Booking Resort Co., Ltd., which provides consulting services specializing in glamping and assists in attracting customers, is providing free support for opening glamping facilities to businesses that have been hit hard by the coronavirus pandemic.
First of all, we will provide an easy-to-understand explanation of the key points of glamping facility management, and provide information that we hope will be helpful to businesses involved in facility development and operation.
The table below summarizes checkpoints when managing glamping facilities.
First, let's talk about the facility development phase.
When developing a glamping facility, it is necessary to comply with various laws and regulations.
First, it is essential to conduct research on urban planning laws, which tend to be hurdles for development.
Since this law is not generally familiar, please contact us if you are unsure of what to check.
The land where it is difficult to conduct a glamping business, such as urbanization control areas and residential housing areas, is the more affordable real estate information is available.
Also, specialized knowledge is required for development work.
Glamping management perspective | Success points for glamping business | |
---|---|---|
Securing business land | Location selection | ・Select a location within 150km of a major city ・When conducting business in a location that is disadvantageous in terms of access, reduce the number of guest rooms and set up a sharp concept. |
Land laws and regulations | ・Confirmation of usage zone (there are places where hotel business is prohibited) ・Forecast the need for a development permit application and the amount of development work | |
Infrastructure development status | ・Confirmation of water and sewage maintenance status.Avoid places without running water ・Choose a location where electrical installation work is easy. | |
Visibility | ・Choose a location that looks great for aerial photography ・Avoid areas with large buildings adjacent to them. | |
land shape | ・Choose a location where the cost of cutting down trees and uprooting trees will not be too high. ・Choose a flat land (significantly affects foundation construction and wood deck construction) | |
Location | ・Choose a location with a good view, such as the ocean, lake, or forest ・Choose an area with plenty of tourist facilities nearby | |
Contract terms | ・Prioritize rental properties to minimize business risks ・When constructing a building on rental property, be careful about rights. |
Next, we will talk about the development concept and competitive advantage of glamping facilities.
As of May 2021, there are approximately 5 facilities nationwide that promote glamping.
Outdoor-related businesses, whose demand has increased due to the coronavirus pandemic, are attracting attention, and the number of businesses entering glamping is also increasing.We must create a facility concept and plan differentiating elements that will overcome the competition among glamping businesses that will occur in the near future.
Additionally, glamping facilities that do not provide meals have recently appeared in order to secure staff and reduce fixed costs.These facilities will eventually be weeded out due to competition.
It is important to create a plan using local ingredients, even if it is a hassle, and to make sure that the meal is one of the motivations for visiting.
Additionally, glamping is a business that focuses on attracting young women.
In fact, consumer survey results show that younger women are more aware of glamping, indicating a high degree of interest.
According to a survey conducted by our company, over 8% of women support glamping and camping. The main premise is to properly respond to basic keywords such as "toilet", "bath facilities", "insect control", and "air conditioner", and on top of that, it is important to have a rich lineup of free and paid activities. This is essential for opening a glamping facility.
Glamping management perspective | Success points for glamping business | |
---|---|---|
Facility concept/competitiveness | Selection of guest room building | ・Cut costs down with a tent (suitable for rented land) ・Whether to commercialize the building (as determined by the civil engineering office) |
Understanding customer acquisition targets | ・Basically, I understand that the customers are mainly young women. ・Not too extreme for families | |
Pricing | ・Understand that high ADR is the key to business success ・Carry out a survey of surrounding competing facilities (ideally a wrap-up strategy) | |
Meal plan planning, ingredient selection | ・Be sure to incorporate local ingredients ・Introduce menus that are popular with women | |
free activities | ・Services such as roasted marshmallows are required. ・All-you-can-drink, all-you-can-eat ice cream, wood chopping experience, etc. | |
paid activities | ・Experiential content such as marine activities ・Stylish BAR services, etc. | |
Securing hot springs | ・Considering turning hourly rental into a paid service ・Even if there is no hot spring source, consider installing a hot water source |
Next, let's talk about achieving high profitability.
In the glamping business, aim to secure an operating profit of 30% or more compared to sales.
Expenses that have a particularly large composition ratio include "personnel costs," "credit fees," "foodstuff costs," and "customer acquisition fees."We have compiled a guideline for each expense ratio, so please use it as a reference.
