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Glamping Tents Just Make Financial Sense

Smart resort owners are investing in glamping tents as they become aware of the quick return on investment that they offer. For example, let’s look at a case study from one of our client’s Kampgrounds Enterprises Inc and their San Diego Metro Resort. 

San Diego Metro KOA
4.2m Eco Tent with add-on encosure

In August 2017 Josh Bell got in touch with us to add some glamping tents to their existing accommodation. After our discussion Josh decided to go with four of our 4.2M glamping tents with one add-on room each. Once the delivery was made in November the tents were installed at the rate of one tent a week, taking only two months for the entire site to be completely ready, including site preparation, landscaping and the setting-up of utilities.

Return on Invest = 1.6 years

The Deluxe Eco Tents themselves are designed to sleep six people with 1 Queen and 2 sets of bunk beds, while they don’t have an included bathroom, they do contain custom furniture and a small sink. In the first year from June 1, 2018 through to May 31, 2019 at San Diego KOA there were 74 stays per tent with 145 nights booked, which gives a dollar figure of $22,500 US, at an average nightly rate of $155 a night. The second year results (to date) from June 1st, 2018 through to Feb 29, 2020 (9 months) were even more impressive, given the shorter time frame, with 57 stays equalling 125 nights per tent, giving a US dollar figure of $20,300 and an average nightly rate of $162 a night. The estimated investment per Deluxe Eco Tent including site prep, landscaping and fashionable furnishings was $30,000. Even if you consider the running costs of $30 a night that still gives a net rate of $127 a night. From this net rate we can work out the return of investment. If we calculate using an estimated annual occupancy rate of 40% or 146 nights, times $127, this gives us a figure of $18,542 per year. This means that for our client, the payback period for our Deluxe Eco Tents was only 1.6 years. No wonder they left us the following testimonial.

Testimonial

“We are thrilled with the addition of our 4 Deluxe Eco Tents at the San Diego KOA. They have not only attracted new guests to stay at our Holiday Park but, have inspired existing guests to try them out with their families and friends. We love the look, the ROI and the expected longevity of the product.  The payback period exceeded our expectations and as a result we already have 3 more Eco Tents at another of our properties, plans to add 10 more at an additional property and are in design and development for a higher-end 12 Eco Tent dedicated Glamping project at a 4th property. Thanks ESA!”

If you’d like to find out how our Eco Glamping Tents can transform your resort and your bottom line then get in touch with us today – we’d love to talk glamping with you.

Calculate your ROI today!