and construction of the lodges or glamping pods themselves, ensuring that they are functional, comfortable and attractive to guests.

Marketing and promotion are also key factors in the success of a holiday park or glamping site. With so many options available to guests, it is important for landowners to create a strong brand identity and to use effective marketing strategies to reach their target audience. This might involve building a website, creating a social media presence, developing partnerships with local tourism providers and using online booking platforms such as Airbnb or Booking.com.

In conclusion, diversification to holiday parks and adding glamping pods or lodges for short term rental can provide a significant boost to the income of rural landowners in the UK. With high nightly rates and occupancy, modern designed lodges and changing expectations of guests, glamping sites and holiday parks offer a unique and profitable revenue stream for landowners. Moreover, such diversification can provide significant benefits to the local economy and contribute to the long-term sustainability of the rural community. While there are practical considerations involved in creating a successful holiday park or glamping site, the potential rewards make it a viable and attractive option for landowners looking to diversify their income streams.

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