If you’re thinking of adding glamping to your offerings, there’s good news: there’s never been a better time to consider this type of outdoor hospitality. According to Kampgrounds of America’s 2023 North American Camping & Outdoor Hospitality Report, 10 million households across North America went glamping in 2022 compared to 3 million in 2020. What’s more, they’re looking for experiences that merge resort-style amenities with the desire to be outdoors as well as the chance to stay in a structure that’s truly unique.
Whether you’re looking at PlainsCraft Covered Wagons or other structures for your campground, park, or land, you are probably already thinking about the return on investment (ROI) you’ll get from including this type of accommodation as an option. The good news is your guests are willing to pay higher prices to stay in a glamping structure, which means that ROI can be outstanding. As you’re considering pricing a glamping structure for your situation, we’ve got 5 tips to help you think through what you can charge guests for an overnight stay.
In real estate, comps, which is short for “comparables,” can help you find recently sold homes that are similar to yours when you’re selling so real estate agents know how to price your home. It isn’t much different in the world of glamping. You can do a simple search of other glamping options in your area by using the search term “glamping near me” or “glamping near…” and including your location or a landmark that’s close by. Then you can do your research to find what other glamping structures are renting for near you.
While comps are helpful in helping you know what to charge for your rental, keep in mind that the price of other glamping structures around you is a starting point, and not something you should use as a final price. Make sure you’re also looking at specific structures. For example, data from Sage Outdoors Advisory says nationally, covered wagons ranked third out of 12 in highest average daily rate at $389, with only domes and luxury safari tents priced higher. Keep that in mind if there are no other covered wagons near you, because people may be willing to pay more of a premium for this type of overnight accommodation. Comps can give you insights to help price your accommodations accordingly.
While Sage Outdoor Advisory reports an average daily rate of $389 for wagons, it’s important to note that those numbers are an average from across North America. You can use this as a guide for what some campgrounds charge. But you will need to adjust that rate for your specific location.
For example, if you are in a rural location, those rates may not make sense unless you have proximity to a park or tourism attraction. If you’re on a coast or close to a city where guests are used to paying a premium for glamping experiences, you can likely adjust your rates accordingly. Those comps can help you get a better sense for what people are willing to pay as well. And remember, you can always adjust if things seem off.
What do you have available for your guests that will make their experience even more enjoyable? Keep those amenities top of mind as you’re pricing a glamping structure. With full bathrooms like PlainsCraft Covered Wagons offer, you can generate an additional $30-$60 per night in annual daily revenue. Similarly, if you have options for relaxing or modern amenities for guests to look forward to, like access to kitchens or local food trucks, yoga classes, games, or even kayaking and fishing on a pond, you may be able to increase prices slightly.
And remember that guest don’t consider Wi-Fi a luxury amenity anymore; it’s one of the most-desired amenities for campers. Access to technology means people are willing to stay in your glamping structure even longer, because around half of campers work while camping. You could help guests increase their stay while giving them the creature comforts they’re looking for in an unforgettable getaway. Weigh all of these as you develop your pricing structure.
According to the 2023 Camping Report from The Dyrt, there has been such an increase in demand that nearly half of respondents raised their camping rates in 2022, and another 46.4 percent were planning to raise their rates this year. Remember that fact as you start thinking about how to begin pricing a glamping structure.
Next, you may want to review the overall costs involved in rentals. You can use PlainsCraft’s ROI calculator to develop an estimate. Consider things like the base price of the glamping structure, shipping, unloading, and setup costs — which are minimal for our covered wagons — as well as the fixed and direct annual costs that may be involved. From there, you can determine what you expect annual revenue to be and the expected payback. Remember, once you pay off the structure itself, that annual revenue is income you get to claim year after year.
As you add glamping to your options, keep in mind that you’re joining a growing group of park and land owners who have insights into how to make your glamping endeavor a success. You may want to join an organization that can help bring in guests that make sense for your needs. For example, if you have a farm or ranch with glamping available, joining Farm Stay USA may be a great resource that helps drive guests to your door.
Similarly, you may want to join the American Glamping Association, which provides resources to businesses like yours. You may even want to attend Glamping Show Americas, which is an annual event held in October that is dedicated to the industry. While there, you can speak with business professionals, network and connect with others like you, and seek advice about making the most of your business. Not only can organizations such as these provide guidance on pricing a glamping structure, but they can also connect you with like-minded individuals who can help you grow your business.
If you haven’t already added glamping to your park or campground, let’s talk. PlainsCraft Covered Wagons offers one of the most sought-after types of glamping structures on the market. Let us help you bring guests the experiences they want. Get in touch and we’ll help you see just how profitable this business can be.