The Market for Caravan Holiday Homes in Wales. The Brief Commissioned by WTB and BH&HPA Aim=...

The Market for Caravan Holiday Homes in Wales

The Brief

• Commissioned by WTB and BH&HPA

• Aim= Increase the understanding of holidays taken in caravan holiday homes in Wales.

• Focus on caravan holiday homes (‘static caravans’) rather than touring caravans. (Abbreviated to CHH)

The Brief

Collect information about:

• Visitor profile

• Visitor motivations, expectations and satisfaction levels

• Use of local facilities

• Booking behaviour

• Past and future holiday taking patterns

• Expenditure patterns

• Segmentation of the market

• Occupancy of caravan holiday homes

Method

Industry view

• Structured interviews with 26 park managers/owners across Wales

Caravan holiday home (CHH) users’ view

• 807 interviews with caravan users spread across 17 sites in July, August and September

Method (Sample)

• British Holiday and Home Parks Association’s database of caravan holiday home parks in Wales

• 322 parks (158 graded)

• 35,895 CHH pitches (21,652 graded)

CHH USER SURVEY

CHH USER SURVEY

Visitor Profile

Sample

• 58% owners

• 15% renting from private owner

• 7% renting through an agency or holiday company

• 6% renting direct from park owner

• 5% renting from friends/family

• 4% borrowing from friends/family (no fee)

• 4% DK/NA/None

Age

16%

35%

50%

30%

49%

20%

30%

47%

23%

0%

10%

20%

30%

40%

50%

60%

16-34 35-54 55+

Age

Owners Renters Wales Holiday trips (UKTS)

Socio-Economic Group

61%

39%

29%

71%

56%

44%

0%

10%

20%

30%

40%

50%

60%

70%

80%

ABC1 C2DE

Owners Renters Wales Holiday trips (UKTS)

Family life-stage

13%

47%

8%

40%

20%

72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Pre-family Family Post-family

Owners Renters

CHH USER SURVEY

Holiday taking patterns

Average length of CHH holiday

7.8

8.7

3.6

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

Renters

Owners

Wales holidays (UKTS)

No of nights

Type of holiday

19%

26%

2%

3%

24%

36%

18%

1%

50%

22%

0% 10% 20% 30% 40% 50% 60%

One of several mainholidays

Main holiday of 2003

Secondary / additionalholiday

Only holiday of 2003

Don’t know / not sure

Owners Renters

Average No. of holidays taken in 2002

Type of holiday Owners Renters

Short hols (1-6) 2.9 0.5

Long hols (7+) 2.5 1.0

•45% of owners took 5 or more short breaks (compared with 27% of renters).

•Renters were much more likely to have not been on a short holiday or break than owners (73% as compared with 27%).

Use of Owned CHH

%

Yes 53%

No 41%

DK / NA 6%

Frequency of use

Allow use by friends / family?

Owners Friends / family

Almost every week 49% 5%

Once or twice a month 31% 6%

Every couple of months 9% 21%

2-3 times a year 4% 48%

DK/ NA 7% 3%

Holidays taken in 2002 (Destinations)(Percentage of trips)

OWNERS RENTERS

Long Short Long Short

Wales 74% 91% 55% 44%

Other UK 5% 7% 15% 43%

Abroad 21% 1% 30% 11%

Don’t know 1% 0% 0% 1%

Figures relate to total trips

Alternatives (destinations)(Percentage of trips)

Destination %

Elsewhere in Wales 34%

Other UK 21%

Nowhere 14%

Abroad 12%

DK/Not sure 20%

We asked what other locations CHH renters would consider for a holiday or break.

Alternatives (accommodation)(Percentage of trips)

We asked what other types of accommodation CHH renters would consider for a holiday or break.

Accommodation type %

Other caravan park 46%

Other self catering 15%

Serviced accommodation 8%

Nowhere 4%

DK / Not sure 29%

CHH USER SURVEY

Motivations and satisfaction levels

Renters - Factors influencing holiday choice

90%

87%

83%

80%

Wanted a value for moneyholiday

Wanted to stay on acaravan park

Wanted to holiday in thispart of Wales

Wanted a holiday in Wales

% quite/very important

Renters - Appeal of CHH

42%

21%

14%

8%

8%

6%

6%

6%

Flexibility / Freedom

Good for kids

Relaxing

Cheap break / holiday

Home from home

Like / enjoy CHH

Good facilities available

DK/NA

Owners - Appeal of CHH

28%

23%

22%

19%

9%

6%

Relaxing

Freedom

Escape / get away from it all

Able to use for short breaks

Peace and quiet

Good for children

Reasons for choice of park

3%

13%

11%

10%

9%

9%

7%

21%

5%

14%

12%

6%

5%

1%

Peace & Quiet

Good for kids / kids love

Good location/like the area

Recommended by friend /family

Wide range of facilities

By the sea / sea view

Lots of entertainment

Renters Owners

Satisfaction with CHH holiday

93%

93%

86%

65%

94%

85%

88%

78%

Location and thesurrounding area

Caravan holiday homeitself

The look of the park andthe way laid out

Facilities on the park

% very /quite satisfied

Owners Renters

CHH USER SURVEY

Booking behaviour

Time of booking (renters only)

6%

5%

12%

27%

21%

24%

5%

0% 5% 10% 15% 20% 25% 30%

Week or less before

More than a week, up to 2weeks

More than 2 weeks, up to1 month

Over 1 month, up to 3months

Over 3 months, up to 6months

More than 6 months

DK/NA% renters

Information Sources (renters only)

