Owning a Caravan Park: Keep Expenses Low and Fun High
- AquaTerra Brokers
- Sep 20, 2024
- 3 min read
Updated: Oct 25, 2024
The caravan park industry is steadily growing in Australia, especially post COVID as there are many van owners now in Australia. A Caravan Park offers an excellent business opportunity for those who enjoy a dynamic and varied lifestyle.
Just as holidaymakers focus on maximising enjoyment while minimising costs, successful caravan park owners must also prioritise keeping expenses low while ensuring guests have a great experience.
Here’s what you need to know if you’re considering buying or managing a caravan park and want to ensure its success.
Why Are Caravan Parks So Popular in Australia?
In recent years, caravan parks and camping grounds in Australia have experienced significant growth in revenue. For instance, in 2022, the industry generated approximately $10.5 billion in visitor expenditure, which was an all-time high.
This robust performance is driven by increasing domestic travel, especially as more Australians are choosing caravan and camping holidays as a flexible, cost-effective way to explore the country. The popularity of caravanning and camping continues to contribute significantly to regional economies.
So, who are the main visitors choosing caravan parks over hotels and other accommodations?
They generally fall into two categories:
Holidaymakers: Families, pet owners, and those looking for a relaxing destination where they can stay for the duration of their holiday.
Travellers: Those who stop at multiple caravan parks as part of a road trip. This group includes a rising trend of “Grey Nomads,” Baby Boomers who take extended trips around Australia in retirement.
To run a successful caravan park, you’ll need to cater to guests of all ages. Keep in mind that customers tend to choose a caravan park based on three key factors:
Price
Atmosphere
Extra facilities
Focusing on these aspects will help you keep costs down while offering the kind of fun and enjoyment your guests expect.
What Makes a Great Caravan Park?
If you’re thinking about buying a caravan park, there are a few essential elements that contribute to success. Consider the following:
1. Location
Caravanners typically seek a natural environment where they can unwind and enjoy the outdoors. An ideal caravan park is far enough from the city to offer a peaceful, rural atmosphere where guests can stargaze free from city lights. At the same time, having shops, restaurants, and other amenities within driving distance adds convenience and appeal.
2. Onsite Facilities and Social Opportunities
A good caravan park offers activities that help guests experience the natural surroundings, like walking trails, cycling, or wildlife spotting. Since you’ll be catering to a diverse range of visitors, providing a mix of facilities is key.
Younger guests may prefer a swimming pool or sports courts, while older guests might enjoy activities like bingo or trivia. Families will appreciate a playground or a kids’ club. A café or restaurant is often a welcome addition for all, and a central meeting point like a clubhouse can provide a space for guests to gather and find assistance.
3. Nearby Attractions and Activities
Guests will get more out of their stay if they can explore the local area, so be sure to highlight nearby attractions, such as tourist spots in a nearby town or water sports at a coastal location. You might even consider offering guided tours or shuttle services to enhance your guests’ experience.
4. Maintenance and Upkeep
Keeping your park in top shape is crucial for long-term success. Ensure that all facilities are clean and functioning properly, landscaping is neat, and any issues are addressed promptly. Your reputation depends heavily on word-of-mouth recommendations and online reviews, making maintenance a top priority.
5. Security and Safety
A safe, secure environment is important for guests. Ensure your park is well-lit and enclosed to deter unwelcome visitors and consider employing onsite security staff. Make sure your guests know where they can access help in case of emergencies.
What Type of Person Buys a Caravan Park?
Running a caravan park suits those who love the outdoors and are passionate about delivering excellent service. Regular guests appreciate park owners who remember them and make them feel welcome. Having experience in customer service or the leisure industry is a bonus.
Managing a caravan park requires a hands-on, organized approach. You’ll need to make quick decisions and handle a variety of situations efficiently. While the hours can be long during peak seasons, the lifestyle is flexible and can be highly rewarding for those who enjoy the caravanning culture.
The financial rewards are typically moderate. After accounting for costs like electricity, water rates, land tax, and wages for staff, you can expect to earn around $80,000- $100,000 per year from managing a caravan park. But if you’re passionate about the caravanning lifestyle, it’s a highly enjoyable and fulfilling career.
Interested in Buying a Caravan Park?
If you’re considering buying a caravan park and would like more information, AquaTerra Brokers is here to help. Contact our team for expert advice and guidance on your next steps.
