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04 May 2017 08:01
Holidaymakers are having to contend with a weakened pound
Some Britons appear to be rethinking their holiday decisions in the wake of the weakened pound.
Foreign holidays remain popular with families, and many will be shopping around for things like travel insurance, flights and accommodation as usual ahead of the busy summer season.
However, new figures indicate that so-called 'staycations' have also grown in prominence on the back of sterling's decline following the Brexit vote.
New staycation boom
A new report from Ortus Secured Finance shows that the UK's largest holiday parks enjoyed takings of £2.7 billion last year. Their turnover climbed by 9%, and the latest figure compares favourably with the £2.46 billion witnessed five years ago.
The staycation trend originally emerged following the credit crunch and recession, as families looked to tighten their belts. But with the pound still relatively weak against the euro and US dollar, staycations appear to be back in vogue once more.
A weak pound can ultimately bump up the costs people face while abroad.
Maximising guest experiences
Commenting on the new data, John Salisbury, Ortus managing director, said: "Caravan, camping and holiday parks are going from strength to strength, combining value for money with high standard facilities to maximise the guest experience.
"The recession and the ensuing trend for staycations gave holiday parks, camping and caravan sites access to an even broader customer base, and they have been building on this ever since."
Solid growth and revenues have made holiday park companies targets for private equity deals.
For example, last year saw the £1.35 billion sale of Parkdean Resorts to Canadian private equity firm Onex Corporation.
Elsewhere, Park Leisure was recently purchased by a consortium led by Midlothian Capital Partners for a sum of £103 million. And Intermediate Capital Group purchased Park Holidays for £362 million in 2016.
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