Open Air Business June/July 2017

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GLAMPSITES <strong>Business</strong> Models Kate Morel investigates the various ways to set up a glamping business. From a 28-day pop-up site to a multi-million-pound resort, read on to find out which would suit you GETTY IMAGES ONE OF THE subjects that Tally wanted me to cover this year was ‘glamping business models’, and I agreed that it would be a good topic, because it certainly attracts a lot of interest. The seminars I gave on this subject last year were incredibly well attended and I was asked for more copies of the presentation than any other (or maybe that says something about the rest of my presentations?). Glamping, like any other business can, in essence, be divided into franchise, corporate, and private ownership, all of which can operate to one or more of several models, but boundaries can be blurred. Since my 2016 presentations, I’ve spotted a couple of variations, a totally new model, and even come up with one of my own (which I’m hoping to trial next year, so stay tuned). Writing this has been rather like herding cats, but I believe the resulting piece covers at least the most commonly employed, and viable, glamping business formats. FRANCHISE As you’re probably already aware, this business arrangement involves an existing established brand selling a license to a third party - person or company. This third party then trades and operates under their brand name and logo, employing their prescribed model of operation. It’s a very common model and our high streets, shopping centres and motorway service stations are full of them. 1 One such glamping franchise model operates to the standard format – it requires the landowner to pay an initial fee, to buy a minimum number of their structures, and pay an ongoing monthly commission. In return, the franchisee landowner can operate under the company’s trademarked name and logo, is provided with a website and booking system, and receives ongoing support from the franchisor. For example, Wigwam Holidays. 2 Another franchise model offers the same, however it doesn’t require an initial fee or the compulsory purchase of structures, but there is a trade-off in commission. If the landowner buys the structures they pay the franchisor a much lower commission than if the franchisor had provided them. To be considered for this kind of franchise, both land and landowner must meet a strict list of qualifying criteria. For example, Featherdown Farms, Lanterns & Larks In all cases the landowner is responsible for on-site operations and change overs. A franchise is a good option for those who want to set up glamping but don’t have the time or resources to go through the whole process, or don’t want to invest in structures and glamping outright. Terms and a minimum lease period will apply. RESORT DEVELOPMENTS These are usually owned by very large businesses or corporations, and involve high numbers of units, with the same (or very similar) design scheme throughout. Features such as club houses, restaurants, pools, activities, gyms and spa facilities, are essential to this model. Given the multi-million pound level of investment in these developments, a high unit count plus strong ancillary revenues are the only way to ensure viability and deliver a sufficient return. For example: Love2Stay in Shropshire. PRIVATE SME The majority of dedicated glampsites in the UK are privately owned by individuals, couples or families who had land and decided to diversify, or have purposely bought land to start a glampsite. This is the original small-scale, grass-roots glamping format, and can obviously incorporate any number of the models of operation as listed below. Both resort and private glampsites can incorporate one or more of the following models of operation, (for franchises, not so much, it depends on the lease agreement): WWW.OPENAIRBUSINESS.COM 27
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Page 5 and 6: ADVERTORIAL Glamping - What’s Bee
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