Will ECG’s business be stuck or going places this year?
One benefit for campsites over other holiday destinations, according to the specialist, is the fact that “the accommodation units are isolated [and] many facilities are outside, so social-distancing and mask-wearing rules and guidelines are pretty easy to follow.” Added to that, campsites may also avoid having to restrict visitor numbers.
ECG has two types of operating model, the more prevalent of which is its partner-site model. “The main advantage of the partnership model is the flexibility of it, so you have the opportunity to come out of a contract relatively quickly if it’s not working. It gives you the flexibility to try new destinations, new geographies as things move along.”
The specialist also highlighted the fact that more than one operator can be found on a campsite. While picking more popular sites can improve footfall and media visibility, there are some pitfalls. “In those places, there is an ongoing challenge to retain plots and ongoing attempts to try to gain some of your competitors’ plots, and indeed there is the threat from the independent partner who wishes to perhaps reduce the tour operator presence and operate more of their own units themselves.”
Looking at future recovery prospects, the former SVP is positive about revenue for ECG whether international travel is allowed or not. There is “good pent-up [domestic] demand and I think it will compensate in some respects for the reduced international traffic.” What’s more, the sector had been growing prior to the pandemic, thanks to “considerable and consistent investment”, and this is a typical type of holiday in France.
To access all the human insights from Third Bridge Forum’s European Camping Group – 2021 revenue & cost outlook Interview, click here to view the full transcript.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
For any enquiries, please contact email@example.com