Introduction
Starting a glamping business involves more than just setting up a few tents in a picturesque location. Proper budgeting is crucial to ensure that your glamping venture is successful and sustainable. Unfortunately there is no easy breakdown as every state, location, site, structure, and offering is unique and as such, will cost differently.
This guide will break down the key financial considerations, helping you plan for both upfront and ongoing costs. By understanding these financial aspects, you can minimize surprises and build a solid foundation for your glamping business in Australia.
We have split the budget into 2 sections: Upfront and Ongoing Costs
If you’d prefer to listen or watch instead, feel free to play the video.
Summarised Version
Continue scrolling down to read the detailed version
Upfront Costs
- Site Access: Ensure road access for guests and supplies.
- Example Scenario: Building a gravel road to a remote forest site to accommodate guest vehicles and delivery trucks.
- Examples: Paved roads, gravel paths, signage for directions.
- Service Connections: Install utilities like electricity, water, and waste systems.
- Example Scenario: Installing solar panels and a water filtration system for an off grid location.
- Examples: Solar panels, water tanks, septic systems.
- Foundations/Platforms: Set up stable bases for structures.
- Example Scenario: Constructing wooden decks for glamping tents on uneven terrain.
- Examples: Concrete slabs, wooden decks, steel frames.
- Structures: Cost of purchasing glamping domes, tents, etc.
- Example Scenario: Investing in luxurious glamping domes that can withstand harsh weather.
- Examples: Safari tents, yurts, tiny houses.
- Internal Fit Outs: Furnish interiors with beds, furniture, and fixtures.
- Example Scenario: Outfitting a glamping dome with high-end furniture and decor.
- Examples: Beds, sofas, lighting fixtures.
- External Fit Outs: Add decks, outdoor furniture, etc.
- Example Scenario: Installing outdoor seating areas with fire pits for communal gatherings.
- Examples: Decks, outdoor furniture, BBQ areas.
- Landscaping: Enhance site aesthetics and functionality.
- Example Scenario: Planting native shrubs and creating pathways to enhance the natural beauty of the site.
- Examples: Gardens, walkways, lighting.
- Permits and Licenses: Pay for regulatory paperwork.
- Example Scenario: Acquiring building permits and environmental clearances for a new site.
- Examples: Zoning permits, environmental impact assessments, health and safety approvals.
- Security Measures: Install cameras and locks.
- Example Scenario: Setting up surveillance cameras and secure locks to ensure guest safety.
- Examples: CCTV cameras, smart locks, security lighting.
- Initial Marketing and Launch: Budget for marketing campaigns.
- Example Scenario: Running an ad campaign to promote the grand opening of the site.
- Examples: Social media ads, website launch, local event sponsorships.
- Staff Training: Train your staff to provide excellent service.
- Example Scenario: Conducting a weeklong training program for new staff members on customer service and safety protocols.
- Examples: Customer service workshops, safety training, teambuilding activities.
- Consultancy Fees: Hire experts for specialized advice.
- Example Scenario: Consulting with a landscape architect to design the site layout.
- Examples: Business consultants, landscape architects, marketing experts.
Ongoing Costs
- Booking Systems: Software and platform fees for online booking.
- Example Scenario: Subscribing to a booking management software to streamline reservations.
- Examples: Booking software, payment gateways, channel managers.
- Cleaning Fees: Regular cleaning to maintain standards.
- Example Scenario: Hiring a cleaning service to maintain guest cabins weekly.
- Examples: Housekeeping services, cleaning supplies, waste management.
- Linen Updates: Laundering and replacing linens.
- Example Scenario: Replacing worn-out bed linens and towels every few months.
- Examples: Bed sheets, towels, pillowcases.
- General Maintenance: Routine repairs and check-ups.
- Example Scenario: Conducting monthly inspections and repairs of glamping structures.
- Examples: Repair services, maintenance tools, replacement parts.
- Utility Bills: Costs for electricity, water, internet.
- Example Scenario: Monthly expenses for electricity and internet service.
- Examples: Electric bills, water bills, internet bills.
- Staff Salaries: Wages for your employees.
- Example Scenario: Paying competitive wages to retain skilled housekeeping staff.
- Examples: Salaries, bonuses, employee benefits.
