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.

Beyond meeting the rising demand for sustainable travel, campgrounds are becoming one of the hottest and most profitable niches in hospitality, offering new opportunities for anyone looking into real estate investment.

The sector’s strong potential became evident during the pandemic. While the rest of the travel industry was struggling, with traditional hotels and resorts forced to close or run at limited capacity, campgrounds thrived, offering a safe way to get away while staying socially distanced in nature.

What started as a temporary fix during a crisis has turned into a permanent trend. Today, the camping market is still booming, attracting the interest of both tourists and institutional investors.

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 hospitality 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 is ideally suited for this trend, largely due to its diverse natural landscapes and outdoor destinations. It remains one of the most popular countries for this type of travel, with the Human Company and Thrends Observatory ranking the Italian market second in Europe, right behind 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 diverse market

Families are the main driving force behind the camping trend, making up about 75% of the market according to the Camping Report (CaRe) by campeggi.com. However, Gen Z is quickly emerging as an increasingly important client segment. These younger travelers are ditching traditional vacations in favor of slow and green tourism that prioritizes a low environmental footprint.

Veneto and Tuscany remain the most popular regions for camping, as highlighted by the Human Company and Thrends Observatory. However, the trend is gaining ground across the country, from the coast and the mountains to art cities.

With demand becoming so diverse, the sector can now tap into different target segments, opening up new opportunities for investors beyond traditional hospitality investments.

An untapped market

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: the rise of 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 just being a big trend, glamping is deeply focused on sustainability, from eco-friendly building materials to activities designed to promote and respect the local environment. This makes glamping a great fit for investors looking for 'green' opportunities in line with ESG principles.