Why Bigger Is Not Always Better: The Profitability of Smaller Campsites
Many campsite owners dream of expansion.
More pitches.
More accommodations.
More facilities.
More guests.
The assumption is simple:
A larger campsite should generate more profit.
But in practice, things are not always that straightforward.
Some of the most profitable campsites in Europe are not the largest.
In fact, smaller campsites often outperform larger competitors in key financial metrics.
More Guests Also Mean More Costs
Growth brings opportunities.
But it also brings expenses.
As campsites expand, they often face higher:
- staffing costs
- maintenance expenses
- utility bills
- infrastructure investments
- management complexity
Revenue may grow, but costs often grow as well.
Boutique Experiences Are Increasingly Popular
Many guests are looking for:
- peace and quiet
- nature
- authenticity
- personal service
Smaller campsites can often deliver these experiences more effectively than large holiday parks.
This creates opportunities for premium pricing.
Personal Service Creates Loyalty
Owners of smaller campsites are often more involved in daily operations.
Guests appreciate:
- personal recommendations
- direct contact
- flexible service
- familiar faces
These experiences frequently lead to stronger reviews and repeat bookings.
Occupancy Is Often Higher Than Expected
While larger parks depend on filling hundreds of units, smaller operators can sometimes achieve higher occupancy rates with fewer accommodations.
A smaller inventory can create:
- scarcity
- higher demand
- stronger pricing power
Especially during shoulder seasons.
Less Complexity Means More Control
Managing a campsite with:
- 30 pitches
- 10 accommodations
is very different from managing:
- 300 pitches
- 100 accommodations
Smaller operations often allow owners to react faster and make decisions more efficiently.
Investment Risk Is Lower
Expansion requires capital.
New facilities, accommodations and infrastructure often require significant investment.
Smaller operators may enjoy:
- lower debt exposure
- lower financial risk
- greater flexibility
Especially during uncertain market conditions.
Bigger Can Still Be Better
This does not mean larger campsites cannot be successful.
Many large parks benefit from:
- economies of scale
- wider facility offerings
- stronger market visibility
The key is ensuring growth improves profitability rather than simply increasing workload.
Focus on Profit, Not Size
The most successful campsite owners ask a different question.
Not:
“How big can I become?”
But:
“How profitable can I become?”
These are not always the same thing.
The Best Campsite Is Not Always The Largest
Growth can be a powerful strategy.
But growth should serve profitability, not replace it.
Whether operating a boutique glamping site or a large holiday park, long-term success depends on creating value for guests while maintaining a sustainable business model.
Sometimes, smaller really is better.
