Are Glamping Businesses Profitable? Exploring the Startup Costs
Thinking about starting a glamping business but unsure about the financial aspects? Look no further!
In this blog post, we'll dive into the start-up costs associated with glamping businesses in North America. By breaking down the key cost factors, we aim to provide you with valuable insights into the investment required to launch your own successful glamping venture. So, let's get started!
Market Estimates
Glampitech estimates that an average start-up cost for a 10-yurt glamping business in the USA is about $755,000. Their cost breakdown looks like this:
Groundworks and utilities - $350,000
10 yurts with interiors fitted - $300,000
10 hot tubs - $50,000
Permit fees and land surveys - $50,000
Website - $5,000
Total glamping startup cost = $755,000
However, it’s important to note that the start-up costs will vary greatly depending on size, location, and scope of your venture. Regardless of your vision, there are a few areas every glamping start-up will need to consider and budget for. These include:
Property Down Payment
Landscaping, Hardscaping, General Construction
Units, Unit Furnishings
Communal Spaces, Washrooms, Storage Shed, Equipment
Licensing, Permits, Taxes, Insurance
Utilities
Business Management Subscriptions, Marketing, Consultation Fees, Continuing Education
Contingency Funds
Next, let’s dive into exactly what you should consider for each of these areas.
Property Down Payment
Finding the perfect piece of land is a crucial step in starting a glamping business. While raw land may seem more affordable at first, hidden costs such as surveys and utility installations can add up – and boy do they add up quickly! However, there are options to think outside of the box. My dream property would be a post-forest fire land where it no longer has any structures, but the septic and other utilities still remain.
During this step, remember that you won’t need to account for the full price of the land in your start-up costs, rather you’ll only need to make a down payment. And as a bonus, consider applying for a government-backed SBA loan that requires an even smaller down payment.
Landscaping, Hardscaping, General Construction
Creating a captivating glamping site involves essential tasks such as landscaping, hardscaping, and general construction. Think trails, pathways, landscaping to create privacy for each units. A little can go a long way in the very beginning and there will always be time to refine the overall look in the future. Just account for the essential projects to get your venue up and running.
Glamping Units, Unit Furnishings
Of course, the most exciting part of the start-up journey is choosing which glamping units you’re going to provide. Based on the products I’ve seen on the market, you can’t really go wrong. With such high quality products, it mostly comes down the specific unit features you’re looking for.
Sidenote – if you’re looking for pole tents, here are 3 of my favorites!
In this process, also remember that you’re going to need to budget for the furnishings to fill each unit, such as bed frames, mattresses, linens, etc.
Oh, and don’t forget to account for shipping costs of the glamping units!
Communal Spaces, Washrooms, Storage Shed, Equipment
Will your venue be offering communal spaces for the guests to mingle? Will there be on-site washrooms? And you’re going to need your own space to store equipment, right? Don’t let these things slip your mind.
Licensing, Permits, Taxes, Insurance
As annoying as it can be, running a glamping business requires fulfilling legal obligations. Acquiring the necessary licenses and permits, paying taxes, and obtaining comprehensive insurance coverage are essential steps. The costs associated with these factors can vary depending on your location and the specific requirements of your area. It is important to research and allocate funds accordingly to ensure compliance and protect your business.
Utilities
Again, the cost of installing and maintaining utilities depends on factors such as the location of your glamping site and the availability of existing infrastructure. Honestly, since the construction costs for utilities varies so much, I recommend working with a contractor to get more accurate quotes for your specific area and landscape.
Business Management Subscriptions, Marketing, Consultation Fees, Continuing Education
Don’t forget the online business management side of the story! Running a successful glamping business involves ongoing management, effective marketing strategies, and staying updated with industry trends. These costs contribute to building a strong brand presence, attracting guests, and ensuring your business thrives in a competitive market.
Contingency Funds
Preparing for unexpected expenses or emergencies is crucial in any business venture. Allocating contingency funds ensures that you have a financial buffer to handle unforeseen challenges without jeopardizing the smooth operation of your glamping business. It's always wise to have a safety net in place.
Understanding the costs involved in starting a glamping business is essential for planning and budgeting purposes. By considering the factors discussed in this blog post, you can gain a clearer perspective on the financial requirements of your glamping venture.
For a comprehensive financial plan tailored to the glamping industry, we recommend purchasing the MyGlampingPlan Financial Plan Template from our website. Take the first step towards accurately calculating your startup costs and setting yourself up for success in the world of glamping!
Download the MyGlampingPlan Financial Plan Template and take the first step toward calculating your glamping business's startup costs accurately. Plan your success today!