• Been before 39%

• Word of mouth 26%

• Advert in newspaper/ magazine 13%

• Holiday brochure 11%

• Internet 5%

Influence of grading schemes (renters)

Whether grade influenced parkchoice

% total (renters)

Yes 5%

No 40%

Not sure/ don’t know 56%

CHH USER SURVEY

Expenditure Patterns

Expenditure on accommodation and subsistence

Spend area Amount spent (whole holiday)

Owners Renters

Accommodation - £351

Subsistence* £184 £466

Spend per group per trip £184 £817

Average group size 4.2 3.0

Spend per person per trip £61 £194

Spend per person per night £7 £25

Nights/trip 8.6 7.8

Comparison of spend figures

CHH Survey Wales holidays1 Gwynedd2

Owners Renters Ownedcaravans

Rentedcaravans

Allhols

Caravanusers

Spend perperson per trip

£61 £194 £77 £183 £136 £150

Spend perperson per night

£7 £25 £20 £34 £37 £20

Nights/ trip 8.6 7.8 3.9 5.3 3.6 7.5

1. UKTS 2002 – figures for rented and owned caravans are based on very small samples and should be taken as a guide only 2. Gwynedd Tourism Survey, 2000, System Three

Expenditure (% spent on various elements)

14%

34%

6%

33%

11%

2%

5%

42%

16%

23%

13%

2%

Transport

Meals and Drinks

Entertainment /Attractions

Groceries

Other shopping/gifts

Anything elseOwners Renters

CHH PARK OPERATORS’ SURVEY

•Structured interviews with 26 park managers/owners across Wales

The Market

Split into two main markets:

• Owned CHH

• CHH Hire Fleet

Owned CHH

Pitch Fees

• £750- £3000 per yr (+ insurance, rates and utilities)

Sub-Letting Policy

• Majority don’t allow commercial sub-letting

• Friends and family only

Occupancy

• Difficult to get figures on occupancy due to confidentiality issues or lack of info.

Promotion - Owned CHH

• Word of mouth very important

• A lot of owners introduce friends

• Hirers who then go on to buy

• Very little indication that any active promotion is undertaken

The Market - Hire Fleet

Letting Fees & Policies

• Range from £125 - £530 per wk (depending on season)

• Some offer short break rates (even in high season)

• Vast majority handle the letting of CHH themselves rather than use an agency

Occupancy

• 60-100% during high season

• Occupancy is seen as relatively stable over the last few years.

Promotion - Hire Fleet

• Word of mouth important

• Advertising in local /WTB guides

• Increasing importance of internet

– Up to 80% of business

– WTB & BH&HPA websites were cited by as important for a number of operators

Park Operator Attitudes

Market Trends

• Shift back towards taking domestic holidays

• People are taking more holidays so not worried by people taking overseas holidays

• Central heating in CHHs has extended the potential season

• People are willing to invest more in their leisure choices

Park Operator Attitudes

Outlook for Industry

• Generally very positive

• Can’t see any major problems affecting business

• Limited opportunities for physical expansion of parks means business growth will come from up-grading of CHH and parks

• Park owners / managers still enjoy the job but feel it is getting harder

Park Operator Attitudes

Grading schemes

• For hired CHH, operators find it hard to judge importance of grading schemes to customers, but don’t get asked directly about it

• For Owned CHH, operators feel it is not important at all

• Over-emphasis of grading schemes on facilities rather than customer service

• David Bellamy Award scheme is generally well thought of

Park Operator Attitudes

Frustrations

• Increase in health and safety legislation

• Strictness of employment law (leads to reticence to employ in favour of sub-contracting)

• Negative view of local authorities towards CHH parks

• Problems with recruiting some staff (e.g. cleaners)

• Duplication within inspections (i.e. Fire boxes being checked by more than one organisation)

SUMMARY

Profile - Owners

• Older, half aged 55+

• Slightly greater tendency to be ABC1 than Wales holidaymakers as a whole

• Couples and families

• Prolific holiday takers

• Tend to buy on rural parks with fewer facilities

• Quality of park environment is very important

• Looking for sedate pace and peace and quiet

• Enjoy time on the park but also enjoy the surrounding countryside

• Value freedom of CHH

• Main provider of rented CHH

• Average length of stay is twice average for Wales

Profile - Renters

• Younger profile

• Lower socio-economic groups

• Dominated by families

• Caravan holiday taken as main holiday

• Kids’ needs drive park choice

• Past experience and recommendation are main reason for holiday choice

• On-park facilities important although sea/beach is a major draw

• High satisfaction with Welsh parks leads to high repeat business

• As active as Wales holiday-takers as a whole

• Overseas destinations are main competitor for long holidays

Economic impacts

• Total spend in Wales £209m (Owners £73m /Renters £136m)

• 55% spent on subsistence

• Half of this spent off park (Owners 61%/ Renters 52%)

• A third of people bring food with them

• 43% of owners at some point have used CHH holidays to make major purchases

• Small park (e.g. 100 owned CHH) - £535k

• Large park (e.g. 300 owned and 200 rented CHH) - £7.4m

Social impacts

• Little appeal to non-white ethnic groups

• Appeal to families and older groups

• Owners 2/3 ABC1, average hh income £25K

• Renters 2/3 C2DE, average hh income £20K

• Socially inclusive holidays

• Main/only holiday for half respondents. Only 30% had been abroad

Tourism impacts

• An important strand of tourism for Wales

• Delivers high degree of satisfaction

• Perceived as good value for money

• A captive market for Wales

• Sustainable consolidation rather than expansion?