Instant ROI: How cabins can increase your monthly revenue
Converting under-utilized sites into higher yield areas
Since the introduction of COVID-19 into our climate, consumers have been trying to find ways to keep themselves occupied, while staying safe. Camping has become one of the most popular activities for British Columbians, with over 3.1 million campers flooding to campgrounds in 2021.1 While many of these outdoor fanatics are repeat customers, over 500,000 people planned to camp for their first time last season, and 77% of all campers were considering these trips in the late summer or into the fall.2 This is a very important statistic as this could imply that inexperienced campers, perhaps without a lot of equipment and gear, may be interested in permanent camping structures like cabins that are outfitted with everything they need, especially coming into the colder off-season months.
Permanent structures are becoming a more popular option for campground guests, specifically those who are new to camping and recreation. Cabins provide a dry, secure space that can host an entire family comfortably, with potential added benefits such as electrical, plumbing, beds, or even TVs. While RVs provide similar features, rentable structures offer a solution to people who cannot afford the long-term commitment of a recreational vehicle, and typically provide a more unique atmosphere. Furthermore, cabins do not require much from the guest in terms of maintenance, equipment or tools – they are typically “move-in” ready, and thus cater to a wider demographic of clientele.
How much does it cost, and when will I see return?
Investing in long-term solutions not only generates long-term income, but upgrades the aesthetic of your park, and promotes repeat business. Maximizing the space that you already own generates more revenue over the same period of time, and typically requires the same amount of resources. Average rates for tenting sites in BC range from $10 to $30 per party, per night3, compared to a cabin rental that could charge out at $75 – $250 per night. Other than standard yearly maintenance on the structure, the amount of additional resources required for a cabin is minimal after initial investment, and is entirely based on the amenities you wish to provide.
Here is an example of a typical pre-fabricated cabin model that PacRim sells.
99 sq.ft. model – including all tongue & groove wall boards, floor boards, roof boards; lockable door; tilt & turn window(s); hardware to construction; metal or shingle roofing package – $5200
Roof & Floor Insulation Package – $1700
Base Material Package – Pressure treated 2”x8” joists; concrete patio stones; screws for install – $980
Total including taxes to lockup (not including assembly or any other finishes) = $8,825.60
Typical camping season is 130 days.
$8825.60 / 130 days = $68 required per day to pay for this investment.
If you charge minimum $75/night for this cabin, you would have this structure paid off within one season, meaning any future season rentals would be pure profit. Additionally, an enclosed structure can be used throughout the winter months if properly outfitted, meaning you could generate income from just one structure, 365 days a year.
Expand your horizons, reach new clients
Diversification is key to targeting new markets and is something to consider when looking to upgrade or spruce up your park. Providing more accessible, comfortable, and affordable options allows for a new generation of clientele and PacRim is here to help you through pre-fabricated cabin kits and out-buildings.
1 Stefan Labbé. “A record 3.1 million campers visited BC Parks this season” North Shore News October 5, 2021.
2 Saskia Boogman with Kamgrounds of America, Inc. “New Research Confirms Canadians Eager to Camp as COVID Restrictions Ease” Cision Jul 15, 2021
3 BritishColumbia.com “Provincial Park User Fees” BritishColumbia.com No publishing date.