The past eighteen months has seen the slowing down of caravan/lodge sales on parks throughout the UK. With no sign of improvement on the horizon, there’s a question-mark on the future investment from large park-operating groups and the funding market.
The return of high interest rates, a period of high inflation and the cost-of-living crisis has certainly taken its toll. Despite all these negatives, pitch fee charges have continued to rise during this period. Absolutely crazy!
Most parks now are experiencing fewer sales per season with empty pitches to fill. As a result, some parks now are again offering caravan owners to move onto their parks free-of charge, and in some cases offering free pitch fees for 2025. A sign of desperation, I would say. They may be better advised to reduce their pitch fees slightly.
Traditionally, operating a holiday caravan park was a family business: husband and wife and children, if old enough would carry out the day-to-day duties with a number of full-time staff employed, depending on the size and pitch numbers of the park. Pitch fee income was the mainstay for the park’s economy and well-being; caravan sales was the icing on the cake for the operator. So having full pitches was the key essential.
“…some parks now are again offering caravan owners to move onto their parks free-of-charge..”
Annual pitch fees in the early days were always set to ensure they were affordable and competitive.
Nowadays, large corporates tend to take the accountant’s approach to operating their parks, looking only at the bottom line of profit in each year, rather than the long-term effect of an unstable economy.
So, for the future of our parks let’s hope common sense and good business acumen prevails.
“…and in some cases offering free pitch fees for 2025..”
