Glamping can be a good business in 2024 if you:
Starting a glamping business can come with considerable costs. Glampitect North America estimates the cost of starting a 10-yurt glamping business in the USA at approximately $755,000. A glamping business owner with 3 geo domes in the Great Smoky Mountains of Tennessee notes that their initial investment on the project is $100K for the 3 units, land, setting up utilities like water and electricity, and the permits to operate. Without the proper funding, a glamping business is at risk of not having the resources to set up properly and attract guests that will pay a sufficient rate to generate profits for the business.
A glamping business can require a major time commitment to accommodate guests and handle property issues. As such, it’s best to live near the property to avoid the additional hassle of commuting long distances to manage the property. A successful glamping business owner that experienced an over 300% return on their investment in the first year notes that they wouldn’t recommend the business model unless you live close and enjoy the work required to operate a glamping property.
Glamping often comes with substantial development requirements, like setting up running water and electricity. Although some people consider renting land for a glamping business, this isn’t the best idea because any land improvements belong to the landowner. Someone that operates a glamping business on rented land is at risk of being unprofitable if the landlord decides to take back their property before the glamping business recoups its investment.
Properly setting up a glamping business requires applying for the proper permits and licensing, which depends on where you plan to operate. Glamping businesses that neglect this step can face major repercussions, like losing the ability to operate. A glamping business owner on Reddit notes that while they have been going through the process of setting up their business the right way in northern Arizona, they have heard of many other glamping businesses that have been shut down by the local municipality because they ignored the permitting process.
Rob Abasolo of Robuilt notes that it can take 3 - 5 years to start a glamping business because of all the planning and permitting required. Rob teaches his audience about different permit considerations, such as the different zoning ordinances and health department regulations, like installing proper sanitation facilities on the property. Rob explains that some glamping projects may even require conditional use permits, which can require community approval.
For a glamping property to be a good business, the property typically needs to be in a location with beautiful natural scenery to attract guests to this type of experience. The property should also be able to accommodate guests throughout the year to maximize profitability. For example, one glamping business owner on Reddit has a property in Vermont that attracts guests in the winter for skiing and the summer for weddings.
Another business model that requires much less investment and can generate income much faster than glamping is local lead generation. Local lead generation entails setting up websites that attract customers for local service businesses and selling these leads to real service businesses for $500 to $3,000/month. Many find local lead generation to be a preferable business because after you rank a website and partner with a local business to take the leads, the website requires little upkeep so it can generate passive income.
In the following article, we discuss further whether glamping is a good business by looking at the pros and cons of the business model.
6 Pros of a Glamping Business
1. A glamping business can be highly profitable.
Offering a glamping site as a vacation rental can be a great way to earn big bucks. For example, you can charge anywhere from $80 to $130 per night for a simple glamping tent. Meanwhile, high end accommodations can be worth as much as $350 to $1,500 per night. You can just imagine the potential income you can make if you can attract customers to book your place.
2. The demand for glamping sites continues to grow each year.
On a global scale, the market for glamping is growing non-stop. In fact, the compound annual growth rate (CAGR) for the industry is projected at 13.1% from 2023 to 2033. A PR News Wire report likewise tells us that experts expect the market size to hit $7.11 billion by 2031. Starting your own glamping accommodation business means you become part of a booming industry in the tourism sector.
3. Creating your glamping site from scratch can be quite rewarding.
Visualizing and then actually building your own glamping spot can be an exciting phase for you as a business owner. Some excellent options include glamping dome tent, bell tent, canvas tent, cottage, safari tent, shepherd hut, tiny house, tree house, and yurt. In any case, make sure to provide basic amenities and furnishings such as bathroom, electricity, internet access, kitchen, and toilet, among others. Also, prepare mattresses, blankets, chairs, charging stations, and other essentials. At the end of the day, you are furnishing the place to help your customers achieve the luxury camping experience. Doing so can be fun and fulfilling as you try to figure out what makes a glamping site effective and attractive for your guests.
4. Glamping can be a great family business.
A glamping business can be run by the entire family. The parents can handle and oversee the operations while the children can assist in running errands, performing routine chores, or even in doing basic accounting and social media marketing. Simply put, being in the glamping industry can be a great way to train youngsters into developing entrepreneurial habits and mindsets early on.
5. You can make meaningful connections with the local community.
For example, you can connect with local farmers to buy fresh produce. You can also check out local crafters and sellers when you need to purchase decors and furniture for your business. As you build connections, they can also help potential guests find you and your business.
6. It’s a business model that brings you closer to nature.
Another wonderful thing about having a glamping site is the lovely environment. You will always be surrounded by the beauty of nature. It’s definitely a healthy place for your family and your guests. If you’re tired of the hustle and bustle of living the city life, this type of business can be a great way to earn money while relaxing in natural space.
6 Cons of a Glamping Business
1. Starting a glamping business requires a huge amount of investment.
The first major drawback of building a glamping site from scratch is the high startup cost. Owning a land is a must plus tents can cost as much as $10,000 each, depending on its type, size, and features. In addition to the furnishings, you’ll have to spend on local licensing, maintenance costs, property taxes, and more.
