Camping Pods, the
future option?
It seems the days of the ‘festival tent’ has come and
gone.
For many years, the sale of cheap tents that could literally
be abandoned after use, be it at a festival, or even more sadly on a hillside,
is fading into memory.
This meant that ‘outdoor accommodation’ options reverted
back to the hired caravan, or on a greater scale, lodges.
There are other types of unit available, such as teepes and
yurts, but that discussion should be for another article.
So, camping pods. What are they and why is there such an
uptake of this option?
Firstly, we’ll concentrate on consumer expectations.
At their most basic, a camping pod is a shed whereby you lay
a sleeping mat on the floor and stay sheltered from the elements. However,
consumers are leaning towards expecting more, much more, for their money.
Your average ‘camper’ now takes along gadgets, which only a
few years ago would never have been added to the rucksack list. Now we pack our I-pads, E-readers, mobile
phones, GPS and even laptops to take on the road with us, keen not to remain
incommunicado even for 24 hours. I’m
not saying this is a bad thing, just that these are the facts of modern day
glamping.
Therefore, expectations of what are seen as basic
requirements in a camping pod have risen.
Power and plenty of sockets are now regarded as a must.
A kettle is nice.
A micro-wave? Why
not?
Heating? of course.
Comfortable mattresses? preferable.
A TV to keep up with the news/soaps and allow the kids to plug
in the X-box or similar?, looking even better.
A fridge for an evenings wine or beer? Great.
Secure doors and windows, to keep all the aforementioned
stuff safe when you go out.
Smoke alarms and carbon monoxide alarms.
Storage space for bags.
That pretty much sums up what is expected nowadays.
For the Owner.
Nobody, especially in this economic climate is able to
expand or invest without a good knowledge of expected returns. The outlay for
camping pods is varied and other considerations must be in place to allow the
installation of the pods, such as toilet and shower facilities, plus a suitable
base for laying the units on. This may be as easy as a rectangle of hardcore
rubble, or a concrete apron.
The cost outlay?
In this, I can only give numbers from my own company
perspective as I’m not privy to any other manufacturers information.
A pod can set you back anywhere from about £5,000 up to
£15,000, depending on build quality and specifications. Therefore, if you are spending the same cost
as a car, what can be expected in return?
We have found from customer feedback that majority of our
units pay for themselves within the first season to a season and a half.
Rental fees vary dependent on location, from as little as
£35 per night up North, to £70+ in the South of England.
We have seen an average of 120 – 190 nights per year
occupancy on our particular units. So,
at a middling price of £45 per night at 155 nights, expect a return of £6,975
per season. £7,750 at £50 per night.
If you are lucky enough to be on a high footprint walking
route or holiday destination, you will likely have a higher occupancy take
up.If your pod has high insulation properties, your season can easily be
extended into the cold winter months, unlike many other facilities.
We have customers who will close their hostels during winter
due to low occupancy not covering heating costs, yet still receive income from
their pods due to the very low running costs.
We use 2 analogies for ‘cost out to cost in’.
A taxi, will cost the same as a pod. However, once council
inspections, fuel, tax, drivers wages, control room operators, maintenance etc
is taken into account, a return on a pod is looking very good, especially as
maintenance and running costs are minimal. Yet, taxis are a viable business
option….
Another example we use, is should you purchase say, a flat
to rent out, at a cost of £100,000, You should realise a rental income of circa
£450 per month (here in Scotland )
Now, were that £100,000 used to buy 10 pods, should you get
just 13 nights occupancy at £45 per unit per night in a month, you are
exceeding your annual house rental income, so if you get your 120+ days…well,
the numbers speak for themselves.
Of course, a pod value will depreciate, unlike a house,
which even with market fluctuations will always eventually increase in gradually
in value, but taking income over a 5 year period on a batch of pods is still a
very attractive prospect as it is providing a ‘living wage’ and not just a
‘cover the costs’ income.
