When we started Ferncrest, one of the most exciting discoveries was just how profitable glamping can be compared to traditional camping or high-end resorts.
We knew people craved unique outdoor experiences, but the profit margins we’ve seen in glamping far exceed expectations.
Understanding Profit Margins in Hospitality
Before we break down the numbers, it’s important to understand what profit margins represent. In hospitality, it’s all about balancing revenue with overhead costs. For example, how much do you need to spend to run your operation, and how much of your revenue translates into profit?
Different models within hospitality—like traditional campgrounds, resort hotels, and glamping—have vastly different overheads, customer expectations, and pricing structures, which all impact profitability.
Let’s explore the differences in these models now!
Traditional Camping: Low Cost, Low Margin
Traditional camping businesses, like campgrounds or RV parks, typically come with low upfront costs but also lower revenue potential.
- Typical margin: Around 10-15%.
- Low pricing expectations: Campers seek budget-friendly options, making it harder to charge premium rates.
- Minimal amenities: Simplicity limits upselling opportunities.
While traditional camping can be profitable, its low prices and simple offerings make it difficult to achieve the high margins we’ve seen at Ferncrest.
Resort Hotels: High Cost, Moderate Margin
Resort hotels offer luxury amenities but require high capital investment and incur significant operating costs.
- Typical margin: Around 20-30%.
- Higher revenue potential: Guests are willing to pay for luxury, but ongoing costs cut into profits.
- High occupancy needed: Profitability often relies on year-round occupancy, which can be a challenge.
Resorts generate decent margins but require large financial commitments to maintain.
Glamping: Low Overhead, High Margin
Glamping, especially what we’ve experienced at Ferncrest, strikes a balance between low overhead and high revenue potential.
- Lower overhead: Unlike resort hotels, glampgrounds don’t need large buildings or full-time staff. Ferncrest offers luxury with lower operating costs.
- Premium pricing for unique experiences: Guests are willing to pay more for a luxury stay in nature. At Ferncrest, we’ve seen people pay top rates for amenities like hot tubs and saunas.
- High margins with low occupancy: Glamping doesn’t require full bookings to be profitable. We’ve remained profitable at Ferncrest, even during slower months.
- Typical margin: Glampgrounds like Ferncrest often achieve margins of 30-60%, much higher than traditional camping or resort hotels.
If you’re considering entering hospitality, the numbers are clear—glamping offers some of the highest profit margins, even with moderate occupancy rates. At Ferncrest, we’ve built a sustainable, high-margin business by focusing on unique guest experiences without the massive overhead costs of resorts.
Want to Learn More?
Glamping offers a path to high profitability without huge capital investments. If you’re ready to start your own glampground and tap into these margins, we’re here to guide you.
Join the waitlist for our upcoming program, where we’ll teach you everything you need to build a high-margin glampground like Ferncrest. As a waitlist member, you’ll get exclusive insights and special pricing when we launch.
👉 Sign up for the waitlist here to get more info.
Happy Glamping!
Brian & Joanna Linton
