Finance & Insurance
- In the world of leisure
Tony Clish
Sales & Marketing Director
Park Holidays UK
1
Circa 3,500 parks – big & small
Few major groups – Haven, Parkdean, Park Holidays UK etc
Groups own larger parks – 400+ pitches
Sell holidays
Sell caravan holiday homes (static caravans / lodges)
Circa 60,000 sold PA new & used
Annual owner site fees
Operate bars, swimming pools, provide entertainment
Established 1985
1985 - 2006 - grew to 19 holiday parks
‘BIMBO’ 2006 – Graphite Capital Private Equity
2006 – 2008 – grew to 23 holiday parks
Secondary MBO 2013 – Caledonia Investments
2013 – £21M EBITDA (2006 £10M)
Thing’s ain’t what they used to be!
We sell circa 80,000 holidays a year…….
-
Price £69 - £1,000
No finance
No external insurance
Sell ‘cancellation protection’ – self insured risk
£10 short break / £20 week
15% penetration
Cancellation cover - sales falling in later booking pattern
5
We sell circa 80,000 holidays a year…….
-
Price £69 - £1,000
No finance
No external insurance
Sell ‘cancellation protection’ – sell insured risk
£10 short break / £20 week
15% penetration
Sales falling in later booking pattern
6
Selling Caravan Holiday Homes…
Spot the difference………
- Low volume – limited supply
- High margin
- Location crucial
- They don’t move
-Minimal brand awareness
- Glass’s guide values
- Hybrid of car / house market
- High volume
- Often low margin
- Selling location not important
- They move (or should do!)
- Cars highly branded
- Glass’s guide values
Park Holidays UK sell circa 2,000 caravans a year…
-
Price £6900 - £200,000
Finance penetration 42%
Average balance £20,000
5 – 10 year term
5.5% - 7% flat
10% + deposit
9
We sell circa 2,000 caravans a year…….
-Price £6900 - £200,000
-Finance penetration 42%
-Average balance £20,000
-5 – 10 year term (20 year pitch licence)
-5.5% - 7% flat
-10% + deposit
-ACCEPTANCE RATE CIRCA 50%
-A BIG OPPORTUNITY TO GROW!!!
10
Our customers…….
-
Typically aged 50 – 70
Live max 2 hours drive from park
Multi- generation buying decision / lifestyle
Have holidayed on the park in past – like location
Flexible retirement / lifestyle
C1 / C2 / D
Blue collar workers / self employed etc
Niche locations – each park different
11
The Caravan Finance Market …….
- Defined as Holiday Homes, Touring Caravans & Motorhomes
- In total £300M - £325M
- Max advance linked to Glass’s Guide – typically 185%
- Term 5 – 10 years
- Low penetration 20%
- Bad debt provision 1.5% - 1.8% typical
- Black Horse 75-80% market share
- Other lenders - Barclays / Close Consumer Finance/ Santander/
Hitachi / Ratesetter / Glenside
12
Caravan Holiday Home Finance –
-An opportunity for new lenders?
-Static caravans are ‘static’!! Don’t disappear!
-We offer risk protection – Repurchase Undertakings
-Lending linked to caravan value Glass’s Guide etc
-Park Holidays UK strong financial covenant – low gearing /
profitable
- GET IN TOUCH TO LEARN MORE!!
13