- Marketing/Website: Ongoing advertising and site maintenance.
- Example Scenario: Running seasonal marketing campaigns to attract new guests.
- Examples: Social media ads, SEO services, website hosting.
- Insurance: Liability and property insurance.
- Example Scenario: Paying annual premiums for comprehensive insurance coverage.
- Examples: Liability insurance, property insurance, worker’s compensation.
- Seasonal Updates: Costs for heating or cooling solutions.
- Example Scenario: Installing heating systems for winter and fans for summer.
- Examples: Heaters, air conditioners, seasonal decor.
- Pest Control: Maintain a healthy environment.
- Example Scenario: Regular pest control services to prevent infestations.
- Examples: Pest control services, insect repellents, rodent traps.
- Emergency Fund: Reserve for unplanned expenses.
- Example Scenario: Setting aside funds for unexpected repairs due to storm damage.
- Examples: Contingency funds, savings accounts, emergency kits.
- Property Taxes: Ongoing taxes on land and property.
- Example Scenario: Annual payment of property taxes to local council.
- Examples: Land taxes, council rates.
Detailed Version
Upfront Cost
1) Site Access
Ensuring your site is accessible by road or other means is crucial for the arrival of both guests and supplies/maintenance. Depending on the location, you may need to invest in building or improving access roads. This can include paving, grading, and possibly even creating new routes through your property. Accessibility not only enhances the guest experience but is also essential for the delivery of supplies and maintenance services. Gravel roads are usually the most cost effective way to get most vehicles to site (remember that most of your guests will be from the city and may not have 4×4). Just remember that gravel roads can wash away over time (especially if not prepared properly) so factor this into your overall budget both initially and ongoing.
Example Scenario: Building a gravel road to a remote forest site to accommodate guest vehicles and delivery trucks (both for maintenance and building the glamping site).
2) Service Connections
Connecting essential utilities like electricity, water, and waste systems is a significant upfront cost. The installation of these services can be complex, requiring qualified tradies. Costs will vary depending on the proximity of your site to existing utility lines (if connecting to the current system, whether on/off-grid) and the type of services you plan to offer. For example, off-grid locations may require alternative solutions such as solar panels and rainwater collection systems. Collecting both solar and water and storing it is more complex than you might think. Variables such as the sun’s position throughout the year, what happens if a tree falls on your only water tank or a pipe or fitting blows, draining you of all your water.
3) Foundations/Platforms
Setting up stable bases for your glamping structures is critical for safety and comfort. This can range from simple wooden decks to more permanent concrete foundations. The type of foundation will depend on the structure you choose and the nature of your site. Investing in solid foundations can save you from future headaches related to shifting or unstable structures. Australia is infamous for white-ants. Certain timbers would be out of the question for these sites so steel may be a better option in these cases.
Most Aussies do prefer a beautifully placed deck overlooking their stunning property. Just remember that decks tend to be more expensive in MOST cases (depending on the gradient of the site primarily) than a concrete slab.
4) Structures
The core cost of your glamping business will be the glamping structures themselves. Whether you opt for luxurious domes, safari tents, yurts, or tiny houses, each option comes with its own price tag. Consider the durability, comfort, and aesthetic appeal of each structure type. High-quality structures might be more expensive initially but can offer better longevity and guest satisfaction.
There are quite a diverse range of glamping structures with just a diverse range of costs, not just for purchasing but for installing and getting them serviceable.
The lower end of the scale are your bell tents, which I personally think is a cheap and cheerful way to get your head into the door. For our prospects with a tight budget that want to dip their toe into the water before diving into the world of glamping, I highly recommend bell tents. Cost effective, easy to set up/pack down, and still make a great ROI (and the site is perfect to upgrade to a dome later on 😉
The high end of the scale are definitely your tiny homes, container homes, A-frames, cabins etc. Whilst there is an arguement to the validity of these being glamping structures, they still provide the same overall experience to the end user. A comofrtable place to stay, whilst immerse by the natural surroundings. Most of these options provide the convenience of being kitted out with amenities. With that comes a much higher price tag as well. Being in the tiny house community for a number of years now, the 2 big points that i mention around these moveable homes is that you still need to connect your services to them (though some do have solar systems installed, just need to connect and store water and a waste management system) and that many of these homes cannot be moved by the average person. These are expenses that need to be mentioned in our blog on costs.
