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Surge in Caravan Park Revenue as Families Opt for Cost-Effective Holiday Solutions

Amid growing economic pressures, holidaymakers are increasingly turning to caravan parks as affordable vacation destinations, resulting in a substantial rise in industry revenue. 

Data from BDO indicates that between December and February, holiday parks generated an average revenue of AU$641,000, marking a 12% increase from the AU$573,000 recorded in the same period the previous year. Occupancy rates also improved, with a 2 percentage point increase to 49%.

The trend continued over the Easter holidays, which proved to be lucrative for holiday park owners. Average revenue during this period grew by 9% to AU$56,000, compared to the prior year, while occupancy rates remained steady at 76%, as reported by Commercial Real Estate Australia.

“The latest data suggests that holiday parks remain a very attractive option particularly as household budgets are tested,” said Angus Strachan, a business services partner at BDO.

Historically, the sector has faced significant challenges, particularly from natural disasters and global health crises. The bushfires of late 2019 and early 2020 severely impacted revenues, as did the subsequent pandemic lockdowns. 

However, the sector experienced a robust recovery in 2022, driven by a surge in domestic travel as overseas travel options were limited.

The geographic distribution of revenue over the summer months reveals a national total nearing AU$900 million, with an increase of 3.7% across the board, except for Queensland. 

New South Wales led with a significant AU$328 million in revenue, a 4.1% increase from the previous year, followed by Victoria and Queensland, highlighting regional variations in economic recovery and consumer preference.

In-depth analysis of occupancy rates offers insights beyond the surface numbers. While a 49% occupancy might seem modest compared to hotels and resorts, which often boast rates of 80% or higher, this figure is skewed by the inclusion of unpowered sites. These sites, which require minimal overhead but can accommodate large numbers, generally have lower occupancy rates. 

“To put things into context, in Easter, occupancy for cabins was 81.6%, powered sites were 83.2%, and unpowered sites were 58.3%,” Strachan explained.

The holiday park sector’s appeal has attracted substantial corporate investment. For instance, a park near Hastings Point on the NSW Tweed Coast was recently acquired for a record AU$50 million by Tasman Holiday Parks. 

This trend is indicative of the sector’s profitability and growing mainstream appeal. Moreover, major operators like G’Day Group and Tasman Holiday Parks have rapidly expanded their portfolios, now valuing over AU$1 billion and AU$500 million, respectively.

The Caravan Industry Association of Australia’s latest quarterly update sheds additional light on the sector’s dynamics. 

“Despite rising outbound international travel numbers, there was a small increase in overnight caravan and camping trips in 2023, amounting to 15.2 million, which is 9% higher than in 2019,” said Stuart Lamont, chief executive of the association. 

The industry is not just surviving but thriving, with dynamic pricing models and continued investment in facilities. These strategies have helped parks adjust to fluctuating demand and maximize revenue. Recent tax incentives have also spurred improvements in park facilities, enhancing the overall customer experience and boosting popularity.

Looking ahead, the outlook for holiday parks remains positive with expectations of continued demand. 

“As an industry, we are still very happy to see that Australians still love visiting their country, hitting the road and enjoying their favorite regional and rural spots,” Lamont commented. 

The sustained popularity of holiday parks underscores their role as a vital component of the national tourism landscape, offering a value-for-money proposition that is likely to retain its appeal.

The rise in holiday and caravan park revenue is a clear indicator of their growing importance as affordable vacation alternatives for budget-conscious families. 

The industry’s resilience in the face of economic and natural challenges, coupled with strategic corporate interest, suggests a strong future trajectory. Holiday parks continue to support regional economic and employment opportunities, thereby contributing to the broader economic fabric of Australia.

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Leo Starlight
Leo Starlight
April 16, 2024 12:37 pm

Isn’t it cool how more families are enjoying caravan parks during Easter? The trend towards luxury amenities and eco-friendly options is awesome. Let’s keep the good times rolling with tech upgrades and partnerships!

CarsonTrail
CarsonTrail
April 16, 2024 1:19 pm

Thinking about a budget-friendly family holiday? How about a cozy caravan park trip to unwind in nature with your loved ones? Don’t forget to snag those sweet park deals for an unforgettable vacay!

spunky1234
spunky1234
April 16, 2024 3:44 pm

Have you noticed the uptick in holiday park revenue lately? Families are really vibing with the affordable and flexible options these places offer. It’s cool to see caravan parks adapting to different tastes and budgets. The increased corporate interest shows that this trend is here to stay, making holidays more fun and cost-effective for everyone.

LuckyJaguar76
LuckyJaguar76
April 16, 2024 6:16 pm

Isn’t it amazing how caravan parks bounced back in 2022? The industry’s growth shows its strength. With big players expanding and more investments coming in, families can expect exciting holiday options ahead. I think it’s fantastic how they’re evolving to offer diverse experiences.

AprilMist
AprilMist
April 16, 2024 9:34 pm

Isn’t it interesting how caravan park revenue is booming thanks to eco-friendly practices and remote work trends? It’s cool to see how travel is evolving to meet our changing needs!

hannahbanana
hannahbanana
April 16, 2024 9:44 pm

Isn’t it interesting how families are opting for caravan parks for affordable getaways? Many parks now focus on sustainability, offering eco-friendly options. Exploring off-peak times could lead to great deals and peaceful escapes. It’s a nice way to relax and save some cash, don’t you think?

PaigeDawn
PaigeDawn
April 16, 2024 9:51 pm

Have you heard about the cool upgrades in caravan parks? Families are enjoying enhanced amenities for an awesome holiday experience. Exploring Aussie parks offers a unique and budget-friendly vacation option!

ClaytonDew
ClaytonDew
April 17, 2024 2:38 am

Can you believe how caravan parks are becoming a top choice for families? It’s amazing to see the industry boom with investments and record park acquisitions. Such a cool resurgence!

DylanSage
DylanSage
April 17, 2024 2:46 am

Isn’t it cool how families are turning to caravan parks for budget-friendly getaways these days? It’s the perfect mix of affordability and fun! Seeing more people choose domestic trips shows how beloved caravan park experiences are, even in changing travel times. It’s a trend worth joining!

Ryan Powell
Ryan Powell
April 17, 2024 4:31 am

Can you picture the thrill of a family adventure every day, surrounded by nature? Caravan parks offer a budget-friendly escape with modern amenities, creating cherished memories in Australia’s landscapes. It’s like a mini holiday where families bond amidst beauty and eco-friendly vibes. Sounds like a dream come true!

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Hi, you might find this article from Modern Campground interesting: Surge in Caravan Park Revenue as Families Opt for Cost-Effective Holiday Solutions! This is the link: https://moderncampground.com/australia/surge-in-caravan-park-revenue-as-families-opt-for-cost-effective-holiday-solutions/