Updated: Apr 1, 2021
If you are thinking about starting a new glamping site venture. Then, I am sure that you have done your research thoroughly? There are so many options to choose from whether you go for Pods, Domes, Shepherds' Huts, or Tents. There are the other legal legislations to overcome as well on top, it's not a simple as putting up a pod and that’s it.
There are many other capital costs you will have to find at the beginning.
Shepherds' Huts can sell for anything between £30,00 to £60,000 and pods start from around £12,000 up to £45,000. Then with all the planning applications, licenses needed, furniture, drainage, hard bases, and utilities you will need. You won't have much change out of £150,000 to £200,000 for small glamping setups, of say 3 units. Once you are set up you then need to look at how long the season is? I would say 6 months is a good place to start maybe a bit longer if you are near a popular tourist destination. But if we use 6 months in terms of the calculations for now.
If we take the average nightly charge per pod for 4 people being £150 then we can work from this figure. Obviously, there are cheaper and more expensive pods.
So to work out how long it will take to pay off your investment. Taking shepherd's huts as an example. So, if you have 3 shepherds huts your initial outlay may be anywhere between £120,000 to £200,000 pounds
In order to pay back your investment with a nightly rate of £150- and 6-months full occupancy. It would take TWO AND A HALF YEARS to give you back your (ROI) return on investment. Firstly 6 months at full occupancy, would be a challenge for any new site. I have been very optimistic indeed. So you will see it’s a long-term investment and commitment.
However, if you were to invest in three 5m Pro Bell Tents from The Vintage Tent Company along with Coir Matting, 3 Wood Burning Stoves, and a Composting Loo and LPG shower unit you are looking at an investment £8000 pounds.
Then there might be some planning, furniture, and water supply (hose) you are good to go. So, let's say the total investment is £12,000 and that is very generous to get the best set up possible that would command a higher nightly rate of £100 to £150.
If we use the same calculations above this is how long it will take to pay off the total investment. At the average nightly rate of £120 per tent.
33 DAYS or on Month, not 2.5 years. You will be in profit in your 2nd month.
You can close for winter and store the tents, or better still sell them for 50% or take our buy, back pledge after the season, and then your ROI is less than 28 days.
We at The Vintage Tent Company have created a small glamping site bundle for £7500 which gets you 3 Bell Pro Bell Tents, Three Stoves, Coir Matting and our Amazing LPG shower unit and our composting toilet. There is no quicker way or easier way to return your investment back and make profits than with one of these setups.
If after a year, you do not like the glamping business, then there has been no drastic capital outlay for you. However, if you have invested £150,000 you are stuck with those pods for the foreseeable future. Maybe the best way is to try this first before spending too much capital or doing it side by side. For any other further advice or help from The Vintage Tent Company or Ensuite Onsite or our glamping partners please do get in contact with us straight away.