Then you have the middle range. Think domes, yurts, safari tents etc. They give a more luxurious level to the glamping experience than your low-end, whilst being more cost-effective than the high-end structures.
Even with this, you still have different sizes of each mentioned structure but we will cover internal and externals throughout this blog.
5) Internal Fit Outs
Furnishing the interiors of your glamping structures is essential to create a comfortable and appealing environment for your guests. This includes beds, furniture, lighting, and other fixtures. Depending on the level of luxury you aim to provide, costs can vary widely. High quality, durable furnishings will enhance the guest experience and reduce the need for frequent replacements.
Internals don’t just mean furnishings however. Amenities, heating and cooling, and technology are all factors in internal fitouts. Glamping is all about comfort in nature. Comfort can have different meanings to different people. Some people absolutely NEED a toilet inside their structure. Some are happy with that outside (albeit close to the site of course, no-one wants to do the midnight runs in the middle of winter through a forest with the boogeyman lurking nearby).
Discussing with many who are already in the glamping industry, it amazes me the variety of guests that they have. Some people give 4 stars simply because there is no Wi-Fi or reception. Others give raving reviews over the lack of technology/reception on offer. Some can’t stand composting toilets while others embrace it. My recommendation is to first think about your ideal target market. A middle-aged professional couple from Sydney, a young family from Perth, a small group of friends celebrating a birthday. Think about what their needs and wants are. Then factor this into the budget that you have. Comfort doesn’t need to be expensive. Comfort needs to be comfortable. I’ve seen many a glamping accommodation with 2nd hand furniture, with home built walls, decks etc (call it rustic, she’ll be right) and people love it (correction, the RIGHT people will love it.
6) External Fit Outs
Enhancing the exterior of your glamping site with decks, outdoor furniture, and other features can significantly improve the guest experience. Consider adding amenities like fire pits, BBQ areas, and outdoor seating to encourage guests to enjoy the natural surroundings. These features not only add value but also create opportunities for unique marketing angles.
Remember that, unless your guests are sleeping, it is pouring with rain, or it is freezing cold, chances are, your guests are outside. This is why they are glamping, to get outdoors. Take advantage of this. Chances are, if you are reading this, you have a rural property. As vast as Australia is, most Aussies live in cities. They don’t know what a cow looks like in real life (yes they saw photos in books as kids but they haven’t stood next to one before). What you may take advantage of in a rual setting, others would love to experience (and pay for I might add). This doesn’t even include international tourists wanting to see our unique and diverse flora and fauna.
Take advantage of this. A simple firepit (remember that many city people don’t know how to light and extinguish fires, and also remember fire bans exist, but you already knew that) is an entry to the soul. To the present moment. A walk to your dam, leaving a small amount of animal feed for your goats or patting that prick of a shetland pony that bites everyone but you can’t give away because he’s just so cute (yeah i’m talking about you GEORGE).
Most External fitouts don’t need to be expensive. The ones that are, are usually because you have decided to place your amenities (bathroom and/or kitchen) outside. I have seen some simple outdoor bathroom/kitchen amenities that just look perfect because they had the rustic charm, used natural materials and made the most of it. I have however seen some amazing outdoor amenities that were probably more expensive than the entire glamping structure, fitted out.
7) Landscaping
The surroundings of your glamping site play a crucial role in creating an attractive and enjoyable environment. Landscaping can range from basic maintenance to more elaborate designs that incorporate native plants, walkways, and lighting. A well landscaped site can set the tone for your glamping business and attract more guests.
Example Scenario: Planting native shrubs and creating pathways to enhance the natural beauty of the site.
Examples: Gardens, walkways, lighting.
8) Permits and Licenses
This section is just way too long to have a little pointer in a blog piece on budget. I will just use this section to cover our arse (though I do have a certain opinion on our lovely legal system, especially councils, which I may share, if I haven’t already at the time of you reading this). Navigating the regulatory landscape is essential to avoid legal issues down the line. This includes obtaining the necessary permits and licenses for land use, building, and operation. Fees can add up quickly, so it’s important to budget for these expenses. Consulting with local authorities early in the planning process can help you understand the requirements and associated costs.
