A BOOM in caravan holidays as the recession bites is paying dividends for family businesses in Scotland.
A BOOM in caravan holidays as the recession bites is paying dividends for family businesses in Scotland.
The credit crunch and collapse of the pound against the euro has prompted a surge of bookings at caravan parks and holiday homes sales as families opt to stay at home.
Many of these businesses are family-owned and have survived downturns through several generations, according to the Scottish Family Business Association.
They include Cairnsmill Caravan Park at St Andrews, run by third generation owner John Kirkcaldy with his sisters Margaret and Caroline, niece Michelle and son Alan.
John’s great uncle originally ran the site as a dairy farm and introduced the first caravans around a reservoir on the land in the early 1950s. Cairnsmill now comprises 200 static caravans and space for around 60 touring caravans.
“Because we’re a family business, we’re prepared to go that extra mile to keep the business moving, and that often means rolling up our sleeves and doing more work ourselves rather than relying on employees,” John explains.
“You’ve got to be pretty resilient and be prepared to anything, including working late at night, early in the morning and at weekends. It’s not a nine to five job which doesn’t suit everyone.” John says his father also believed in trying to meet people’s budgets rather than running the business for pure profit. This tradition has helped to keep prices competitive.
Normally Summer bookings wouldn’t start until after Easter, but the park’s phone is already ringing off the hook.
“We’re already taking bookings for July, August and September,” John says. “We usually get bookings about a month in advance, but now they’re happening at least two months’ in advance. Enquiries have definitely gone up.”
The Caravan Club recently announced that advance bookings are up 40% on last year. The Camping and Caravanning Club has also reported a 15% rise in advance bookings and expects new member signings in 2009 to rise above last year’s 53,000.
The British Holiday and Home Parks Association tells a similar tale.
Colin Fraser, BHHPA chair in Scotland and owner of Colin Fraser Park Home Estates, says: “The credit crunch is good and bad news for the industry. Sales of caravan holiday homes are flat, which is bad news for the manufacturers, several of whom have gone into liquidation. I am very concerned tat once sales pick up we will not have a big enough manufacturing base to meet demand. Holiday parks are seeing more people coming in with touring caravans, motorhomes, tents and bookings for hiring caravan holiday homes are well up. I know that touring parks and caravan holiday home parks are going to do very well this year.”
Colin bought his first caravan 46 years ago for £95 which he rented out at Banff Links. He bought his first park 37 years ago and has never looked back. He now owns 6 parks in Aberdeen with 320 residential pitches and 67 touring pitches. His son, Kris, owns the holiday park at Buckie which has 70 caravan holiday homes and touring pitches.
“I think the family ownership element does give the industry more resilience, because people treat the business as their baby in a way,” Colin says. “If you’re in the caravan industry, it’s something you enjoy and get great job satisfaction from. It’s not a job where you wake up in the morning and wish you weren’t going to work. Owners are proud of their caravan holiday parks. The grading of parks is done by VisitScotland ranks about 75% of them as either four or five star. So they’re kept in really good order. Many also have conservation awards from David Bellamy, with those involved having either Silver or Gold Awards.”
Competing at the quality end of the leisure market, Scotland’s 200-plus holiday parks – most of which are family owned and managed – are major players in generating the country’s annual £4.5 billion tourism income. The sector also helps to sustain many of Scotland’s estimated 200,000-plus jobs which are tourism related.
Martin Stepek, chief executive of the Scottish Family Business Association, recently gave a presentation to members of the BHHPA and believes deep family roots can help businesses survive, evolve – and thrive – through multiple downturns and generations.
“Nearly all of these holiday parks emerged from land-owing farmers, themselves family businesses, who were looking to use their land more productively,” Stepek says. “A lot of the owners now represent third, fourth and fifth generations who have lasted through as many recessions. Holiday parks came into their own after the war when people were just emerging from poverty and could really only afford a holiday for the first time. Now they’re enjoying a new resurgence as people cut back on costs and opt to stay at home rather than going abroad.”
“With improved access to education, training and professional advice specific to their distinctive model of business, we believe family firms will be the key to a strong, stable, and ethical foundation for Scotland’s economic recovery and this is where we should be investing our economic development strategies and resources.”
Tags: caravan, Caravan News, caravan park, caravans, Caravans for Sale, Caravans For Sale Scotland
