Is glamping a good business?

Glamping can be a good business, but it is not an automatic one. Sites that do well choose the right land for the right guests, build units that suit the climate, keep costs under control and work hard on getting bookings. This guide walks through the money side so you can judge your own project.

What it costs to start

The investment depends on where the site is, how many units you build and how much comfort each unit offers. A single furnished glamping unit can cost anywhere from about ₹5 lakh to ₹50 lakh, depending on its size, structure and finish. On top of the units you will need:

• Site work: access road, paths, levelling, decks or platforms, drainage.
• Services: water supply, sewage or soak pits, power, backup, lighting, internet.
• Bathrooms, either built into each unit or as separate washroom cabins.
• Common areas: arrival and reception, dining, a kitchen, staff rooms and storage.
• Approvals, design fees, furniture, linen, a website and launch marketing.
• A contingency of 10% to 15% for the things nobody planned for.

Remote sites and very high finishes raise every one of these lines, so a careful budget at the start is worth more than any later saving.

What a unit can earn

Room rates vary with location, season and how special the stay feels. As a rough guide for India, simple sites with few facilities often charge around ₹4,000 to ₹8,000 a night. Sites with private decks, ensuite bathrooms, hot tubs, great views or a strong food offer can charge ₹8,000 to ₹15,000 a night or more.

Rates only matter if the units are full. Occupancy is driven by how easy the site is to reach, how well it shows up online, the reviews it earns and how many reasons it gives people to come on weekdays and in the off season.

A simple worked example

Take a site with 6 units at an average of ₹9,000 a night and 45% occupancy across the year. That is about 985 room nights, or roughly ₹89 lakh of room income a year. If running costs (staff, food, power, upkeep, commissions and marketing) take half of that, about ₹44 lakh is left each year to repay the investment.

If the units and site work together cost ₹1.5 crore, the investment would pay back in a little under 4 years. Change any input and the answer moves quickly, which is why it pays to test several cases: a slow year, a good year, and what happens if the rate or occupancy is 20% lower.

Ways to earn more from the same site

• Food and drink: breakfast, private dinners, a bonfire barbecue.
• Experiences: guided walks, stargazing, farm tours, cooking with local families.
• Events: small weddings, birthdays, retreats and company offsites, which fill weekdays.
• Add-ons such as hot tubs, outdoor cinema or a fire pit that justify a higher rate.
• Direct bookings through your own website, which save the commission paid to booking sites.

What to watch out for

• Seasons. Many locations have a strong season and a quiet one. Plan cash flow for the quiet months.
• Weather. Monsoon rain, heat and cold all need the right structure, decks and drainage.
• Access and permissions. A poor road or a missing approval can stop a project. Check both before you buy units.
• Staff and service. Guests pay for an experience. Good hosts and clean bathrooms decide the reviews.

Start small, then grow

Many owners begin with a few units and common areas sized for the full plan, then add units as bookings grow. Tents and pods suit this well, because each new unit can be added without disturbing the ones already open. When you are ready, our guide on writing a glamping business plan will help you put the numbers in order.