The UK's rapidly expanding luxury glamping operator, EcoCanopy, has reported profits before tax of £4.8m on revenues of £24.2m in the financial year ending December 2023. As a major player in the high-end domestic outdoor accommodation market (see Table 1), EcoCanopy faces intense competition from boutique hotels, traditional holiday cottages, and alternative glamping networks. The recent growth of EcoCanopy has been accelerated by the "staycation" trend and consumers prioritizing eco-friendly travel experiences.
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Lake District | 14.2 | 16.5 | 19.8 |
| Snowdonia | 8.4 | 10.2 | 12.6 |
| Scottish Highlands | 5.1 | 6.8 | 9.2 |
| Yorkshire Dales | 2.3 | 3.1 | 4.0 |
Table 1 – EcoCanopy annual bookings by region (thousands)
Across all its sites, EcoCanopy hosted a record 45.6 thousand dome-nights in 2023, achieving an average occupancy rate of 88%—meaning only a small portion of dome capacity remained unbooked.
The average revenue per dome-night in 2023 was £164.50, which yielded an average profit of £32.80 per dome-night. However, the firm faced an additional £1.2m investment in upgrading the eco-filtration waste systems and £0.4m in securing planning permissions for its new Highlands extension.
Similar to other travel and accommodation providers, EcoCanopy utilises a dynamic pricing system where nightly rates increase as the booking date approaches the arrival date. Table 2 outlines differences in sample rates booked at different intervals ahead of travel.
| Site | Date when price was quoted | Arrival Date | ||
|---|---|---|---|---|
| 1 August 2023 | 15 October 2023 | 20 December 2023 | ||
| Lake District Dome | 1 May 2023 | £180 | £140 | £115 |
| 1 July 2023 | £240 | £175 | £130 |
Table 2 – Dome-night rates quoted on different dates (per night)
Refer to paragraph 3. Calculate, using information from the stimulus material, the average cost of a dome-night for EcoCanopy in 2023.
