Property investment firm Advantage Investment explores why the UK staycation boom is providing the best opportunities for investors.
The travel restrictions and hesitancy to travel abroad amid the Covid-19 pandemic have hit the travel industry hard. While foreign travel operators have been left frustrated by the Government’s ever-changing red, amber and green list rules, the UK holiday industry has been thriving throughout the summer.
Despite there being much fewer foreign visitors coming to the UK for tourism, UK holidaymakers who would usually be booking flights to Europe and other destinations in search of a warm, sunny getaway are opting for staycations instead.
For anyone who has tried to book a UK staycation during the summer holidays at popular destinations such as Cornwall, Devon and the Lake District, you will no doubt have discovered two main trends. Firstly, there is very limited availability and secondly, the prices are considerably higher than usual. In many cases, would-be UK holidaymakers have been priced out of their summer holiday.
Price hikes and limited availability might not be great for holidaymakers but for the hotels, campsites and other hospitality businesses who have been unable to open throughout lockdowns, they are making up for lost revenue.
The financial statistics for UK accommodation revenue for summer 2021 will not be available for some time but it is clear that there has been an unprecedented demand for UK holiday accommodation.
The uplift in bookings for the end of 2021, going into 2022 indicates that this is not just a summer trend, people have been also booking autumn and winter breaks, knowing that flying somewhere to find some winter sun is not likely this year or in early 2022.
Holiday let owners are cashing in
Many UK holiday let owners in the most sought-after locations have been able to increase their prices over the summer holidays, to generate higher revenue due to the huge demand.
Property investors have also been quick to take advantage of the golden opportunities to profit from the UK staycation boom. In the first half of 2021, 1,401 holiday let companies were incorporated, an uplift of 83% on the previous year and a 119% increase for the year before that.
What is also interesting is that there has been a shift in the most searched for UK holiday destinations. City breaks to places like London and Edinburgh are no longer as appealing, as people prioritise places of natural beauty and lots of outdoor space to explore safely.
Scenic and quiet spaces are in high demand and property investment companies such as Advantage Investment Ltd have been leading the way in optimising the opportunities by catering to demand.
They have been working on building luxury lodge developments in scenic areas of Scotland, which offer the perfect solution for holidaymakers, as well as property investors who can buy the lodges to make an attractive profit.
You can find out more about stunning luxury lodge developments available through Advantage Investment.