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Rules Of Thumb

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These were useful guides for group accommodation twenty-five years ago. Do they still ring a bell for you?
Occupancy

  • 2/3rds full 2/3rds of the time is the typical occupancy of a profitable camp.

Expenses – labour – profit balance — the rule of thirds:

  • 1/3rd operating expenses
  • 1/3rd labour costs
  • 1/3rd “profit” – this is the money from which you pay the bank and yourself (gross figure before tax and loans)

Return rate

  • If you’re not fully booked for the following year by June, you should be concerned.
  • 80-90% return bookings, keeping in mind that some, you don’t want to come back, and some return every second year.

Meal costs — some rough estimates

  • Provisions (food costs) is about 20% of overall campsite expenditure
  • Labour cost is normally 45% of total meal cost.

See ‘Estimating meal costs’