Thinking of Buying a Cabins or Cottages Business in Australia? Here Are 3 Vital Questions to Ask

 

The Australian cabins and cottages sector, captured within the caravan parks, holiday houses, and other accommodation industry, generated $5.5 billion in revenue in 2025 across more than 10,600 enterprises, employing over 19,000 people.

 

Profit margins average 4.9%, with total profits reaching $269 million. After years of turbulence caused by the pandemic and shifting travel trends, the market is now stabilising, supported by the return of domestic tourism, increased household savings, and growing eco-travel preferences.

 

Holiday cottages and cabin parks have become popular among families and older travellers seeking affordable, nature-based getaways. Revenue is projected to grow 1.6% annually through 2030, reaching about $6 billion.

 

1. Is the Business Financially Sustainable and Seasonal-Ready?

 

Why It Matters:

 

Cabin and cottage businesses are cyclical, with demand tied to tourism and household disposable income. Businesses that manage seasonal fluctuations and diversify their client base achieve greater financial resilience.

 

What to Check:

• Revenue base – The sector recorded $5.5 billion in 2025, with caravan parks and holiday cabins accounting for over 30% of this total.

• Profitability – Margins average 4.9%, though smaller operators face tight returns due to competition and rising rent costs.

• Seasonal exposure – Occupancy peaks in summer and school holidays; check cash flow stability during off-peak months.

• Pricing and occupancy – The average nightly rate for holiday parks reached $209 in NSW and 66.5% occupancy in QLD in 2023–24.

• Cost management – Key expenses include property maintenance, wages (50% of revenue), and utilities. Smaller operators owning their property are less affected by rent inflation.

 

2. Does the Business Have a Strong Market Position and Loyal Customer Base?

 

Why It Matters:

 

Competition from Airbnb and major chains like Discovery Parks has reshaped the accommodation landscape. Cabins and cottages thrive through strong local branding, customer loyalty, and niche experiences.

 

What to Check:

• Target market – Travellers aged 55 and over represent the largest and most reliable demographic for cabins and holiday cottages.

• Reputation and reviews – Positive online ratings and return bookings drive consistent demand, especially among regional holidaymakers.

• Affiliations and networks – Membership with Big4 Holiday Parks or similar groups boosts marketing exposure and credibility.

• Location – Regional and coastal areas such as Queensland, Victoria, and NSW dominate, benefiting from road tourism and beach access.

• Value proposition – Eco-friendly features, pet-friendly policies, and nature-based activities increase appeal to long-term domestic travellers.

 

3. Is the Business Positioned for Future Tourism and Sustainability Trends?

 

Why It Matters:

 

Travel preferences are evolving, with tourists favouring sustainable stays and “glamping” experiences that combine comfort with environmental awareness. Businesses adapting to these shifts will see stronger growth.

 

What to Check:

• Eco-tourism potential – Rising environmental awareness is fuelling demand for low-impact accommodation like cabins and eco-cottages.

• Infrastructure investment – Major operators are investing in glamping sites and energy-efficient cabins to attract eco-conscious travellers.

• Technology – Online bookings, automated check-ins, and strong social media engagement now underpin most profitable operations.

• Industry consolidation – Companies such as Discovery Parks (7.7% market share) and Tasman Holiday Parks (2.5%) continue to acquire smaller businesses.

• Economic resilience – With interest rates easing and domestic spending rising, discretionary tourism is forecast to strengthen through 2031.

 

Ready to Invest in a Thriving Cabins or Cottages Business?

 

With domestic tourism stabilising, demand for affordable, nature-based holidays is fuelling renewed interest in Australia’s cabins and cottages sector.

 

Success depends on location quality, customer experience, and the ability to adapt to sustainability and technology-driven tourism trends.

 

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