08 May 2013
Words Tim Admin

Park for a Holiday: and Let the Good Times Roll

There’s something special about a caravan park holiday, something hard to put your finger on. It’s a magical appeal no other accommodation type seems to hold. Selling this ‘X factor’ is the key to a promising future for an industry with its roots in the past. It’s almost two years now since Informer first covered Australia’s enduring love affair with caravan parks. (‘Accommodation on the Move’, July 2011). “Once regarded as a bit old-fashioned, caravanning is enjoying a resurgence,” we reported. In fact, we went so far as to assert that, more than just shaking off its former conservative image, the caravan park holiday was becoming the epitome of cool. So what is the ‘X factor’ inspiring so many people to return to a style of accommodation that was really in its prime in the 1960s and 70s? It’s not just about a great location, although no one would deny most parks have that in spades. Nor is it purely about the laid-back accommodation style, or great facilities. Even the sum of all these elements still doesn’t quite seem to explain the allure. Actually, we think the secret ingredient is fellow holidaymakers. What makes a caravan park holiday truly memorable is the social experience, camaraderie with other guests, immersing yourself for a little while in a community whose single-minded purpose is to relax and have fun. “When you arrive at a hotel or motel, you don’t knock on the doors of other guests to say g’day, do you?” says Resort Brokers Australia managing director Ian Crooks. “You either go out to have fun, or you are contained within your four walls. “But when you drive into a caravan park and pull out your deck chair, your neighbours wave hello, offer you a drink, want a chat. It’s just a great atmosphere, a sociable experience no other accommodation environment can match. Lifelong friendships are made in caravan parks.” Business analysts at IBISWorld estimate Australia’s caravan parks and camping grounds industry generated revenue of $1.31 billion in 2011-12, up 1.1% for the year. It contributed to an estimated average annual growth rate of 1.3% for the five years to 2011-12. Australian Bureau of Statistics (ABS) data (Caravan or Camping in Australia Snapshot 2012) tells us there were 1,638 caravan parks (with 40 or more powered sites) nationwide as at mid 2010. All up, the figure is somewhere over 2,300. ABS figures also show around 90% of all caravan and camping visitor nights were spent outside capital cities, highlighting just how important this sector is to regional Australia. Significantly, our caravan and campervan fleet is continuing to grow strongly. RVM Australia, the peak body for our RV manufacturing industry, says total production of caravans and RVs has been running at over 20,000 vehicles per annum for three years. “This is the third massive year in a row – 29% above the level reached in 2009 – and early signs for 2013 suggest we can expect another boom year,” said RVM Australia CEO David Duncan. “Clearly, people want relaxing, economical and sociable holidays that RVs make possible, with these boom years achieving more than four times the output we had in the mid-1990s.” There’s that word again – ‘sociable’. IBISWorld contends caravan parks and campgrounds have risen to the modern-day tourism challenge, reinventing themselves to become a more important component of total tourist accommodation in Australia. “This includes improving facilities for families and other specific tourist groups with a particular focus on cabin and on-site van segments,” their May 2012 Market Research Report stated. “New quality facilities are usually available at lower tariffs than competing hotels and motels, but still offer attractive profit margins. “The caravan parks and camping grounds industry survived the economic slowdown in better shape than other tourist accommodation providers by offering a combination of low-cost and high-quality accommodation.” Park owner and Big4 Holiday Parks director, Allan Walls, says the dramatic evolution of parks into comprehensive holiday and resort destinations has been critical. “The range of activities provided within the property allows families to holiday in complete relaxation and security for as long as they want,” he said. “A family of three generations will meet up at a holiday park at Christmas. Everything they need is right there for children, young adults and older family members. They can simply relax and enjoy each other’s company knowing everyone is catered for, the children have lots to do in a safe environment, and they don’t have to keep packing up and moving on.” He raises an interesting point – that of inter-generational appeal. Younger age groups are now discovering a style of holiday already loved by their parents and grandparents. Any notion that a caravan park holiday was for fuddy duddies is well and truly debunked. According to the ABS Snapshot, exactly half of the 8.5 million domestic caravan and camping visitors in Australia in 2011 were aged 30 – 54 years, while around one quarter were active seniors aged 55 to 70 years. This latter sector grew rapidly in 2011, with visitors increasing by 12% to 2.6 million. Compared to 2000 estimates, trips by active caravan and camping seniors were up by 90%, while nights were up 23% and expenditure was 77% higher. Here comes the huge baby boomer brigade, an unstoppable and hugely valuable population segment which, like families, will be vital to the caravan park industry. Already, caravan parks have instant appeal to this cohort. Studies show baby boomers want adventure, experiences and the opportunity ‘to get to know Australia’. They are hitting the road, staying in caravan parks. Research also shows the key to attracting boomers is to appeal to their ‘forever young’ mindset. What better way to remain young than to revisit the holiday experiences you enjoyed so much in your youth? Some forecasts suggest the number of RV travellers will increase by more than 60% over the next 10 to 15 years. Of course, that’s not to say there are not challenges to be met. The high Australian dollar and availability of cheap international airfares are difficulties faced by our entire accommodation industry. But there is also an increasingly evident shift toward holidaying at home, and a yearning expressed by many for simple, stress-free pleasures. These are trends that should be encouraged, and needs that can and must be met by the industry. The caravan park sector is expected to change shape considerably. The number of establishments will continue to decrease as some sites are converted to higher and better return uses. Larger operators such as Discovery Holiday Parks (formerly Beston) and Aspen Parks have bought up many operations, while other park owners are supported by major member organisations such as Big4 Holiday Parks of Australia, Top Tourist Parks of Australia and Family Parks Australia. These companies and organisations clearly see growth potential in the industry. But success for all operators will require strong business plans and management practices. This means implementing highly effective marketing strategies, promotional partnerships with other tourism operators and attractions, customer relationship management, effective performance monitoring systems, and up-to-the-minute online booking facilities. A great deal of helpful information and resources are available through peak industry bodies and at major industry conferences and events. Just last month, an industry partnership was formed between the Accommodation Association of Australia (AAA) and the Caravan, RV Accommodation Industry of Australia (CRVA), giving CRVA members an enhanced industry voice and access to a range of services, including workplace relations support. For every business, the key to success is knowing your USP (unique selling proposition) – the attribute that most sets you apart from your competitors – and selling it effectively. In the caravan park industry, that USP, is its ability to provide guests with a memorable shared social experience. Allan Walls summed it up: “We, as an industry, face challenges from many other accommodation providers in Australia. But they are never able to provide the friendships that our industry provides.”