Glamping

www.microlodge.net

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.