Example Scenario: Acquiring building permits and environmental clearances for a new site.
Examples: Zoning permits, environmental impact assessments, health and safety approvals.
9) Security Measures
Ensuring the safety and security of your guests is paramount. Investing in security measures such as cameras, locks, and lighting can protect your property and give guests peace of mind. While these measures involve an upfront cost, they can prevent more significant losses and liabilities in the future. This can also be what you are doing with your gates throughout the property, key exchange, and covering yourself for liability. Just remember that you are going to be dealing with the general public. Whilst MOST people are good citizens, there are always a select few that we must cater society for.
Example Scenario: Setting up surveillance cameras and secure locks to ensure guest safety.
Examples: CCTV cameras, smart locks, security lighting.
10) Initial Marketing and Launch
Launching your glamping business with a strong marketing campaign is crucial to attract your first guests. Budget for online and offline marketing efforts, including website development, social media advertising, and local promotions. Creating a buzz around your launch can help you gain initial traction and build a loyal customer base. I have seen equally luxurious glamping offerings launch. One pumped a lot of time, energy and resources into their opening, while the other went for a more soft opening. 1 year after first launch, the former is at 60-70% occupancy, year round, while the other is booked most weekends and the occasional mid-week booking. There are of course many variables to consider but marketing would be one of the biggest.
Example Scenario: Running a social media campaign to promote the grand opening of the glamping site.
Examples: Social media ads, website launch, local event sponsorships.
11) Staff Training
Well-trained staff can make a significant difference in the guest experience. Invest in training programs to ensure your team is knowledgeable, friendly, and efficient. This includes training on customer service, safety protocols, and the unique features of your glamping site. A well-prepared staff can enhance guest satisfaction and encourage repeat business. From cleaners to groundskeepers, every task requires a standard operating procedure (SOP) and every SOP can be improved.
Examples: Customer service workshops, safety training, teambuilding activities, running through SOP together.
12) Consultancy Fees
Hiring experts for specialized advice can be invaluable, especially if you’re new to the glamping industry. Consultants can provide insights on site selection, design, marketing, and operations. While consultancy fees can be significant, the expertise they bring can save you time, money, and potential mistakes.
Example Scenario: Consulting with a landscape architect to design the site layout.
Examples: Business consultants, landscape architects, marketing experts.
Ongoing Costs
1) Booking Systems
Managing reservations efficiently is crucial for your glamping business. Investing in a reliable online booking system can streamline the process and improve customer satisfaction. Consider the ongoing software and platform fees as part of your operating budget. These systems often include features like automated confirmations, payment processing, and availability management. Just remember that the convenience of these booking platforms aren’t without a price, with some platforms charging as much as 20 F@#KING PERCENT of the total cost of the guest’s stay.
Example Scenario: Subscribing to a booking management software to streamline reservations.
Examples: Booking software, payment gateways, channel managers.
2) Cleaning Fees
Maintaining a clean and hygienic environment is essential for guest satisfaction. Budget for regular cleaning services, including housekeeping for guest structures and maintenance of communal areas. High cleaning standards can enhance your reputation and encourage positive reviews. Even if you do this yourself, it is still time that you are spending on the cleaning (which hopefully you are paying yourself for. Trust me, as a small business owner myself, I get it. Just make sure you are doing it for a greater purpose at the end of the day).
Example Scenario: Hiring a cleaning service to maintain guest cabins weekly.
Examples: Housekeeping services, cleaning supplies, waste management.
3) Linen Updates
Regular laundering and periodic replacement of linens are necessary to maintain comfort and hygiene. Budget for ongoing costs related to towels, bed sheets, and other textiles. High-quality linens not only improve the guest experience but also have a longer lifespan, reducing replacement frequency. It does not matter how luxurious or amazing the guest experience is, if they are tucking themselves into what feels like 80 grit sandpaper used in a rescue shelter as a puppy pad, that is going to be the focal point of the review.
Example Scenario: Replacing worn-out bed linens and towels every few months (P.S. if you have a rescue shelter nearby, they would love to have these).
4) General Maintenance
Routine check-ups and repairs are essential to keep your glamping site in top condition. This includes maintenance of structures, utilities, and amenities. Regular upkeep can prevent minor issues from becoming major problems, ensuring a smooth operation and positive guest experiences. Just remember that everything has an end life. Water pumps die, lights blow, A/C needs to be regassed etc.
