Glamping is an exciting new trend in the vacation rental industry that allows would-be property owners and established businesses to get involved in the hospitality industry with smaller initial investments than traditional vacation rentals.
This niche industry has seen steady growth over the past 15 years. But is this a flash in the pan? Or is it a new frontier of sorts that investors should jump at?
We’ll discuss this and more in today’s article.
But First, What Exactly Is Glamping?
Glamping is a new trend in camping that combines the luxury of staying at an upscale hotel with all the rustic charm you would expect from your average campground.
The days of couples fighting over whether they should go camping or stay at a hotel are long gone since glamping blends the best of both worlds. The name itself GLAMPs up ordinary tents to make them feel more luxurious while still offering guests the best of nature and the great outdoors that traditional camping provides.
What Kind Of Accommodations Can One Expect While Glamping?
Glampsites offer guests everything from tepees and safari tents to yurts and tiny homes for their stay. They also include access to premium amenities, including luxury bathrooms, fire pits, and glamorous pools.
Glamping companies are always looking for new ways to make their experiences more memorable for guests. While tents were once considered a cheap form of accommodation, glamping companies have turned them into luxury suites under the stars, complete with everything from king-size beds and chandeliers to kitchenettes with plumbing.
What’s The Typical Guest Profile At Glamping Sites?
This new trend in tourism has quickly become popular among both Millennials and Gen Z demographics.
While other demographics certainly frequent glamping sites, the younger adult “glampers” are dedicated to leaving an eco-friendly footprint during their stay. They often seek out companies that support sustainable travel while providing 5-star amenities for their visitors.
Is Glamping Cheaper Than Hotels?
While one might think that glamping would be cheaper than a night at a hotel, the opposite is often true for this unique experience beneath the stars.
In fact, Red Oak Development Group’s new luxury glamping resort near the South Rim of the Grand Canyon anticipates an average nightly rate between $209 to $299, depending on the season. With average hotel stays being around $283 per night in the area, glamping tends to bring in similar rates of returns as nearby hotels.
Are Glamping Sites Profitable For Investors?
The COVID-19 pandemic helped boost glamping’s popularity over the past few years by providing guests with an opportunity to vacation while still social distancing. But that doesn’t mean this trend was a flash in the pan.
With the rise in popularity of sustainable travel among young adults and their desire for unique accommodation experiences, the glamping niche is only expected to grow in the coming years.
According to recent statistics released by Grandview Research, the glamping industry is expected to grow by more than 10.9% between 2022 and 2030 and was valued at $2.35 billion last year in 2021.
The Continuous Upside Of The Glamping Business Is Great
With any new glamping business comes the opportunity to create additional services that complement current operations and generates even more revenue for investors and owners alike.
The continuous upside in revenue for glamping sites includes:
- Hosting events for large groups, including family reunions, weddings, and festivals.
- Providing add-on guest experiences such as guided tours, horseback riding, mountain climbing, hiking, etc.
- Add-on food services, including onsite restaurants and food trucks, or simple convenience store items.
- Offering health and wellness packages, including yoga, meditation, spa treatments, and more.
Future Outlook For “The New Frontier” In Hospitality
Thanks to travelers becoming more eco-conscious and placing high values on sustainability while still prioritizing luxury, wellness, and adventure—the glamping business is here to stay.
Glamping creates a perfect niche for real estate investors who want to invest in an exciting opportunity within this growing industry. And if you’re interested in investing in this growing niche, Red Oak Development Group has an exciting opportunity for you.
Luxury Glamping Resort Near Grand Canyon Actively Seeking Investors
Our Red Oak Development Group team is currently working on a 12-unit (applying to grow to 30 units) luxury glamping resort just 30 minutes from the South Rim of the Grand Canyon and 15 minutes north of Williams, Arizona.
This resort will operate from April through October with an expected occupancy rate between 70-80% depending on the season and average nightly rates between $209-$299.
If you’re interested in learning more about this exciting project, or if you’d like to become a passive partner investing in this project, schedule a call with us today.
