calm before the storm – 2019 strong year for uk holiday...

Calm Before the Storm – 2019 Strong Year for UK Holiday ParksTHE UK HOLIDAY PARK INDEX 2017-2019

rmscloud.co.uk

The UK Holiday Park Index 2017-2019 by RMS |

UK holiday parks had a strong 2019 and an excellent start to 2020 before bookings came to a grinding halt in March. This was initially due to Coronavirus consumer anxiety and was later compounded by park closures in response to tough new government restrictions on travel and gatherings.

Leading hospitality technology company RMS Cloud said that online revenue per booking at UK holiday parks increased by 17% between 2017 and 2019 based on analysis of 400,000 bookings through its property management system. This momentum continued through January, traditionally a peak booking month. Volumes were significantly up on last year, though revenue per booking was marginally lower due to shorter length of stay. February tracked ahead of 2020 in both volume and revenue per booking.

Peter Ferris, Director of Sales and Marketing at RMS Cloud, said the first edition of the RMS Cloud UK Holiday Park Performance Index revealed the progress made by the industry over the past three years.

“It’s easy to forget but important to remember how far the industry has come in a very short period of time,” said Ferris.

“The quality of product and service has been steadily improving and that’s reflected in the higher online booking revenues we saw in 2019. The big takeout from our research is that British travellers are taking shorter breaks but are willing to pay more for better quality accommodation, and that’s a good sign for the future.”

Revenue per online booking rose

17% from £292 in 2017 to £343

in 2019.

Key Findings

Length of stay slipped 13% from

3.7 days to 3.2 days over the

same period.

Booking lead times shrunk 7%

from 2017 to 2019.

Online travel agents increased

market share from 24% to 35%.

Hoseasons, the leading OTA for

the UK holiday park sector.

Introduction

Table of Contents

Page 4Online Booking Revenue Increases

Page 9July Peak Booking Month

Page 5Staycations on The Rise

Page 10Average Revenue per Online Booking

Page 6Better Product, Higher Prices

Page 11Booking Lead Times Shrink

Page 7Online Travel Agents Increase Market Share

Page 12Busy Lives, Shorter Stays

Page 8OTA Race in One

Page 13Conclusion: Big Year Ahead



Online Booking Revenue IncreasesThe RMS Cloud analysis showed average revenue per online booking for UK holiday parks rose from £292 in 2017 to £343 in 2019. That’s an impressive revenue increase of 17% per online booking, despite the average length of stay slipping 13% from 3.7 days to 3.2 days over the same period.

2017 2018 2019

£292

£328£343

Average Revenue Per Online Booking


Staycations on The Rise

These findings were further confirmation that demand for UK ‘staycations’ rose in 2019 - a year of political and social turmoil – after a soft 2018 when domestic travel numbers dipped by 2%, according to the Great Britain Tourism Survey.

Leading holiday park online travel agent, Hoseasons, told Travel Weekly UK “unprecedented demand” drove record bookings in 2019 when more than two million British holidaymakers booked through its online platforms, up by 10% from the previous year.

Meanwhile, Sykes Holiday Cottages, which has more than 15,000 properties throughout the UK, also reported a record 2019 with bookings up 28% year on year. Both companies reported continued booking momentum through January 2020, a trend RMS Cloud also saw with record booking volumes.

Better Product,Higher Prices


Better, more expensive products also contributed to the revenue increase. Savvy operators are developing premium lodge and glamping options and this innovation is being embraced by a growing consumer appetite for better quality accommodation and holidays at home.

Catalysts for this development include the influx of new corporate investors such as Blackstone, Brookfield, Cove Communities and Onex into the sector, continued consolidation by multipark groups and a desire to extend the brief peak-booking period in the cooler months with ‘weather proof’ products.

76% 24%

33%

35%

67%

65%

OTADirect


Online Travel Agents Increase Market Share

It had to happen… online travel agents are finally making an impact on the UK holiday park sector, increasing their share of web bookings from 24% to 35% over the past three years, according to RMS Cloud statistics. It demonstrates that holiday park operators are diversifying their distribution mix rather than relying on the same customers booking direct year in, year out.

2017

2018

2019

Direct v OTA Trend 2017-2019


Major Channels Online Share Per Month 2019

Hoseasons is by far and away the leading OTA for the UK holiday park sector. Its online market share was strong throughout 2019, sharply increasing through the back half of the year, regularly exceeding 20%, most likely due to increased marketing. Pitchup.com was its closest competitor during the peak summer season, while Booking.com was steady, though a shadow of the OTA that dominates hotel bookings.

28%

16.5%

60.3%

72.0%

4.5%6.4%

4.1%4.2%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

OTA Race in One

Direct Hoseasons Booking.com Pitchup

July Peak Booking Month, January a Surprising SecondUK holiday parks made their money in the first eight months of the year with peak bookings in July. Volumes fell away dramatically during September, October, November and December (though revenue per booking was surprisingly good). By January, everyone was so sick of the cold, miserable weather that they started dreaming of warm, summer holidays and bookings took off again.


UK Holiday Park Booking Volume Per Month 2019


The colder the weather is, the more people want to get away. November, December and January have consistently been the best months for UK holiday park owners to pick up lucrative long-stay bookings, and 2019 was no exception. At an otherwise quiet time of year, it’s clearly an excellent period for operators to be promoting and packaging their product to ensure a strong start to the year.

Average Revenue per Online Booking 2019

Jan Feb Mar Apr May Jun Jul Aug

£484

£405

£310

£286

£301£314£314£313

£349£346

£435

£327

Sep Oct Nov Dec


As the graph above shows, booking lead times for holiday parks contracted over the past three years, but not by a significant amount or with any consistency. Bookings made in January and December had the longest lead times as people locked in their annual spring and summer trips well in advance, while guests tended to book much closer to the date of stay during the warmer months.

Booking Lead Times Shrink



Average booking lead time 2017-2019

2017 2018 2019

0

Day

s In

Adv

ance

127

Staycations may be on the rise, but guests are staying at UK holiday parks for less time than they did in the past. Overall the length of stay has fallen by 13% in the past three years from 3.7 days to 3.2 days. This is a trend being seen across the global travel industry with people from mature tourism markets taking more trips but for less time on each occasion.

Busy Lives, Shorter Stays

Average Length of Stay


2017(3.7 Days)

2018(3.6 Days)

2019(3.2 Days)

3.7Days2.9

THE UK HOLIDAY PARK INDEX 2017-2019

rmscloud.co.uk

Conclusion: Big Year Ahead

The UK holiday park industry is in a good place as pandemic restrictions ease and summer holidays loom. Booking volumes are back on the rise, consumer interest levels are high, staycations are now a long-term trend and the product quality has never been better.

Peter Ferris, Global Director of Sales and Marketing, says that despite the impact COVID-19 has had on the hospitality sector, the future looks bright for UK holiday parks. The essential thing now, more than ever, is for operators to maintain a commitment to investment and innovation. “We have seen what a difference new products can make and there’s no question a new generation is discovering the simple pleasure of spending time in the great outdoors at a UK holiday park,” Ferris said.

“The question now is – can the recent momentum be maintained in a post-COVID future? We believe the answer is a resounding yes.”

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calm before the storm – 2019 strong year for uk holiday...

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