Example Scenario: Conducting monthly inspections and repairs of glamping structures.
Examples: Repair services, maintenance tools, replacement parts.
5) Utility Bills
Now I know most of you reading this are going to be like, “but mate, I live off-grid, I don’t have any bloody utility bills.” Alright Dazza I get it. You may not have electricity and water main connections and subsequently those bills (even though I’m sure you pay council rates which cover your non-existent connections anyway). You may still need gas for your BBQ and hot water systems, and possibly internet connection if that is what your guests are after. Water can also run out, which may mean that you have to bring in a water truck to fill up your tanks. Electricity also runs out too, so your genny will need to be topped up as well.
In the right context, firewood may also be a utility. If you are lucky enough to have enough fallen trees to build the Ark then awesome, but not everyone is so lucky. Firewood is expensive, so factor that in.
Consider energy efficient solutions and water saving devices to reduce these costs. Accurate budgeting for utilities can help you manage cash flow and avoid unexpected expenses.
6) Staff Salaries/wages
Paying competitive wages to your employees is crucial for retaining a motivated and effective team. Budget for monthly or weekly wages, including any benefits you plan to offer. Just remember, YOU too are any employee so PAY YOURSELF. Happy and well compensated staff can significantly enhance the guest experience and contribute to the overall success of your business.
Example Scenario: Paying competitive wages to retain skilled housekeeping staff.
Examples: Salaries, bonuses, employee benefits.
7) Marketing/Website
Ongoing marketing efforts are necessary to keep attracting guests and maintaining visibility. Budget for online advertising, social media campaigns, and website maintenance. Consistent marketing can help you reach new audiences and keep your occupancy rates high.
If you think your word-of-mouth or reputation is sufficient, just remember, Coca-Cola and Amazon spend billions every year on marketing, and you should too (jeez that’d be nice). Social media is cheap and easy. I get it though, social media can be a drain. It doesn’t have to be overly professional. If you have a unique offering and are genuine in nature, people will want to stay.
8) Insurance
Liability and property insurance are essential for protecting your business against potential risks. Budget for insurance premiums as an ongoing cost. Comprehensive coverage can safeguard your investment and provide peace of mind. Nothing else needs to be said really.
9) Seasonal Updates
Adapting your glamping site to different seasons can involve additional costs. This includes installing heating solutions for winter, cooling systems for summer, and other seasonal adjustments. Budget for these updates to ensure guest comfort year-round. Some more permanent structures may have these fixed permanently but this blog is covering all glamping structures.
Example Scenario: Installing heating systems for winter and fans for summer.
Examples: Heaters, air conditioners, seasonal decor.
10) Pest Control
Maintaining a healthy and comfortable environment requires regular pest control measures. Budget for ongoing pest management services to prevent infestations and protect your property. Effective pest control can enhance the guest experience and prevent potential health issues.
Example Scenario: Regular pest control services to prevent infestations.
Examples: Pest control services, insect repellents, rodent traps.
11) Emergency Fund
Setting aside a contingency reserve for unplanned expenses is a wise financial practice. This emergency fund can cover unexpected repairs, replacements, or other urgent costs. Having a reserve can provide financial stability and peace of mind.
Example Scenario: Setting aside funds for unexpected repairs due to storm damage.
Examples: Contingency funds, savings accounts, emergency kits.
12) Taxes
Budget for ongoing land and other taxes as part of your operating expenses. Understanding the tax obligations for your property can help you manage cash flow and avoid penalties. Consult with a tax advisor to ensure compliance and accurate budgeting.
Example Scenario: Annual payment of property taxes to local authorities.
Examples: Land taxes, GST, PAYG, council rates.
conclusion
Proper budgeting is the backbone of a successful glamping business. By understanding and planning for both upfront and ongoing costs, you can create a financially sustainable operation that not only attracts guests but also ensures a smooth and enjoyable experience for everyone involved. From initial site access and service connections to regular maintenance and marketing, each financial aspect plays a crucial role in the overall success of your glamping venture. With careful planning and prudent management, you can turn your glamping dreams into a thriving business reality.