Ted’s guide to establishing a motorhome and caravan park

Ted and Jackie Howard-Jones opened Cholsey Grange Farm Caravan site in 2008. We asked them for some tips and guidance for those thinking of setting up a similar enterprise, gaining an insight into what they have learnt along the way.

What do you need to get started?

When we started we offered the bare minimum, we offered five grass pitches in one of our fields that had a stunning view, running water and nearby waste disposal. We didn’t offer shower or toilet blocks or electricity.

See also: Do I need planning permission for glamping, camping or caravanning sites?

Planning permission (or an exemption) will be required if you are planning to site more than five caravans or motorhomes for more than the 28 days per year as permitted by the Council. Equally, if you are looking to construct buildings or other structures such as toilet blocks you will require planning permission. Refer to the Caravan Sites and Control of Development Act 1960 for more information.

Offering electricity is important these days and people expect it. We learnt the hard way and it was only after two years that we installed electricity with all the pitches now having 16-amp EHU (Electric Hook Up).WIFI is something else we have also introduced to the site which is also a real draw for people and worth doing.

What are the costs associated with setting up and maintaining a caravan site?

This very much depends on what you are offering and where you are based. Below are an example of some of the costs involved: (please note these are examples of costs and the list is not exhaustive. A feasibility forecast is recommended prior to making any decisions)

See also: Feasibility budgeting for new businesses

• Groundworks i.e. levelling, fencing, access for caravans and motorhomes
• Planning if required
• Installation of a running water supply, sewage and wastewater disposal
• Infrastructure i.e. toilet and showers blocks, this is not essential
• Security i.e. gates, access barriers
• WIFI can be up to roughly £400 to set up when using an existing line
• Online booking system, approximately £10 per month
• Installation of electricity, approximately £1,000 to £5,000 depending on existing supply and site distance from supply
• Membership subs, £49 per year for The Caravan and Motorhome Club
• Site maintenance including grass cutting, water testing, sewage removal
• Ongoing water and electricity bills
• Insurance
• Marketing including website design

Are there any organisations I should consider joining?

There are many membership organisations specific to this sector, but the main two ones are The Caravan Club and The Camping and Caravanning Club. We are members of the Caravan Club and for a cost of £49 per year, the support and network the membership offers is very valuable.

From the start, we have been a ‘Certified Location’ (CL) which requires an inspection by the Club and an annual recertification providing assurance to our visitors that we have met a certain standard. The accreditation also means that site is exclusively available to other members of The Caravan Club meaning we are generally confident with the type of people we will attract to the site.

How have you gone about marketing the business?

As members of The Caravan Club we are able to market the site on their website through our own mini microsite and people are also able to leave reviews which, in this day and age, is a very popular means of ‘sussing out’ accommodation before you visit.

In the initial stages of business, a listing on this type of site is really valuable to get the visibility you need as you don’t necessarily have the turnover to do this yourself. The site also has a discussion forum open for anyone to access. I often take part in this as it’s another way to get your name out to the target audience.

See also: Five free forms of marketing

In terms of social media, there are many pages available to post on such as ‘Caravans R Us’ and ‘The Wobbly Box’ which again are very good for visibility. We do have our own Facebook page but have found it not to be the most effective marketing tool for targeting our demographic.

With the right permissions, we do capture as much data about our visitors as possible, and therefore we engage in e-mail marketing, through the likes of MailChimp three to four times a year, sharing key information such as site open and close dates, news from the farm etc.

We’ve also made a conscious effort to get involved in our local area. There are people around us who also have rural businesses, and the more we’ve got to know them and their businesses the more you start to realise the value of recommendations. We’re even starting to talk about collaborative packages for people who come to stay which is something we will all gain from.

We have purposefully kept our marketing very low cost and it works. It goes to show you don’t have to spend lots on marketing for it to be effective, it’s about doing it well and targeting it directly to your audience.

How important is your website for your business?

After we invested in the electricity and our bookings started to rise, we recognised the need for a decent website that we could tell people about us and what we had to offer.

When designing a website, good photos that ‘show-off’ your site are very important and make it clear what makes your site stand out from the rest. We really push our magnificent views as our main USP, as well as the abundance of wildlife which appeals to the market we are targeting. Make sure you sell your differentiators upfront so people can clearly see what they are getting and keep your messaging consistent across all your marketing material.

We’ve tried to ensure the website hosts as much information needed to convince people to come and stay. For example, we’ve created a local map using Google Maps that highlights all the local attractions. It’s little things like this that make the difference and may make visitors choose you over someone else.

How have you priced your pitches?

Pricing very much depends on your site facilities and location. The Caravan Club quote an average of between £10 to £15 per night per pitch and for the 2017/2018 season, we’ve charged £16 per pitch.

We are lucky enough to be in such beautiful countryside with little competition around us which allows us to do this. If you compare what some people would pay to stay in a hostel, B and B or hotel, the average prices are very reasonable.

We are now in a position where we state a minimum stay of two nights. This may not always be possible at first but it is worth considering as you grow to reduce the level of toing and froing with your guests.

How do you take bookings and payment?

In the past, we’ve had a problem with cancellations and now ask for a 50% deposit upfront to stop the ‘no shows.’

Members of the Caravan and Motorhome Club can search for sites using the Club Directory (paper-based or online) and then book online via our own website. Visitors can’t currently pay online, this is done by BACS or cheque pre-arrival.

See also: A practical guide to online booking systems for tourism or leisure-based businesses

We do give the option for people to call or e-mail us if they wish to make the booking in person but this is becoming few and far between; 80% of our bookings come through our booking and so we don’t have direct contact with these people until they arrive.

The rest of the payment is taken when the party arrives.

Is your business seasonal?

Because we are currently offering grass pitches we have a closed season between the end of October and the end of March. For us, we can’t risk people getting stuck on site during the winter period.

Unless you have access to serviced, hard-standing pitches it can be hard to offer a year-round service, which is worth noting with regard to the spread of your income throughout the year. Equally, the quiet period allows you to undertake any work that may need doing and have a well-deserved rest.

In terms of occupancy, weekends always tend to be our busiest time, with an average of 90% occupancy, with weekdays generally between 40 and 50%.

What are the downsides of running a caravan site?

During the open season, it is very difficult to go away on holiday and have time off, or even downtime, as we run the site ourselves with no outside help. People are always coming and going and you need to be on site as much as possible to deal with any problems or questions. It’s a big time commitment and one you have to be willing to make this sacrifice.

More recently we have found a ‘sitter’ who has come and stayed on site to allow Jackie and I to go away which has been a blessing. There are people out there willing to do this, so it's worth putting the feelers out and finding someone you can trust.

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