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Expansion strategies of french camping chains
- 1. The different expansion strategies of French camping chains Augustin Remiot March 18
- 2. Camping Chain (franchise or management) Camping brand (affiliates) Camping* Hotel* * Most of the owner-operator chains offer both franchise and management agreement. 1) Change in Business model & Asset management Camping Group (owner- operator) Capital intensive Asset light
- 3. 1) Change in Business model & Asset management Sale and Lease back Creation of Franchise brand Asset light strategy - Sale of 9 campsites in October 17 to finance the development plan « Cap 2020 » - Creation of a new franchise brand under the name « Tohapi » - Aims to recruit 50 franchisee in 3 years
- 4. Benefits of Sales & Leaseback: • Secure the management of the campsite over a long term (15 years +) • Increase the cash on hand for further expansion Benefits of starting a Franchise: • Accelerate expansion • Reduce the amount of capital required • Reduce the risks when entering a new market 1) Change in Business model & Asset management
- 5. Direct Sales OTAs Tour-operator Campsite’s stock of total available overnight stays (# pitches x #days opened) Allotment of # pitches (cf contract) Owned by camping chains Acquisition of OT Leverage for expansion 2) Acquisition of tour operators (control distribution)
- 6. 2) Acquisition of tour operators (control distribution) Acquisition of Canvas Holidays, British tour-operator in 2014 Acquisition of Adriatic Kamp , Croatian tour-operator in 2016 (12 Croatia,3 Italy) Acquisition of Eurocamp, British tour- operator in 2014 Acquisition of Roan a Dutch tour- operator and Go4camp, two tour- operator in 2016
- 7. 2) Acquisition of tour operators (control distribution) Benefits of acquiring (international) tour operators: • Enables to attract international guests easily and to control the distribution • Increases the fleet of mobile homes on partner sites • Add new destinations and campsites to the group’s portfolio • Enables to gain insights on campsite performances in new markets • Facilitate the discussions with owners of partner sites on a potential takeover/management/franchise agreement
- 8. 3) Partnerships Public Private Partnerships with Orbitur, the largest camping chain in Portugal. Partnership with National Forest office in France to obtain public service delegation contract Partnerships the society of outdoor recreation establishments of Quebec Partnership with Sichuan Tourism Group in China
- 9. 3) Partnerships Benefits of Partnerships: • Accelerate expansion • Reduce the amount of capital required • Reduce the risks when entering a new market
- 10. Who is going where ?
Editor's Notes
- Today I wanted to elaborate on the expansion of the camping industry and more precisely on the different expansion strategy of French camping chains. Throughout this presentation, I would like to show the different leverages used by these companies to grow . To this extent,I will first introduce you to the different types of business model across camping chains and to the sales channels in the camping industry. We will see that the change in business model and asset management strategy is one of the leverage and that the acquisition of main tour operators is another tool used to expand quickly.
- In the first place, we will see that major camping chains in France are planning their expansion by changing their current business model and asset management strategy. As you can see the business models in the camping industry are relatively similar to the ones in the hotel industry. The majors camping chains are either owner operator, working under franchise agreement or consists of voluntary groups of independent campsites. While these categories were quite well defined until recently, an increasing proportion of the owner-operator chains are selling their assets and adopting an asset light to finance and accelerate their expansion. Therefore, we will see that the change in asset management is one the leverage used by French camping chains in their expansion plan.
- In addition to the change in asset management strategy, French camping chains are also expanding through the acquisition of major tour operator. Similarly to hotels, campsites can sell their pitches directly or through intermediarie. Based on the signed contract betweens these intermediaries and campsites, an allotment of a given number of pitches for the year is agreed upon. The OTAs are given the responsibility to sell their inventories. Usualy the OTAs and tour operators, present in many campsites all over Europe, use the alloted pitches to install their fleet of mobil-homes and to sell overnight stays under their brand. In the last three years, we have seen an intense consolidation in the Tour operator market in which international tour operator were bought by large camping chains. These acquisitions enabled major camping chains to increase their fleet of mobile-homes, to attract international guests and to expand their portfolio of offered destinations. As a result, acquisition of tour operator is another leverage used by major camping chains to enter new markets quickly by acquiring a fleet of mobile homes in various campsites.
- Partnership is another leverage used by French camping chains to expand internationally. We differentiate two types of partnerships: public and private. Huttopia, the leader of the glamping industry in France mainly focuses on public partnerships and public service delegation contract to expand their operations internationally. Their nature-oriented concept attracted many international partners who would like to implement it in their countries. In 2014, they signed a partnership with the Sichuan Tourism group to develop 30 campsites in China. Private partnerships are also used by camping chains in their expansion strategy. Vacalians, the leader of the camping industry has recently signed a partnership with Orbitur, the largest camping chain in Portugal in order to expand their operation in this country.