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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.
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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 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
CHH USER SURVEY Holiday taking patterns
Average No. of holidays taken in 2002 • 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 Frequency of use Allow use by friends / family?
Holidays taken in 2002 (Destinations)(Percentage of trips) Figures relate to total trips
Alternatives (destinations)(Percentage of trips) 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.
CHH USER SURVEY Motivations and satisfaction levels
CHH USER SURVEY Booking behaviour
Information Sources (renters only) • Been before 39% • Word of mouth 26% • Advert in newspaper/ magazine 13% • Holiday brochure 11% • Internet 5%
CHH USER SURVEY Expenditure Patterns
Comparison of spend figures 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
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)
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 Profile - Owners • 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
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 Profile - Renters • 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?