Open-air hospitality: investing in campgrounds

Investing in campgrounds not only diversifies portfolios but also allows investors to tap into a thriving tourism niche with potential for substantial returns.

In addition to meeting the increasing demand for green vacations, campgrounds are emerging as one of the most promising and profitable niches in the hospitality sector, presenting new opportunities for real estate investment.

During the pandemic, the resilience of this asset class became apparent. While the broader hospitality industry faced significant challenges, with hotels and resorts either shuttered or operating at limited capacity, campgrounds successfully met evolving tourist needs by offering socially distanced experiences in natural settings.

What began as a temporary situation during a crisis has since solidified into a lasting trend. Today, the campground market continues to expand, attracting increasing interest from travelers and institutional investors alike.

So, let’s explore why investing in campgrounds is a strategic and lucrative opportunity, with the potential to compete with traditional asset classes.

Open-air tourism is experiencing strong growth

The open-air tourism sector is experiencing continuous growth, with campgrounds emerging as key contributors to this trend. According to Eurostat data, in 2023, the sector reached a historic milestone in Europe with 402.2 million overnight stays, marking an 8% increase compared to 2019.

Italy, with its diverse natural landscapes and outdoor attractions, is a particularly popular destination for this type of vacation. According to the Human Company and Thrends observatory, our country ranks second in Europe for open-air tourism, following France

Looking ahead, the outlook remains promising. A study by Exactitude Consultancy projects that the global camping and caravan market will surpass $49 billion by 2030. As for Italy, Faita Federcamping forecasts 11.4 million campground arrivals this year (a 3.5% increase compared to 2023), along with a total of 71 million overnight stays (a 1.3% rise over last year).

A diversified market

The demand for camping holidays is predominantly driven by families, who account for approximately 75% of the market, according to the Camping Report (CaRe) by campeggi.com, the leading portal for campsites and holiday villages. However, Generation Z is emerging as a significant new customer segment. These younger travelers are increasingly drawn to slow and eco-friendly tourism over traditional vacations, favoring experiences with minimal environmental impact.

Geographically, Veneto and Tuscany are the most sought-after regions for campers, as noted by the Human Company and Thrends Observatory. Nonetheless, interest in camping is expanding across Italy, encompassing coastal areas, mountainous regions, and even cultural cities.

This broad interest creates diverse opportunities for the sector, enabling it to cater to various audiences and presenting investors with compelling prospects for growth and innovation beyond traditional hotel investments.

A segment with untapped potential

In Italy, campgrounds are traditionally managed by small, family-run businesses, leaving the sector largely untapped by institutional investors. And while this hands-on, personal approach ensures meticulous attention to detail and a highly personalized experience, it can also limit growth and innovation potential.

This represents a significant opportunity for investors. By entering this market, they can capitalize on emerging trends in outdoor tourism while injecting capital, expertise, and strategic insights that could drive sector evolution. Additionally, by diversifying their portfolios with this alternative asset class, they can actively contribute to the transition toward more sustainable tourism practices, as campgrounds typically have a lower environmental footprint compared to other types of accommodations.

Investing in luxury campgrounds: glamping

In recent years, the concept of camping has undergone a remarkable evolution. What was once considered a low-cost and somewhat spartan vacation has now become a glamorous retreat. This is called glamping, a form of camping that combines the charm of the outdoors with the amenities of a five-star resort. It’s a trend that has highly surged in popularity, grown at a rate of 10% per year according to a 2022 survey by Risposte Turismo.

Beyond its growing appeal, glamping stands out for its commitment to environmental sustainability. Operators prioritize the use of eco-friendly materials in constructing their facilities and design activities that both respect and enhance the natural surroundings. This focus makes glamping an appealing asset class for real estate investments aligned with ESG principles.