With the holiday market booming in the UK, there has never been a better time to invest in a holiday lodge in the South West. Holidaying at home couldn’t be easier. Instead of facing passport renewals, changing currency, flight cancellations, entry restrictions, and airport cues, a holiday closer to home becomes much more straightforward. Suddenly, luggage allowance is only limited by the amount you can fit in your car, planning can be weeks or days in the making, and you can even bring your dog.
Without all that unnecessary hassle, it’s no wonder Brits are turning to the great staycation! According to Visit Britain, 61% of adults surveyed in March 2022 said they would take a staycation at some point before February 2023, compared with 44% planning to take an overseas trip in the same period. The trend toward UK travel is not slowing down despite the easing of Covid-19 restrictions. The only challenge now is finding available accommodation.
With the increased demand, it’s unsurprising then that many people are considering this an area of investment. Read on for our top 5 tips on things to consider when in investing in a holiday lodge.
It’s important to look at the park and make sure it has plenty of facilities. This will make it appealing to a wider audience while increasing your earning potential. Good questions to ask could include: Does it have a leisure complex? Are there any swimming pools and or playgrounds for children?. Many parks have access to gymnasiums, spas, nature trails, fishing lakes, horse riding, daily shows and entertainment. Has it got a good restaurant or bar? Is the park dog friendly? Has the lodge got any additional features that make it stand out from others?
Location is everything. It is important to have a look and see what’s on offer in the local area. Ask yourself if the park is located in a nice area close to local amenities. Are there places of interest nearby? Is there beach access or a good selection of local beaches? Are there activities for your holidaymakers to do, such as visiting nature reserves, parks and attractions? Are there neighboring shops and local restaurants? If the location ticks a lot of these boxes, you’re going to get a lot more bookings.
As with any investment, profitability is key and buying a holiday lodge is no different. It’s important to check all of the running costs before making a purchasing decision. Look out for site fees, sewerage rates, electric and gas options. Some parks will have gas bottles and some will have piped gas which are metered. In this instance, you only pay for what you use. Parks may also charge for park passes for guests. The devil is in the detail as they say and every park is different. Being on top of these things can make or break an investment.
There are two ways to approach lodge management. Firstly, you have the option of organising the bookings and cleaning yourself to maximise the revenue. Or, if you would prefer, to have it all managed for you, many parks offer a booking service so you can concentrate on other things while they take care of everything for a fee. This can be an easier option for those who don’t have the inclination or time, as the marketing, customer service, cleaning and up-keep is fully managed for you. Additionally some parks use booking agents such as Hoseasons who can help to boost sales.
Most lodges have a licence period at the time of sale. So when looking at the investment potential, it’s important to factor this in. The holiday lodge will still have a residual value at the end of term and can be part exchanged or sold off site.
Now you know the facts, here’s the best bit, buying a holiday lodge is much more than just a great investment. The lodge can generate revenue to cover the costs and pay for your family holidays too.
Don’t forget, the better the location, the more attractive your lodge will be to a broader audience, thus generating more income than it would from a more basic offering. If in doubt, most parks should be able to provide a summary of bookings so you can choose the best location.
Hot Tip: Westcountry Resorts has an investment opportunity for sale at Holmans Wood Holiday Park, sister park to Finlake Resort and Spa. The Carnaby Hainsworth holiday lodge has a proven track record of bookings, has advanced bookings and a healthy profit. For more information, please contact us here or call 01392 271 222.