What’s the ROI on glamping tents?

Glamping tents have become a game-changer for campground owners and RV parks looking to expand their outdoor hospitality offerings. Investing in luxury camping accommodations like safari tents can significantly boost revenue, improve occupancy rates, and create a unique experience that sets your site apart. But what about the financial side? What’s the actual return on investment (ROI) for glamping tents? In this blog, we break down real numbers, payback periods, and revenue projections from successful campgrounds nationwide.

How glamping tents increase revenue compared to traditional camping

One of the biggest advantages of glamping tents is their ability to command premium nightly rates compared to standard campsites. While traditional tent sites or RV hookups may average $30-$70 per night, luxury safari tents typically rent from $150 to $300 per night, depending on location and amenities.

This creates a direct uplift in revenue potential. Consider these key benefits:

• Higher average daily rate (ADR): Luxury tents attract guests willing to pay a premium for comfort and convenience.
• Expanded target market: Attract couples, families, and travelers seeking unique outdoor experiences with hotel-like comforts.
• Longer stays and repeat guests: The enhanced experience encourages longer bookings and return visits.
• Upselling opportunities: Add services like guided tours, fire pits, or welcome packages to increase per-guest spend.

Understanding occupancy rates and seasonal variations

Occupancy rates are crucial to determining your glamping ROI. Successful campgrounds typically report average occupancy between 60% and 80% annually for luxury tents. However, seasonal fluctuations can affect these numbers:

• Peak season: Summer and holiday weekends often see 90-100% occupancy.
• Off-peak months: Occupancy may drop to 30-50%, especially in colder regions.
• Shoulder seasons: Spring and fall can deliver moderate occupancy with potential for special event bookings.

Planning for these seasonal variations can help you optimize pricing strategies and maximize overall profitability. Dynamic pricing can fill lower demand periods while capitalizing on peak season pricing.

Payback periods: how quickly you can recoup your investment

One of the most common questions is, “How quickly will my glamping tent investment pay off?” Based on data from our clients, typical payback periods range from 2 to 4 years, depending on site factors such as location, tent count, and local market demand.

Here’s what influences payback time:

• Initial investment size: A luxury safari tent setup with furnishings generally costs between $20,000 and $50,000 each, including turnkey delivery from Outstanding Tent.
• Pricing and occupancy: Higher nightly rates and occupancy levels shorten payback.
• Operational costs: Low ongoing maintenance thanks to durable materials and the 10-year service guarantee helps control expenses.
• Additional revenue streams: Value-added services and upselling can accelerate ROI.

How average nightly rates impact profit margins

Setting the right nightly rate is critical for balancing occupancy and profit margin. With luxury camping, the average nightly rates vary, but $150-$300 is typical for safari tents, depending on location and amenities.

Here’s how different rates affect profitability:

• Lower-end rates (around $150): Attract more bookings but deliver thinner margins.
• Mid-range rates ($200-$250): Optimize occupancy and profitability.
• Premium rates ($300+): Position your tents as exclusive and upscale but may lower occupancy.

Profit margins typically range between 20% and 40% depending on operational efficiency and management of variable costs like cleaning, utilities, and utilities.

Steps to calculate your glamping tent ROI

Calculating ROI starts with clear data on your costs and expected revenues. Follow these steps to estimate your return before investing:

1. Calculate total upfront cost: Include purchase price, delivery, assembly, furnishing, and site preparation.
2. Estimate annual revenue: Multiply the average nightly rate by expected occupancy days per year.
3. Factor in operational costs: Account for cleaning, maintenance, utilities, marketing, and staffing.
4. Calculate net profit: Subtract operational costs from revenue.
5. Determine payback period: Divide total upfront cost by net profit per year.

Using these calculations can help you set realistic expectations and plan financing accordingly.

Benefits beyond the numbers: reputation and guest experience

While numbers are crucial, glamping tents bring intangible benefits often overlooked in ROI calculations:

• Brand differentiation: Offering luxury camping sets your campground apart from competitors.
• Improved guest satisfaction: Guests enjoy the comfort of home combined with outdoor adventure.
• Expanded marketing appeal: Attract niche markets such as eco-tourists, families, and romantic getaways.
• Positive online reviews: Higher guest satisfaction translates into better ratings and bookings.

“Since installing Outstanding Tent’s luxury tents, we’ve noticed guests stay longer and spend more. Our online reviews have skyrocketed.” – Sarah Miller, Green Mountain Resort, Vermont

Why choose outstanding tent as your glamping supplier

Partnering with Outstanding Tent means working with a glamping supplier committed to quality, reliability, and support. We provide:

• A turnkey solution: From concept to completion, including design, delivery, and assembly.
• Proven quality: Durable safari tents backed by a 10-year service guarantee.
• International experience: Successful installations across the USA and abroad.
• Luxury with sustainability: High-end finishes combined with eco-conscious materials.

Discover how you can transform your campground with smart investment in outdoor hospitality that delivers lasting ROI.

Summary: a smart investment for future-proof campground expansion

Investing in glamping tents is a proven way to boost revenue, attract new guests, and future-proof your campground or RV park. With average nightly rates between $150 and $300 and occupancy rates up to 80%, your payback period can be as short as 2 to 4 years. The 10-year service guarantee from Outstanding Tent further protects your investment, reducing maintenance costs and ensuring long-term profitability.

Ready to take the next step? Contact Outstanding Tent today for a free consultation and start planning your glamping expansion with confidence.

Outstanding Tent USA contact:
Robert Horsey
Phone: +1 (541) 690-0171
Email: robert@outstandingtent.com
Website: www.outstandingtent.com