The numbers don’t add up
We have thought about a sublet scheme for owners to allow the Park to rent out their holiday homes when they are not using them. However, when running the numbers they simply don’t stack up. We have our own fleet of 50 caravans and lodges that we run to a very high level, and we run a low-quantity-high-quality model. That is, 1) it wouldn’t be in our interest to split the margin on a booking with an owner and compete with our own hire fleet, and 2) the volume of bookings per unit is so low and the margin split would be so small that the revenue per customer in a sublet scheme would not be significant enough to offset pitch fees or the real cost of subletting.
What is the real cost of subletting?
Often prospective customers think purely in financial terms about holiday homes, but holiday homes here are not a financial investment. Think about the following value propositions of a holiday home that are lost if subletting:
- You can leave whatever you like in your holiday home and pack light when you go on holiday – no need to take your whole wardrobe or your air fryer;
- It’s always available to for you to use, whether a planned anniversary trip or a spontaneous getaway after a bad day at work – no need to book in (if it’s free);
- It is your happy place, your pride & joy that you and yours treat with the same love and care – no chance of a stag do trashing it the week before your birthday trip.
Does it make holiday home ownership unaffordable?
Holiday home ownership is a wonderful investment in yourself, your family, and your friends – it is not a financial investment. We want this to be our customers’ happy place, not another form of workplace – it is not a business opportunity.
We do not want to overstretch people. We do not want to encourage people to take on something more than they can afford: we are looking for long-term, multi-generational customer – not quick sales and lots of churn. We believe that trying to disguise or offset the costs of ownership is a sales tactic aimed at selling caravans, not retaining customers.
in conclusion
Subletting fundamentally changes the nature of holiday home ownership. We want this place to be everyone’s happy place, not a stressful place: customers should not be nervous about affording pitch fees if their caravan hasn’t been rented out enough; customers shouldn’t have to worry about who’s been in their holiday home before them; customers shouldn’t be prevented from holidaying in the six weeks’ holidays because it’s a popular time for rentals; customers shouldn’t have to clear out all their belongings at the end of their stay. This might work for some parks and owners, but it doesn’t work for us.