Background
You have in mind to go ahead and set up a 30 pitch campsite on a spare 2 acres you have on your smallholding.
However, you’re in two minds as whether to open up for 8 months or 6 months.
You and family reckon you could probably do with getting away in late August for a break instead of November.
Problem
“I need this campsite to make at least £23,000 net operating profit to meet my target salary. Will I still make that if I close in early September instead of end of October?”
Research
You find the following inputs which you’ll use for your plan:
- Average pitch price per night £22.00
- Average monthly occupancy:
- Mar 30%
- Apr 40%
- May 55%
- June 50%
- July 60%
- Aug 70%
- 184 total nights of trade in the season
- 30 pitches: 15 standard at £19.00 per night / 15 premium pitches at £25.00 per night
- Net operating income percentage: 37%
Solution
Use the Campsite Financial Analyser to calculate the solution to the problem above.
Go To Part 16: https://campsitebusinessplan.co.uk/knowledge-base/3-campsite-business-case-study