Upgrade & Reposition: Pricing Considerations for Your Next Holiday Park Upgrade 
By IDeaS
Wednesday, 10th April 2024

When running a holiday park or camping ground, it can seem like there is never a good time to undertake major renovations.

Physical upgrades are costly and can result in the park's full or partial closure. Unfortunately, there is no easy way to avoid substantial property updates in the longer term, especially if an owner wants to ensure their property competes with newer holiday parks, resorts, and Airbnb properties.

The bottom line is that all holiday parks need an upgrade at some stage. This requires careful planning that involves more than just architects and construction teams.

Many factors can drive holiday park renovations: if new properties are entering the market and creating additional competition or if an owner thinks their cabins and shower blocks look out-of-date. Really though, major building works should be undertaken when a property needs to be upgraded to maintain its revenue and defend its market share.

Before beginning any building program, holiday park owners need to understand their place in the market, their demand by inventory type, their online reputation, their current competitor set and their aspirational set.

It is not enough to consider how building disruption will impact business and online reviews in relation to their existing competitor set. Any holiday park that’s planning renovations today while rebranding its image will need to compare prices to future and aspirational competitors as part of the repositioning process.

One of the biggest choices a holiday park owner must make relating to a renovation is whether to partially shut down the property, stagger building works and trade-through or undertake a complete closure.

The answer to which approach is best for a property relates to whether your holiday park needs to maintain a short-term cash flow, in which case a partial or staggered renovation is probably the best choice. However, if a property owner’s focus is long-term revenue or reopening to reposition the property at a different service and price level, a full shutdown may be the better approach.

There are downsides to both full and partial shutdowns. A partial shutdown can lessen brand prestige as guests have to stay at incomplete sites (and experience inconveniences like a long walk to the only open shower blocks). In contrast, a complete shutdown halts revenue and can result in high-performing staff leaving for competitors.

To assess which strategy is best for a holiday park’s renovation, property owners should run A/B testing to understand the displacement caused by a renovation and accurately weigh the cost to the business.

New shower blocks, outdoor activity spaces, cabins and shared dining facilities created through major renovations can help a holiday park attract new business due to positive guest perceptions and online reviews. Advanced revenue technology supports holiday park owners by helping them more effectively plan and realise the full benefit of any property upgrade, including raising rate premiums to support sustainable long-term revenue growth.

For more information on how your holiday park can realise the pricing benefits of significant renovation works sooner, please visit here

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