Running a glamping site involves numerous hidden costs that can significantly impact the business’s financial health. In a recent video by Tractors & Cream Glamping, Vicki from the glamping and experiential travel channel breaks down these costs, providing a transparent view into what it takes to maintain such a business.
She discusses various expenses, including laundry, cleaning, guest amenities, and utility costs, providing insights into the financial realities of running a glamping site.
Laundry is one of the major expenses, with Vicki spending approximately £3 per dome using her own facilities, compared to the higher costs of professional services. Cleaning costs add another layer, with casual staff costing about £20 per dome.
Guest amenities like matches, fire starters, wood, and welcome treats like chocolate brownies add up to about £32.50 per stay. Although the revenue per night per dome is £110, these costs substantially reduce the net earnings.
Monthly and seasonal utilities and maintenance also contribute to the operational costs. Vicki details spending around £200 per month on electricity, £1220 per season on gas for larger domes, and minimal costs for smaller ones. Additionally, significant expenses are allocated for lawn maintenance and commercial waste disposal, which are essential for keeping the site attractive and functional.
Investments in digital infrastructure and marketing are crucial for modern business operations. Vicki’s glamping site incurs costs for a comprehensive booking system and minimal website maintenance. Marketing expenses are relatively low due to a reliance on social media and word-of-mouth, reflecting a strategic choice to avoid high commission fees from online travel agencies.
Overall, Vicki calculates an annual operational cost of about £13,000, set against a backdrop of approximately £63,000 in revenue from dome rentals, not including income from event hosting.
This financial breakdown provides a realistic picture of the potential profitability of a glamping business and the various costs that can affect its success. It’s a valuable case study for anyone considering entering the glamping industry or looking to understand its economic dynamics.