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Caravan of love

Geoff Riley

26th May 2008

An unintended consqeuence of the credit crunch and the sharp depreciation in the value of sterling against the Euro is a rise in demand for fixed caravans in holiday parks across the UK and a jump in demand for motorhomes.

The Times looks at this in an article today:

“Caravans look likely to make a comeback this summer, as high bills, the low pound and environmental concerns drive holidaymakers back to Britain’s camp sites. According to the National Caravan Council, many young parents are also nostalgic for the seaside holidays of their childhood and want to keep their children away from television and computer screens. Figures from the NCC reveal a 20 per cent rise in camp site bookings for July and August, while trade in caravans also appears to be rising.”

Watching the Tour de France each summer I am staggered by the sheer number of motorhomes that follow the tour throughout the length and breadth of the country. Here in the UK there seems to be a change in consumer preferences towards the mobile home life and family holidays in well-appointed caravan parks. Heavy investment in new facilities has created increased supply capacity. A new category of “certified caravan locations” has also increased the number of venues where small caravna parks can be established at minimum cost.

All of this is a welcome boost to the UK tourism industry and to many rural locations if not to those motorists who get stuck behind a trail of motorhomes on narrow roads this summer.

The rest of the Times article is here: Credit crunch sparks new British caravan craze

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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