Letter from Ruben Martinez

BY RUBEN MARTINEZ

One of the biggest questions that has been front and center in the glamping industry has been: What does the 2021 season and beyond look like for the industry? And now that the summer season is upon us, we are beginning to gain more and more exposure to how far or close we were in our earlier predictions.

Here are a few key items to consider and what we see the future holds for the industry:

It has been no secret that there has been massive pent up demand all around the travel industry. And as the vaccine roll out continues into the Fall, confidence will continue to grow, and guests will look first to the outdoors and glamping again as it is perfectly positioned to take on this wave of travelers looking to emerge from travel restrictions. Operators should expect again a record setting year as we continue to witness significant advanced booking activity which started in January of 2021 and booking for the summer months. Typically, an average glamping guest will book a trip 2-3 weeks in advance, but we are now seeing large scale bookings 3-4 months in advance which is telling us that booking habits are continuing to shift as there is an overwhelming amount of demand. And interestingly enough we have been seeing the 60+ age group leading the charge in booking travel as they are fresh off of receiving their vaccination and it looks like their confidence and appetite to travel has returned with significant momentum.

I am sorry to say that just because there will be a record amount of demand that does not mean that starting your glamping operations will be any easier. There remains consistent hurdles to begin an operation at a small or large level. Capital and operational permitting still remain the top items to navigate. As the industry continues to mature, there will be more access to information and opportunities, but the reality is that new operators will continue to encounter consistent challenges as they start up their start up. But with that being said, the good news is that even though these challenges still exist, the pathway to get your operation off the ground is there, it just might take longer than you initially expected.

We were reminded a few months ago that weddings were not cancelled during the pandemic, they were just postponed. With that in mind the outdoor space and glamping will see an uptick in outdoor events such as weddings, corporate events and family reunions. The feedback from glamping event organizations is that they are mostly sold out and are having to turn events down at the moment. We are constantly telling operators to think about how events can be woven into their business because the demand will continue to grow here. As events make a return, the glamping element is proving to be an effective solution as this transition emerges and as people begin to navigate the return of large event gatherings.

It is safe to say that over the last twelve months there has been a development boom in the glamping industry unlike anything we have ever seen before. And with that growth came a buying frenzy of glamping units of all shapes and sizes. The combination of that demand coupled with international supply side logistical issues due to the pandemic, created an unpredictable supply channel with longer lead times. The days of guaranteed last minute supply may be behind us for a while and we advise that you make your structure selection a high priority and move it to the front of the list as you work through the execution of your project.

The hard truth for travelers is that supply has not caught up with the demand that we are seeing for glamping accommodations. There will be limited options for stays this summer due to operators experiencing close to full capacity. If you are a traveler that has already booked a few glamping vacations this year, then you were smart to do so because availability will be an issue for the foreseeable future. There are a lot of great operators that have one of a kind experiences and there are even more new operators that are starting their first season this year. But even with all the growth we are seeing on the operator side of the equation it still is not enough to meet the growing demand of travelers looking for a glamping destination. This is a good problem to have in the industry but nevertheless a key focus moving forward.