Glamping management perspective | Success points for glamping business | |
---|---|---|
Achieving high profitability | Credit fee | ・I want to keep the commission rate around 3%. ・If negotiation is not possible, we can introduce you. |
linen costs | ・Set the sales ratio to around 5% ・Keep the cost to around 1 yen per person | |
Personnel expenses | ・Set around 10% to 15% in terms of sales ratio ・Consider turning cleaning costs into variable costs and going cookless. | |
Annual sales per building | ・Aim for annual sales of 1 million yen or more per building ・If there are many guest rooms, consider accommodating pets. | |
Sales promotion expenses, advertising expenses | ・Set within 10% of sales ratio ・Select a partner company with a proven track record | |
Utility costs, fuel costs | ・Set the sales ratio to around 5% ・Do not create a public bath that is free of charge. | |
Food costs | ・You can also bring your own food. ・Set the sales ratio to around 5% |
The great thing about the glamping business is that most of the major costs are variable.If you are familiar with management accounting, you will understand that this feature is noteworthy.
``Businesses with high variable cost ratios and low fixed ratios are less likely to be in the red.''
Glamping is a business with large fluctuations in activity, so if you manage your facilities to take advantage of this characteristic, you can minimize risks.
The table below summarizes the investment plans for glamping facilities that we actually support in development.Please feel free to use it as a reference.
Design fee Building certification application/design fee
Glamping resort●●● | ||||
---|---|---|---|---|
A total of 3 facilities, 3 original tents and 6 dome tents. | Quantity | meter | ||
Dome tent | Including construction work, foundation work, electrical air conditioning work | 2,800,000 | 3 | 8,400,000 |
tent B | Including construction work, foundation work, electrical air conditioning work | 5,000,000 | 3 | 15,000,000 |
Application fee (building confirmation) | Architectural certification application fee for accommodation tent building | 150,000 | 3 | 450,000 |
Application fee (building confirmation) | Architectural certification application fee for BBQ space building | 150,000 | 6 | 900,000 |
BBQ space | Building work, foundation work, sanitary equipment (toilet/shower), electrical work | 8,000,000 | 6 | 48,000,000 |
Wood deck construction | Administration building/4 tent buildings | 1,500,000 | 6 | 9,000,000 |
Administration Building | Including architecture, foundations, electricity, interior, and equipment | 10,000,000 | 1 | 10,000,000 |
monument sign | 10 locations throughout the facility | 800,000 | 1 | 800,000 |
Planting work | Whole facility | 5,000,000 | 1 | 5,000,000 |
Septic tank installation work | 5,000,000 | 1 | 5,000,000 | |
Parking lot paving work | 3,000,000 | 1 | 3,000,000 | |
Administration building furniture | 500,000 | 1 | 500,000 | |
Administration building home appliances | monitor· | 300,000 | 1 | 300,000 |
Administration building kitchen equipment | Double layer sink/refrigerator | 1,000,000 | 1 | 1,000,000 |
Furniture | 500,000 | 6 | 3,000,000 | |
Consumer electronics | 500,000 | 6 | 3,000,000 | |
Consumer electronics | 200,000 | 6 | 1,200,000 | |
BBQ grill | 80,000 | 6 | 480,000 | |
smoke tower | 15,000 | 6 | 90,000 | |
Garbage can | 10,000 | 6 | 60,000 | |
External chairs/desks | 30,000 | 6 | 180,000 | |
Fan heater | 10,000 | 6 | 60,000 | |
Misc & Amenities | 10,000 | 6 | 60,000 | |
Equipment (guest room) | 10,000 | 6 | 60,000 | |
Equipment (kitchen) | 200,000 | 1 | 200,000 | |
Equipment (administration building) | 200,000 | 1 | 200,000 | |
Pick-up vehicle | 2,500,000 | 1 | 2,500,000 | |
Total | business investment plan | 118,640,000 |
The table below is the income and expenditure plan.This glamping facility has easy access from the city and is located in a prime location with ocean views.
Taking depreciation costs into account, the business plan is such that the initial investment of 1 million yen shown in the table above can be recovered in 1,864 years. *Corporate taxes, etc. are not taken into consideration.
At Booking Resort Co., Ltd.,In principle, development support for glamping facilities is provided free of charge.We are happy to do so.Please feel free to contact us.
List of know-how for attracting customers and off-season measures
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