Economic Impact of Various Camper Groups on Campsite Finances
Do holiday campers subsidise long-term camping rates and allow campsite owners to offer lower rates to long-term and pensioner campers?
This question comes up repeatedly in camping groups on social media.
After I was taken to task in a Facebook Group in May 2022 when I referred to weekend campers as “campers with thick wallets and wet feet”*, I decided to talk to camping ground owners and managers wherever we camped.
What I found in my discussion with campsite owners and managers over the past 16 months we have been camping full-time became this article.
In the business of camping, different camper groups play distinct roles in contributing to the financial health and operational continuity of campsites.
In discussions with various campsite owners and managers, it becomes evident that each group, whether they are weekend and holiday campers or long-term and pensioner campers, provides unique benefits that are crucial to the overall functioning of the campsites.
I couldn’t find formal research on the subject, presumably because the phenomenon of long-term camping at the scale it has reached by the time of writing this blog post is fairly recent, and does not yet warrant research.
Breakdown of Campsite Contributions by Camper Group
First, let’s establish a framework to understand the financial contributions and characteristics of different camper groups based on annual data:
| Camper Group | Average Stay Length | Special Rates Offered | Percentage of Total Income | Primary Contribution to Campsite |
|---|---|---|---|---|
| Weekend Campers | 2 nights | Minimal discounts (2% of income from such deals) | 77% | High turnover, significant revenue during peak times |
| Holiday Campers | 14 nights | Same as weekend campers | Included in 77% | Major revenue during seasonal peaks |
| Long-term Campers | 29 nights | Yes (Pensioner rate) | 23% | Consistent income during off-peak times, helps smooth income fluctuations |
This data indicates that weekend and holiday campers, while staying shorter periods, contribute the vast majority of total income due to higher rates and larger numbers.
In contrast, long-term and pensioner campers, although contributing less in terms of total percentage, provide a stable income flow during traditionally lower occupancy periods.
Advantages of Diverse Camper Groups
Each camper group brings specific advantages to the campsites:
- Financial Stability Across Seasons: Long-term and pensioner campers contribute during off-peak times, which helps stabilize the income and allows for more predictable financial planning.
- Employment Continuity: The steady demand created by long-term campers allows campsite owners to maintain a permanent staff, reducing turnover and retaining experienced workers.
- Infrastructure Investment: Continuous income from long-term stays can be reinvested into improving the site’s infrastructure, such as paving camping spots which in turn may attract more campers, including the lucrative weekend crowd.
Cost Considerations Across Camper Groups
To fully understand the financial dynamics, one must also consider the costs associated with hosting each group.
Here are some key operational expenses campsites incur:
| Expense Category | Description | Impact by Camper Group |
|---|---|---|
| Accounting and Auditing Fees | Fees for bookkeeping and audit services to ensure financial compliance | Consistent across all groups, essential for managing finances regardless of camper type |
| Advertising and Marketing | Costs associated with maintaining a website, booking services, and social media presence | Higher for attracting weekend and holiday campers due to the need for dynamic marketing strategies |
| Bank Charges and Payment Processing | Fees associated with handling payments and bank transactions | Proportional to the number of transactions, likely higher with more short-term campers |
| Consumables | Includes cleaning materials, toilet paper, gas, etc. | Higher with more frequent turnover of campers, notably weekend and holiday campers |
| Consulting and Professional Fees | Expenses for labour consultants and attorneys | Steady, but may spike with legal or compliance issues, unrelated to camper type |
| Commission Fees | Commissions paid to booking platforms like Booking.com and Lekkeslaap | Higher for weekend and holiday campers who frequently book through such platforms |
| Utilities and Municipal Rates | Costs of electricity, water, waste removal, and sewerage management | Higher with greater occupancy and facility use, particularly by short-stay campers |
| Insurance and Security | Costs for insuring the property and liabilities; expenses for security measures like lighting and power backups | Consistent necessity but may increase with higher foot traffic and facility use |
| Maintenance and Repairs | Regular maintenance of buildings, camping spots, and recreational areas | Continual but can increase with higher usage rates by weekend and holiday campers |
| Salaries and Wages | Payments to both permanent and seasonal staff | Higher when maintaining full staffing year-round, supported by steady income from long-term stays |
| Telecommunications | Costs related to Internet, landline and mobile phone services | Generally consistent, but necessary for booking and management communications |
| Membership Fees | Fees for tourism organizations, guest house guilds, and accommodation associations | Fixed costs that support business operations and network presence |
- Weekend and Holiday Campers: These groups tend to increase variable costs such as consumables, utility usage, and commission fees due to their shorter, more frequent stays and higher turnover. They require more intensive marketing and operational efforts to attract and manage.
- Long-term Campers: This group contributes to a stable base of income that supports fixed costs such as salaries, maintenance, and memberships. Their extended stays mean less frequent turnover, which could potentially lower some variable costs like booking commissions and utility spikes.
Conclusion: The Interdependence of Camper Groups
What most campsite owners and managers agreed on, was that the question is not whether one group subsidises another but whether each group’s contributions are indispensable to the campsite’s operations.
The evidence suggests that the diverse needs and contributions of both short-term and long-term campers create a balanced ecosystem that supports sustainable business practices for campsites.
Rather than viewing these groups in terms of financial cross-subsidization, it’s more productive to see them as complementary components of a holistic business model.
Final Thoughts
Campsites benefit significantly from a business model that embraces diversity in camper demographics.
The synergy between short-term high revenue and long-term stability plays a crucial role in maintaining the financial health and service quality of camping sites.
Thus, it is not only advantageous but essential for campsites to cater to both holiday/weekend campers and long-term/pensioner campers.
Notes:
- Thick wallets referred to the fact that weekend campers tend to spend more often as they usually have kids.
- Wet feet refers to weekend campers who sometime walk out of showers without drying their feet. Long-term campers are more focused on leaving ablution facilities clean because they identify more with a place where they spend months at a time.
At a KZN camp where we camped, a long-term camper asked a weekend camper if he would use the mop and dry the shower cubicle after he showered. The reply was: “I am not black”. This is not generally the attitude. Most weekend and holiday campers leave the ablutions in the same condition as they found it.
It is clear that, rather than to compare groups of campers, it is more productive to approach them all as necessary for a modern campground to function financially at its best. Even if some groups have thick wallets and wet feet! 🙂
Most owners of camping resorts who I approached were most welcoming and shared information about running their campsites. I appreciate their contribution. Percentages are general for multiple camps and will differ from camp-to-camp.