2. Finding the right location can be a challenge.
The best glamping spots are usually those that are located in private, picturesque locations. This could be in or near urban areas or coastal towns people often frequent because of tourist attractions. A common challenge here, of course, is to find a good location that attracts guests and is not saturated at the same time. Competition can be tough among glamping companies and Airbnb hosts alike.
3. Business requirements can be strict in some areas.
Local laws and regulations regarding the glamping business generally vary from one location to another. Pay close attention and check out existing local regulations as some areas may implement strict requirements compared with others. Remember that non-compliance may mean expensive fees and fines, if not the total shut down of your operations.
4. Attracting customers can be difficult, especially if you’re new in the industry.
Attracting a continuous influx of customers can be hard when you’re starting out in the industry. You’ll have to earn the trust of your potential guests by getting a lot of positive reviews, plus you’ll have to work hard in promoting your brand. In addition, slower months may even mean lesser bookings.
5. Maintaining a glamping campground can potentially mean long hours of work.
Your glamping site may initially require much of your attention. As mentioned, you will need to be aggressive in marketing your new company. This means using social media strategically and listing your business on different platforms, such as Airbnb. You’ll also need to respond to customer inquiries promptly. Cleanup and maintenance can be time-consuming as well, especially if you encounter terrible guests.
6. Scaling your business will not be easy.
Considering all the factors mentioned, scaling a glamping business may not be easy. Glamping startup cost and operating expenses can be high, so it may take a while before you can put up sites in new locations.
What is glamping?
Glamping literally means “glamorous camping.” This type of camping combines outdoor recreation and nature enjoyment with modern amenities. Compared with traditional camping, glamping is fancier and more luxurious. Glampers (people who go glamping) have access to comfortable accommodation. They stay in big tents, cabins, cottages, lighthouses, tree houses, and yurts, among others. These facilities often have air conditioning, beds, electricity, kitchens, private bathrooms, running water, WiFi internet, and more.
Why is glamping a good business?
Glamping is a good business because its market size continues to grow each year. More travelers today are now seeing the value of booking short term rentals (such as Airbnb, glamping sites, etc.) over conventional hotels and motels. That said, glamping is clearly becoming a popular global trend, particularly among young nature-lovers who prefer its contemporary vibe compared with the hassles and discomforts of traditional camping.
Who is the target audience for glamping?
Well-to-do, nature-loving travelers are the target audience for glamping. Avid glampers are usually those between the ages of 18 to 31 years old. According to online data, 60% of the glamping market in North America are Gen Zers and Millennials.
Where should you list your glamping business?
Some sites where you can list your glamping business include:
1. Airbnb
Known today as the world’s foremost site for vacation rental hosts, Airbnb allows glamping owners to list their offerings. The platform showcases “wishlist-worthy glamping stays” that bring “a little glamor to the great outdoors.”
2. Glamping Hub
Glamping Hub is known as “one of the world's leading luxury camping websites.” They help users find, read reviews, and book great glamping getaways across the globe.
3. Hipcamp
Hipcamp is a US-based resource with the goal of revolutionizing camping in the country, believing “humans in nature bring out the best of human nature.” Their website lets users discover amazing outdoor spots for cabins, glamping, RV camping, and treehouses, among others.
4. Pitchup
Pitchup offers free listings for property managers who want to catch the attention of their target market. So far, the website has over 22 million site visitors per year. Their database contains “5,344 campsites, glamping sites and holiday parks throughout the UK, Europe and the Americas.”
5. The Dyrt
The Dyrt claims to be “the largest source of information for campgrounds throughout the United States.” Through their website, users can check out glamping spots, campgrounds for tents, cabins, RVs, and more.
How much does it cost to start a glamping business?
Starting a glamping business can cost up to $18,000 on average. In general, the ballpark range is somewhere from $10,000 to $27,000. The expenses include business licenses, insurance, furnishings, maintenance, utilities, website creation, and others. In some cases, a glamping tent alone can cost as much as $10,000. Take note that if you’re not a property owner, you’ll need to invest a significant amount on land acquisition as well.
What is the growth potential for a glamping business?
The glamping business has great growth potential, with sources reporting it will be a $7.11 billion market by 2031. As more travelers explore alternative accommodation options, short term vacation rentals will continue to thrive on a global level. This presents glamping business owners with opportunities to earn a sizable income.
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Conclusion
With extensive research, ample funding, and the right marketing strategy, you too can succeed in the glamping industry. As you place your business in areas that attract a high volume of tourists (such as beaches, ski resorts, state parks, etc.), you can boost your earning potential.
Of course, starting your own lead generation company can also be a lucrative idea. It requires a lower capital requirement and is not as time-consuming to run as a glamping business. Instead of maintaining tents and campgrounds, your work mainly focuses on ranking business websites. The goal is to attract organic search engine traffic for their services. You can achieve this by targeting location-specific keywords (“cleaning company Salt Lake City” or “tree service Tahoe City CA”). As you drive their sites to top results, you can look forward to earning a handsome income each month. For example, a tree service lead gen website I built in 2015 continues to make me a passive income of up to $2,000 per month. Just imagine the earning potential of having multiple high-ranking business websites!
